Launch of Korea Exchange under Jeong Eun-bo, Anticipation for Efforts to Resolve Korea Discount

Exchange to Hold Extraordinary General Meeting on 14th to Appoint Chairman
Expectations for Efforts to Resolve Korea Discount Including Corporate Value-Up Program

Jung Eun-bo, New Chairman of the Exchange

The Korea Exchange under the leadership of Jeong Eun-bo has set sail. With the government strongly driving efforts to resolve the Korea Discount (the undervaluation of the Korean stock market), attention is focused on the actions of Chairman Jeong, who has taken charge of the exchange.

According to the Korea Exchange on the 15th, Chairman Jeong held an inauguration ceremony at the Busan headquarters and officially began his duties. The day before, the exchange held its 1st extraordinary general meeting of shareholders at its Seoul office and appointed Jeong, former Financial Supervisory Service Governor, as the 8th Chairman.

Earlier, the exchange convened a nomination committee last month and unanimously recommended Chairman Jeong as the final candidate for the next chairman. On the 24th of last month, the board of directors resolved to submit Jeong’s appointment proposal to the general meeting.

Born in 1961 in Cheongsong, Gyeongbuk, Chairman Jeong graduated from Seoul National University with a degree in Business Administration. He passed the 28th Administrative Examination in 1984 and began his public service career. Starting at the Ministry of Government Administration and Home Affairs, he served as Director of International Financial Policy at the Ministry of Strategy and Finance, Secretary-General of the Financial Services Commission, and Deputy Minister at the Ministry of Strategy and Finance. He was Vice Chairman of the Financial Services Commission in 2016 and Governor of the Financial Supervisory Service in 2021. Chairman Jeong is known as an economic bureaucrat specializing in macro and international finance, and during his tenure as Vice Chairman of the Financial Services Commission, he also served as Chairman of the Securities and Futures Commission, demonstrating a deep understanding of the capital market.

The immediate task for Chairman Jeong, now leading the exchange, is the corporate value-up program. The government is strongly pushing to resolve the Korea Discount and plans to release detailed plans for the corporate value-up program within this month. The exchange is devising various measures to support listed companies’ efforts to enhance corporate value in line with government policy. These include comparative disclosures of key investment indicators by market capitalization and industry, recommendations for listed companies to announce corporate value improvement plans, development of a 'Korea Premium Index' (tentative name) composed of companies excelling in corporate value improvement, and the introduction of exchange-traded funds (ETFs) tracking this index. It is expected that the exchange will accelerate the preparation of detailed plans in consultation with financial authorities.

In addition, there are numerous pressing issues at the exchange, such as improving short selling, eradicating unfair trading practices like stock price manipulation, launching an Alternative Trading System (ATS), and token securities (STO) business. Market interest is focused on how Chairman Jeong will address these challenges. Since November last year, the government has temporarily banned short selling entirely and is preparing measures to eradicate illegal short selling. In particular, the exchange is considering building a computerized system to prevent illegal short selling. Furthermore, with the ATS launch scheduled for next year, the exchange must establish a market operation system this year to ensure stable operation of the capital market under a multi-market structure. A financial investment industry official said, "Given his experience as Chairman of the Securities and Futures Commission and Governor of the Financial Supervisory Service, we expect him to effectively resolve major capital market issues," adding, "Especially since he showed a market-friendly approach during his time at the Financial Supervisory Service, we anticipate he will also strengthen communication with the industry."