Lee backs stock reform to boost markets

Feb 27, 2026, 07:29 am

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President Lee Jae-myung speaks during a senior secretaries’ meeting at the presidential office on Feb. 26. / Yonhap

President Lee Jae-myung on Wednesday said additional institutional reforms, including a proposed “stock price suppression prevention law,” would further accelerate the normalization of South Korea’s capital markets and help the country move from a “Korea discount” to a “Korea premium.”

Speaking at a senior secretaries’ meeting at Cheong Wa Dae, Lee stressed that the government’s role is not only to correct long-standing structural distortions but also to elevate the country’s overall valuation in global markets.

“We must go beyond normalization and move from the ‘Korea discount,’ where we are undervalued compared to other countries, to a ‘Korea premium,’ where we are more highly assessed than any other nation,” Lee said.

He referenced the National Assembly’s passage of a third amendment to the Commercial Act the previous day, which mandates the cancellation of treasury shares, and added, “If additional reforms such as the ‘stock price suppression prevention law’ are backed up, this flow of normalization will grow even stronger.”

Lee’s remarks came as the benchmark KOSPI index closed above the 6,000 mark for the first time, while previously surging housing prices in the Seoul metropolitan area have recently shown signs of cooling.

“Although we cannot yet say that national normalization has been fully achieved, what once seemed impossible — the normalization of the capital market — is becoming reality,” Lee said. “Dismantling the ruinous real estate republic is also not an insurmountable wall.”

He pointed to declining home prices in Seoul, a noticeable increase in property listings and slowing rent increases, calling for an accelerated transition toward “productive finance.”

The president also instructed officials to review stronger economic sanctions against fraudulent recipients of government subsidies.

“We must not only fully recover illegally received subsidies but also consider imposing financial penalties several times the amount,” Lee said. “We need thorough measures so that anyone who steals taxpayers’ money clearly understands that they will face ruin.”

Lee’s comments signal a continued push for structural reforms in capital markets and real estate, alongside stricter oversight of public funds.

#Lee Jae-myung #Korea discount #Korea premium #stock price suppression law #Commercial Act amendment