Seoul:President Lee Jae Myung has reiterated his commitment to reforming the capital market, aiming to address the undervaluation of South Korean stocks. This pledge was made during a policy discussion at the Korea Exchange, where experts, corporate representatives, and government officials convened.
According to Yonhap News Agency, President Lee emphasized the government's unwavering policy direction to normalize the capital market and boost investor confidence. He described the undervaluation of South Korean stocks as an "unreasonable abnormality" and highlighted the need for institutional reforms to tackle market irregularities.
The president's remarks come in the wake of significant volatility in South Korea's stock market, with the Korea Composite Stock Price Index (KOSPI) trading in the mid-5,000-point range. This follows an all-time high of 9,114.55 points in late June. Lee stressed the importance of restoring investor confidence through comprehensive reforms.
In his address, President Lee also raised concerns about potential geopolitical crises and their impact on market trust. He mentioned ongoing government efforts to counter unfair trading practices and abuses by major shareholders. Additionally, he advocated for measures to facilitate mergers and acquisitions, describing them as crucial for addressing stock undervaluation.
President Lee proposed the establishment of a high-level body to oversee the reforms, underscoring the extensive work required to achieve a sound capital market.