What's next after Korea's market rally?

Korea's stock market has experienced significant gains recently, but sustaining this momentum presents a challenge. Global investors attending Korea Premium Week 2026 emphasized that turning this rally into a lasting re-rating requires major reforms in corporate governance, shareholder returns, and taxation, as well as maintaining consistent and transparent market rules.

Frank Carroll, managing director at Oaktree Capital, cautioned against abrupt regulatory interventions during market volatility, stressing that policy consistency is essential to preserving foreign investor confidence.

Carroll pointed out that a market correction is inevitable, most likely prompted by the United States. He advised investors not to panic when such a correction occurs, urging them to remain patient and steadfast. He cited Korea's past experience with short-selling bans as an illustration of interventions that can erode market confidence. Carroll firmly opposed such bans, asserting that short sellers and those selling stocks during downturns are integral parts of an open and free market.

Carroll urged policymakers to focus on consistency and transparency in market regulations to ensure the market's long-term stability and attractiveness to international investors.