Using an event study method of OLS and GARCH market models, we find evidence that on the Korean stock market, foreign asset divestitures lead to a decrement in firm value around the announcement date. The firm value decreased by the event announcements is significantly associated with the divestitures-characteristic variables. Interestingly, the divestiture announcements by firms with substantial institutional investors holding advanced professionalism for investment contribute to an increment in firm value but those by firms with many individual investors lead to a decrement in that. Given that the intent of firms’ divestitures is for retrieving money invested, the event announcements are related to an increment in firm value. In addition, the divestiture announcements of assets invested in developing host countries make a negative impact on firm value whereas those of assets invested in advanced host countries are related to a decrement in it. Unlike the case of firms in advanced countries, our differentiated finding that the divestiture announcements produce a decrement in firm value around the announcement date sheds new light on market valuation of foreign asset divestitures of firms in developing countries. Thus, this would provide firm managers, investors, and academic researchers with invaluable implications of the importance of more prudent decisions for effective foreign asset divestitures of firms based in emerging economies.