“While I think the chances of serious unrest in North Korea are pretty slim, there could be small noises sporadically during the succession process, which should present bargain- hunting opportunities,” Kim said.

“South Korea has already been trading at a discount to other peers in part because of geopolitical risks,” Oh Sung Sik, chief investment officer for equities at Franklin Templeton, said. “If the market extends losses only because of Kim Jong Il’s death, that will present a buying opportunity and I would feel like adding more.”

iShares MSCI South Korea

For more information on South Korea, visit our South Korea category.

Max Chen contributed to this article.