U.S. investor sees political turmoil in South Korea as investment opportunities.

• Causeway Capital Management's portfolio manager, Arjun Jayaraman, stated that the risks associated with the South Korean stock market are now reflected in its pricing.
• He maintained his overweight position because the value was certainly compelling, as he stated on CNBC's "Squawk Box Asia" last week.
• After Yoon imposed martial law on Dec. 3, the South Korean stock market index dropped by approximately 5.5%. However, it later regained most of its losses.

According to fund manager Arjun Jayaraman, the recent political turmoil in South Korea is likely to be temporary, and there are investment opportunities in the country.

The portfolio manager at Causeway Capital Management stated that the risks associated with the South Korean stock market have been factored in, after President Yoon Suk Yeol's failed attempt to impose martial law in early December and his subsequent impeachment on Saturday.

"Jayaraman stated on "Squawk Box Asia" last week that Korea is a cheap market, priced in negativity, but the value is compelling, so they maintain their overweight position."

Yoon aimed to enhance the performance of listed companies and increase shareholder returns through the "Corporate Value Up" program, a Japanese initiative that focuses on improving corporate governance and boosting investor engagement.

To address the "Korea discount," which refers to South Korean securities trading at lower valuations compared to regional peers due to investor concerns about corporate governance at large family-owned conglomerates, reforms were introduced.

Any new South Korean government is likely to continue pushing these reforms, thereby enhancing returns, as stated by Jayaraman.

The fact that even the more liberal Democratic [opposition party] supports the Value Up initiative in Korea could lead to a re-rating of the market over the medium to long term, according to him.

Yoon's martial law order was an act of insurrection, according to South Korea opposition leaders, a claim denied by Yoon, who accused political rivals of creating "false incitement" to bring him down.

The South Korean stock market index dropped by approximately 5.5% following the imposition of martial law, but later regained most of its losses.

Stock call

One of Causeway Capital Management's largest active holdings is South Korean car manufacturer Kia, which has been relatively insulated from the domestic tussle, according to Jayaraman.

""Kia is more exposed to export markets in the West, including the US, and will benefit from continued weakness in the Korean won compared to its competitors in Japan," he stated."

After Yoon imposed martial law, the South Korean won has fallen to a more-than-two-year low against the U.S. dollar.