Translation to English

“KOSPI 5000 Possible if Lee Reforms Inheritance Tax… Chipmakers and Banks in Focus”

Interview with Ohad Topor, Chairman of TCK Investments

Kim Woo-young for Economy Chosun
June 30, 2025

“If the Lee Jae-myung administration tackles Korea’s inheritance tax issue, the KOSPI is likely to reach 5000 during his term.”

Ohad Topor, Chairman of global independent wealth manager TCK Investments (“TCK”), made the remark in a recent interview when asked about the feasibility of the government’s pledge to reach 5000 on the KOSPI. Korea also ranks as one of the highest inheritance tax rates among OECD countries. For example, after the death of Samsung Electronics Chairman Lee Kun-hee in October 2020, the Samsung family reportedly faced an inheritance tax bill of KRW 12 trillion. At the time, foreign media outlets such as The Wall Street Journal reported that it was the largest inheritance tax payment in the world. Topor also noted that “Korea’s high inheritance tax creates some incentives for controlling shareholders of listed companies to pursue tax optimization objectives, as opposed to being fully focused on maximizing shareholder value.” He added, “We believe successful reforms need to target the incentive structure for corporate owners — for example, by providing specific tax breaks to companies that boost shareholder value.”

Originally from Israel, Topor founded TCK in 2012, guided by the investment philosophy of legendary Wall Street investor Howard Marks of Oaktree Capital. Today, TCK has offices in Seoul and London, and provides asset allocation strategies to ultra-high-net-worth individuals (UHNWIs) and corporate clients. The following is a Q&A with Ohad Topor.

Do you believe the Lee Jae-myung administration’s pledge to reach KOSPI 5000 is achievable?

“Of course. Reaching KOSPI 5000 within the next five years isn’t impossible. But it will take time and effort. For KOSPI to rise from the current level of around 3000 to 5000, it needs to rise by 67%. In order to achieve this, the KOSPI would need to rise by an average of more than 10% per year over the next five years. The issue is that the KOSPI has gained only around 5% per year on average for the past 30 years or so — in other words, the KOSPI would need to produce more than twice its average annual gains to achieve a level of 5000 within the next five years. That’s why structural reform is essential.”

 What kind of reforms are you referring to?

“One of the key areas ripe for reform is inheritance tax. For heirs of majority shareholders, Korea’s inheritance tax rate can reach up to 60%, which is four times the OECD average of 15%. This is one of the biggest long-standing causes of the Korea Discount, which contributes to keeping Korean share prices undervalued. The high inheritance tax rate creates an unusual incentive for corporate owners to focus not on increasing shareholder value, but on pursuing tax optimization objectives. We believe successful reforms need to target the incentive structure for corporate owners — for example, by providing specific tax breaks and other benefits to companies that engage in virtuous practices.”

The government is also considering amending the Commercial Act to boost the stock market.

“The amendment of the Commercial Act is one part of broader reforms being pursued by the new administration, so should not be considered in isolation. In a narrow sense, the reform to protect minority shareholder rights is seen by some companies as controversial, because it may create wrong incentives for majority shareholders to be more cautious in running the business and take less risk. Korean corporates compete globally for business, so their leaders need to be able to execute their strategy deliberately. But in a broader sense, the government is also enacting various other reforms that are pro-business to boost the value of Korean corporates. In the cumulative, the trajectory of reforms is encouraging.”

Which industry sectors are you paying attention to in the Korean market this year?

“One is chipmakers. We like chipmakers that trade at low valuations compared to global peers and ones that may benefit from a cyclical recovery in memory chip prices and demand seen ahead. We’re also paying attention to banks. Banks are among the likely beneficiaries of corporate reforms. All the main Korean banks still trade at a price-to-book ratio of less than 1, so foreign investors are taking notice.”

What is your outlook for the U.S. stock market this year?

