K-IFRS Adoption and Korea Discount

This study discusses the issue of Korea discount of Korean listed companies and examines whether the Korea discount problem has been solved by adopting IFRS. The issue of accounting transparency and earnings quality was discussed in Korea using K-GAAP accounting standards. Companies have been able to adopt K-IFRS since 2009 for accounting transparency and comparability, and mandatory adoption began in 2011. We think the adoption of K-IFRS will improve the accounting transparency of the company and solve the Korea discount. In this study, we analyze the difference in corporate value before and after the adoption of IFRS and examine whether there is a solution to the Korea discount. The PBR and PER of companies before and after the adoption of IFRS are compared and analyzed from 2001 to 2023. As a result of the analysis, the PBR and PER after the adoption of IFRS increased compared to before the adoption of IFRS, that is, the Korea discount was reduced after the adoption of IFRS. This study is meaningful in that it examined the solution of Korea discount, which is a chronic problem of Korean companies.