Lee says Korean capital market undervalued, urges measures to boost competitiveness
Summary
President Lee Jae Myung called for measures to improve Korea’s capital market competitiveness at a meeting with key aides in Seoul on Thursday, as the market faced volatility. He said the market remained undervalued despite Korea’s economic fundamentals and corporate competitiveness. Lee urged efforts to improve corporate valuations and shareholder returns and attract long-term investment. He said a stronger capital market could support corporate innovation and investment and contribute to economic development.
Key Facts
- The KOSPI reached a closing record of 9,114.55 points in late June before closing at 5,342.73 on Thursday.
- Lee said recent external uncertainties had significantly affected Korea’s capital market.
- He called for an environment in which the market receives fair valuation and its sound development increases household wealth and improves public livelihoods.
- Lee instructed his aides to develop the market into an advanced market with greater global competitiveness.
President Lee Jae Myung, right, pledges allegiance to the national flag during a meeting with his key aides at Cheong Wa Dae in Seoul, Thursday. Yonhap
President Lee Jae Myung said Thursday that Korea's capital market remains undervalued, calling for measures to boost its global competitiveness and attract long-term investments.
The president made the remarks at a meeting with his key aides at Cheong Wa Dae in Seoul, as Korea's stock market has experienced significant volatility in recent months.
After reaching an all-time closing high of 9,114.55 points in late June, the benchmark Korea Composite Stock Price Index (KOSPI) closed at 5,342.73 points on Thursday, leaving many investors on edge.
The president said the country's capital market has been significantly affected by recent external uncertainties.
Given the country's economic fundamentals and corporate competitiveness, Korea's capital market "is an attractive investment destination that still remains undervalued," Lee told the meeting.
He said government efforts should be focused on creating an environment in which the capital market receives its fair valuation, allowing its sound development to translate into increased household wealth and improved livelihoods for the public.
The president instructed his key aides to step up efforts to enhance the local capital market's global competitiveness and develop it into an advanced market, specifically calling for measures to improve corporate valuations and shareholder returns, as well as attract long-term investments.
"A greater economic leap forward would be possible if the capital market spearheads economic development by supporting corporate innovation and investment, which, in turn, would help strengthen the capital market," the president noted.
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