“U.S. stock markets remain favorable. The U.S. continues to serve as the cornerstone of global markets, offering unmatched scale, liquidity, access to many of the world’s best and most resilient companies, and strong shareholder rights. For reference, the broad global equity market has a 64% allocation to U.S. equities based on current market capitalizations. The U.S. is by far the biggest country, with Japan — the second-largest — accounting for less than 5%, and Korea making up only about 1%. For investors allocating globally, they need to consider first and foremost the U.S.”

But aren’t there growing concerns about an economic slowdown in the U.S.?

“We see them more as short-term cyclical headwinds than structural weakness. U.S. GDP has risen by 50% in the past five years in nominal terms — an ‘economic boom’ — and it is therefore natural that it reverts to growing at a more sustainable, slower pace going forward. The protectionist policies pursued by the Trump administration have a slowing effect in the near term, but are not expected to change the general direction of travel for the U.S. economy.”

Based on your long experience in investment, what do you believe is the most important investment principle?

“Patience. If you hold a portfolio that is well-crafted and adequately diversified, the only thing standing between you and gains is time and focus. In our investment committee, we have to battle the ocean of news and changes — many of which are tempting to act on — but we are very selective about changes in direction. The longer you stay invested, the more the odds shift in your favor and the more you benefit from the compounding effect.”

Isn’t picking the right stocks also important?

“The real challenge isn’t to find the perfect moment to invest, or find the perfect stock to buy, but is to stay still in front of the innumerable market developments. Many investors lack this discipline: they tinker with their portfolio too often, chasing performance or reacting emotionally, and end up with poor returns as a result. Conversely, those who remain patient and committed to their strategy, even during periods of volatility, tend to come out ahead.”

In today’s volatile market, staying patient isn’t easy.

“I think it’s all about continuous learning. Confidence is the most important thing in investing. That’s why I constantly read books, listen to lectures, and recalculate again and again. I keep asking myself: ‘Why am I investing in this asset?’, ‘What’s the dividend yield?’, and ‘What’s the growth outlook for this sector and the demographic structure of this country?’ These questions help build philosophical conviction. There are two keys: first, zooming out to see the big picture through long-term historical facts and data; second, constantly recalculating your current position.”

What are you reading these days?

“I’m currently reading Trillion Dollar Coach: The Leadership Playbook of Silicon Valley’s Bill Campbell by Eric Schmidt, the former chairman of Google. It shows how Silicon Valley companies like Apple, Google, and Facebook work and succeed. What I recommend to Korean investors is Howard Marks’ first book, The Most Important Thing: Uncommon Sense for the Thoughtful Investor. This book is almost like a Bible on investing.”

TCK has won the WealthBriefingAsia Award for the best wealth manager in Asia for the second consecutive year. What’s behind this success?

“TCK started this journey more than 10 years ago when we first came to Korea with a mission to build the best multi-family office. Along the way, we never compromised on the key principles that drive our investment process — including investment geography, asset class selection, risk management, and fee structures. We executed our strategy with tireless attention to efficient operations, upholding strict standards at every step — from selecting expert managers to conducting performance reviews — always maintaining a consistent, data-driven approach aligned with our long-term goals.”

How have TCK’s recent returns been?

“Our flagship portfolio recorded a gain of more than 27% last year, and we reached a return of over 200% cumulatively since 2013. Our strong gains came as a result of our quality positioning. Many other investors were skeptical that the rally in global equities could continue in 2024 after a strong 2023, but we kept a large allocation to the leading U.S. stocks, and this strategy paid off.”

I understand TCK recently launched a new fund.

“Launched in February, the new fund offers a diversified portfolio of private assets, investing across non-traditional asset classes such as private equity, venture capital, and distressed debt. In order to capture the growth of promising private companies that are not listed on any stock market — like OpenAI and SpaceX — investors need exposure to private markets. But this is very difficult to do alone because there is a big information asymmetry. To overcome these challenges, our new fund is managed by TCK in partnership with a trusted U.S.-based manager that we have known for many years. It is designed to provide investors with indirect access to private market investment opportunities.”