Lee Jae-myung, a presidential primary candidate of the Democratic Party of Korea, has pledged to drive the stock index to the 5,000 mark by re-pushing the amendment of the Commercial Act to resolve the “Korea discount.”
The candidate stated on social media today (21st), “Revitalizing Korea’s stock market is the easiest and quickest path to healthy asset growth for the public,” emphasizing the need to transform the current reality where most citizens’ assets are in real estate.
He further suggested ways to invigorate the stock market, stating that “we need to make the capital market an attractive investment destination to allow trust and investment in innovative companies.”
Lee promised that “the government will first present a clear mid- and long-term roadmap for economic and industrial growth.”
He criticized the lack of specificity and feasibility in the economic policy directions announced by the government, which were often short-term measures inadequate to bring fundamental changes to the stock market. By proposing the industries, scale, and methods that the government will concentrate on investing in, he aims to add predictability and stability to private investment strategies.
Additionally, he vowed to “establish a fair market order.”
Lee proposed strong responses to unfair practices like stock price manipulation and pledged to introduce a “one-strike-out” system, barring anyone involved in stock manipulation from re-entering the market.
He also mentioned strict measures against unfair practices using undisclosed information by executives and major shareholders, reinforcement of short-term capital gain recovery, and enhancement of pre-monitoring and severe punishment systems for stock price manipulation and other unfair trades.
Lee reiterated his intention to re-push amendments to the Commercial Act that expands directors’ duties of diligence from companies to shareholders.
He emphasized enhancing the transparency of corporate governance and re-pursuing the amendment to the Commercial Act to protect shareholder interests.
Lee proposed initiatives such as revitalizing the cumulative voting system, gradually expanding the separate election of auditors, strengthening safeguards for general shareholders, and allocating new shares preferentially to parent company general shareholders in cases of “split-off listings.”
He also promised to dramatically improve the foreign investment environment by resolving repetitive threats from North Korea’s nuclear and missile actions through strategic, practical diplomacy, thus easing geopolitical security risks.
Furthermore, he mentioned preparing a concrete roadmap for inclusion in the MSCI Emerging Markets Index and undertaking institutional improvements to alleviate inconveniences for foreign investors.
Lee concluded by stating that he aims to “end the ‘Korea Discount’ and usher in the ‘Korea Premium’ era,” ensuring the stock market operates transparently, companies receive fair evaluations, and investor interests are robustly protected.