Lee urges swift law change after KOSPI 5000

Jan 23, 2026, 07:57 am

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President Lee Jae-myung speaks during a senior presidential aides’ meeting at the presidential office on Jan. 22. / Yonhap

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Dealers celebrate as the KOSPI index breaks above the 5,000 mark for the first time intraday, at Woori Bank’s headquarters dealing room in central Seoul on Jan. 22. / Yonhap

President Lee Jae-myung on Jan. 22 called for the swift passage of a third revision to the Commercial Act, including mandatory cancellation of treasury shares, after the KOSPI index surpassed the 5,000 mark for the first time intraday.

Lee hosted a luncheon at the presidential office with lawmakers from the ruling Democratic Party of Korea’s “KOSPI 5000 Special Committee,” where participants agreed the bill “should not be delayed any further,” committee chair Oh Ki-hyung told reporters.

The proposed revision would require companies to cancel treasury shares within one year of acquisition. Firms that fail to do so—or that violate disclosed disposal plans—would face administrative fines of up to 50 million won for individual directors.

Although the committee introduced the bill in November with the aim of passage last year, it stalled as the National Assembly’s judiciary committee became clogged with contentious legislation. With most companies holding annual shareholders’ meetings in March, the party and government argue the bill must be enacted beforehand.

Since its launch on June 23 last year, the committee has already shepherded two rounds of changes: expanding directors’ fiduciary duties and mandating cumulative voting in director appointments.

While welcoming the achievement of the “KOSPI 5000” pledge, Lee and committee members agreed not to be complacent and to continue structural reforms to strengthen the capital market’s fundamentals.

Lee also voiced support for a proposed “anti–stock-price suppression” measure put forward by lawmakers Lee So-young and Kim Young-hwan, Oh said. Because inheritance and gift taxes are assessed based on share prices, the bill aims to deter attempts to depress prices to lower tax liabilities—moves that can harm minority shareholders.

Participants further discussed taking a tougher stance on “dual listings,” where subsidiaries created through spin-offs later go public, potentially diluting existing shareholders’ value.

At a New Year’s press conference a day earlier, Lee stressed that normalizing—not artificially inflating—stock prices is key, warning that market manipulation would bring severe consequences.

The presidential office said it had “no special comment” on the KOSPI milestone, adding that it viewed the achievement with measured calm.

#Lee Jae-myung #KOSPI 5000 #Commercial Act amendment #treasury share cancellation #capital market reform