South Korea hopes to mirror Japan's efforts to boost the value of its companies as the neighbor's stock market surges to a record high, with measures Seoul hopes will narrow a "Korea discount" on stock prices.

But while years of effort at pushing Japanese companies to be more responsive to shareholders have helped lift Tokyo shares above their 1989 bubble-era peak, the reforms floated last month by South Korean President Yoon Suk-yeol may not continue to boost the Seoul bourse, analysts say.

The benchmark KOSPI index hit a more than 20-month high this week on optimism over the Corporate Value-up Program, to be announced on Monday, but some market participants are bracing for investors to take profits next week. They suspect gains may not continue beyond national elections in April.