Examining Capital Market Pledges
Lee: "KOSPI 5000," Kim: "Breaking Out of Boxpi"
Clear Differences on Commercial Act Amendments
"We will usher in the era of a 5,000-point stock index." "We will break out of the 'Boxpi' range."
Lee Jae Myung, the Democratic Party candidate, and Kim Moonsoo, the People Power Party candidate, both running in the June 3 presidential election, are voicing their commitment to boosting the stock market. This is an effort to win the support of 14 million retail investors. However, regarding the recent key issue of amending the Commercial Act, Lee has expressed his intention to push for it again, while Kim supports the government's revised proposal, highlighting a clear difference in their positions.
Lee Jae Myung, the Democratic Party presidential candidate, raises his hand to greet voters at the "Revolution of Light" rally held at Cheonggye Plaza in Seoul on the 12th, marking the official start of the 21st presidential election campaign. 2025.5.12 Photo by Kim Hyun Min
According to the National Election Commission on the 14th, Lee Jae Myung presented his vision for revitalizing the stock market in the third pledge of his recently submitted list of ten major campaign promises, titled "We will boost the vitality of households and small business owners and realize a fair economy."
Specifically, Lee promised to restructure the stock market and strengthen shareholder returns according to the characteristics of listed companies. He also pledged to revise regulations to attract more foreign investors and to actively pursue inclusion in the Morgan Stanley Capital International (MSCI) Developed Markets Index.
In particular, Lee plans to protect the rights and interests of ordinary shareholders by improving corporate governance, including introducing a statutory duty of loyalty for directors under the Commercial Act. He emphasized eradicating controlling shareholders' pursuit of private interests through the misuse of capital and profit-loss transactions, as well as eliminating "eat-and-run" schemes and market manipulation to create a fair market order.
The so-called "one-strike-out" rule is also included, which would permanently ban anyone involved in stock price manipulation from re-entering the stock market, even after a single offense. Other pledges include: ▲ expanding the separate election of audit committee members and strengthening management oversight functions ▲ ensuring fair valuation of corporate value during mergers ▲ giving priority allocation of new shares to ordinary shareholders of parent companies in the case of "split-off listings" ▲ and, in principle, requiring listed companies to cancel treasury shares.
In his "Stock Market Revitalization Policy Statement" posted on Facebook last month, Lee also stated, "We will resolve the 'Korea Discount' through recovery and growth, ushering in the era of a 5,000-point stock index," and emphasized, "We will push again for amendments to the Commercial Act to protect shareholder interests. We will also promote cumulative voting to ensure that directors representing minority shareholders can be appointed."
Kim Moonsoo, the People Power Party presidential candidate, is campaigning at Jagalchi Market in Busan on the 13th. 2025.5.13 [Joint Coverage] Yonhap News Agency
Kim Moonsoo also unveiled his vision for the stock market through the fifth pledge of his ten major campaign promises, "Asset Growth for the Middle Class, a Land of Opportunity." He plans to implement tax reforms, such as providing tax benefits to long-term stockholders or fund investors.He will separate the taxation of dividend income, and the annual contribution and tax-free limits for Individual Savings Accounts (ISA) will be raised to 40 million won and 10 million won, respectively.
Last month, when he announced his "K-Capital Market Advancement Pledge to Escape the Long-Term Boxpi," Kim also stated that, as president, he would personally conduct investor relations (IR) activities targeting foreign investors. In addition, he proposed making dividend income tax-free up to 50 million won, with income above that amount subject to a 20% separate tax. For economic crimes such as stock price manipulation, he plans to strengthen punishments up to life imprisonment and introduce a punitive damages system.
However, regarding the revised Commercial Act, which the government vetoed after it passed the National Assembly, Kim supports the current government's position of pursuing amendments to the Capital Markets Act as an alternative. Instead of amending the Commercial Act to cover unlisted small and medium-sized enterprises, he plans to significantly strengthen shareholder protection obligations and enhance the expertise of outside directors for listed companies only, thereby improving corporate governance.
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