The key facts

  • Lee Jae-myung stated that restoring investor confidence and capital market reforms are a priority
  • KOSPI was trading in the mid-5,000-point range after a record close of 9,114.55 in late June
  • The president ordered an intensified nationwide fight against stock price manipulation

Promises against the backdrop of a falling market

South Korean President Lee Jae-myung on Friday reaffirmed the course toward capital market reform, speaking at a policy discussion at the Korea Exchange in the presence of experts, company representatives, and officials. According to him, restoring investor confidence remains a priority of the administration. 'Normalizing the capital market is an unchanging direction of policy and a commitment of our government,' the Yonhap agency quoted him as saying.

Stock undervaluation and volatility

Lee called the undervaluation of South Korean stocks an 'unjustifiable anomaly' and promised institutional reforms to strengthen market confidence. His remarks came amid volatility: the KOSPI index traded in the mid-5,000-point range on Friday, while a record close of 9,114.55 was reportedly recorded in late June. The president also cited geopolitical tension, including the possibility of armed clashes along the border between the two Koreas, among the factors undermining investor confidence. 'Eliminating such concerns... and ultimately restoring confidence would be most important,' he said.

Fighting unfair practices

The president acknowledged that existing reforms aimed against unfair trading and abuses by major shareholders remain insufficient. According to him, the government is 'responding harshly at the nationwide level' to unfair practices such as stock price manipulation, and investigators have been instructed to strengthen enforcement.