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President Lee Jae-myung speaks during a roundtable on eliminating unfair trading in the stock market, held at the Korea Exchange in Yeongdeungpo, Seoul, on June 11. / Source: Yonhap News

President Lee Jae-myung on June 11 declared a tough stance against unfair practices in South Korea’s stock market, vowing to implement a “one-strike-out” policy for stock manipulation and to elevate the stock market to a status comparable to real estate as a reliable investment vehicle.

Speaking at a roundtable on cracking down on unfair stock trading held at the Korea Exchange in Yeongdeungpo, Seoul, President Lee said, “We will make it absolutely clear that anyone playing games in Korea’s stock market will be financially ruined.”

This marks the first time since taking office that President Lee has attended an external public event outside of his usual schedule.

He stressed the need to overhaul the market’s opacity, singling out "collusive trading" — where stock prices are manipulated using fake information — as the first target for regulation.

"Under the Lee Jae-myung administration, no one will be allowed to profit through illegal means. And if they do, they’ll have to pay back multiple times the gains and face severe punishment," he warned.

Lee criticized the recent trend of shareholder value being eroded through corporate actions like spin-offs and mergers. “One day you hold shares in a solid blue-chip company, and the next, it’s just a hollow shell,” he said.

He also pointed out South Korea’s low dividend distribution, even compared to China. “We’re preparing tax and institutional reforms to encourage higher dividends,” he added.

Referring to legislation proposed by Democratic Party lawmaker Lee So-young to apply a separate tax rate for dividends from listed companies with a payout ratio above 35%, President Lee said, “We’ll explore various approaches to support generous dividend policies.”

He concluded by stressing the importance of the securities market in revitalizing the national economy. “If we make stock investments a viable alternative to real estate — with interim dividends that support household income — companies will find it easier to raise capital, and the entire economy can benefit from this virtuous cycle. The stock market is at the heart of that cycle.”