What reforms did President Lee Jae Myung pledge to address the undervaluation of Korean stocks?

Lee said his government would pursue institutional reforms, strengthen investor confidence and crack down on market irregularities. He also cited efforts to address unfair trading practices and abuses by major shareholders.

Why did Lee Jae Myung say restoring investor confidence is important to South Korea’s capital market?

Lee called investor confidence the most important value for ensuring a sound capital market. He cited concerns about a possible geopolitical crisis involving an exchange of gunfire along the ceasefire line and said removing such worries would be important to restoring trust.

How has the KOSPI moved in recent months, according to Lee’s remarks?

The KOSPI was in the mid-5,000-point range on Friday, following significant volatility in recent months. It had reached an all-time closing high of 9,114.55 points in late June.

Lee pledges capital market reform to address stock undervaluation

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Summary

President Lee Jae Myung reiterated his commitment to capital market reform at a policy discussion at the Korea Exchange on Friday, pledging to address the undervaluation of Korean stocks by restoring investor confidence and cracking down on market irregularities. He called investor confidence essential to a sound capital market and said institutional reforms and enforcement would help rebuild trust. Lee said the government had introduced reforms targeting unfair trading and abuses by major shareholders but still had more work to do.

Key Facts

The KOSPI was trading in the mid-5,000-point range on Friday after reaching a record closing high of 9,114.55 points in late June.
Lee described the undervaluation of Korean stocks as an unreasonable abnormality.
Lee said the government was responding to unfair practices, including stock price manipulation, at the pan-government level.
Lee said he had instructed an investigative body to crack down on irregularities in financial and capital markets.

By Yonhap

Published Nov 13, 2026 11:54 am KST

President Lee Jae Myung speaks during a policy discussion on the capital market held at the Korea Exchange in Seoul, Friday. Yonhap

President Lee Jae Myung on Friday reiterated his commitment to capital market reform, pledging to address what he has called "undervaluation" of Korean stocks by boosting market confidence and cracking down on market irregularities.

Lee made the pledge during a policy discussion on the capital market held at the Korea Exchange, which brought together experts, corporate representatives and government officials.

"Normalizing the capital market is our government's unwavering policy direction and commitment," the president said.

The president described the undervaluation of Korean stocks as an "unreasonable abnormality," reaffirming his administration's commitment to reforming the capital market and the broader financial market to boost investor confidence.

Lee's remarks came amid significant volatility in Korea's stock market in recent months, with the benchmark Korea Composite Stock Price Index (KOSPI) trading in the mid-5,000-point range on Friday, after reaching an all-time closing high of 9,114.55 points in late June.

The president cited investor confidence as the most important value in ensuring a sound capital market, vowing to restore it through institutional reforms and efforts to tackle market irregularities.

"There are concerns such as 'Could another geopolitical crisis erupt, with an exchange of gunfire along the ceasefire line?'" Lee said. "Removing such worries ... and ultimately restoring trust would be most important."

The president noted the government has introduced institutional reforms to address unfair trading practices and abuses by major shareholders, but that the country still has a long way to go.

"The government is sternly responding to unfair practices, such as stock price manipulation, at the pan-government level," he said, adding that he has instructed an investigative body to sternly crack down on such irregularities in the financial and capital markets.

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