Lee says S. Korean capital market undervalued; urges measures to boost competitiveness

President Lee Jae Myung stated on Thursday that South Korea's capital market remains undervalued and calls for measures to improve its global competitiveness to attract long-term investments. The comment came during a meeting with key aides at Cheong Wa Dae in Seoul, as the country's stock market has seen significant volatility in recent months.

The benchmark Korea Composite Stock Price Index (KOSPI) has fallen from its all-time closing high of 9,114.55 points in late June to 5,342.73 points on Thursday, leaving investors uncertain. Lee explained that South Korea's capital market has been affected by external uncertainties, but given the country's economic fundamentals and corporate competitiveness, the market is still a promising investment destination that is undervalued.

He emphasized the importance of creating an environment where the capital market receives its fair valuation, enabling its healthy development to lead to increased household wealth and improved living standards for the public. Lee directed his key aides to intensify efforts to enhance the local capital market's global competitiveness and transform it into an advanced market.

This involves improving corporate valuations, boosting shareholder returns, and attracting long-term investments. The president noted that a more substantial economic leap forward is achievable if the capital market spearheads economic development by supporting corporate innovation and investment, which in turn would strengthen the capital market.