Market collapse exposes cost of policy misjudgments

Korea's stock market has plummeted from record highs above 9,300 to the mid-5,000s in just four months, according to the latest market data. The KOSPI experienced successive crashes, including a 7.57 percent drop on October 15, following a 5.46 percent decline on October 13. The market turmoil has caused significant losses for investors and undermined confidence in the market, even as it briefly rebounded on October 16.

Despite the market's struggles, the administration of President Lee Jae Myung has struggled to provide satisfactory explanations for the policy decisions that may have contributed to the turmoil. Of particular concern are the actions of the National Pension Service (NPS), the country's largest institutional investor, and the government's apparent willingness to prioritize political objectives over investment discipline.

The NPS was established to protect the retirement security of millions of Koreans by managing contributions prudently, balancing returns against risk to ensure the fund can meet its long-term obligations. However, critics argue that the NPS has become an instrument for propping up stock prices, rather than fulfilling its core mission.

As countless households witness their savings vanish, the administration's failure to offer convincing answers about the policy misjudgments that may have exacerbated the market crisis has only deepened the public's skepticism.