President Lee Hosts 'Korea IR' at the New York Stock Exchange
"Will Decisively Improve Korea's Geopolitical Risks"
Pledges to Address Major Issues in Offshore FX Transactions for Foreign Investors... Comprehensive Roadmap to Be Announced Within the
On the 25th (local time), President Lee Jaemyung met with major Wall Street investors and pledged to decisively resolve geopolitical risks on the Korean Peninsula and to swiftly address the issue of the offshore foreign exchange market for Korea's inclusion in the Morgan Stanley Capital International (MSCI) Developed Markets Index. He also stated that, following the first and second amendments to the Commercial Act, the third amendment-centered on the cancellation of treasury shares-would be enacted, and that all necessary systems would be introduced without exception to rapidly transform Korea's investment environment.
After presiding over the opening bell ceremony at the New York Stock Exchange (NYSE) that morning, President Lee participated in the "Korea Economic Briefing (IR) Investment Summit" and said, "Although this is a period of chaos as a new economic order is being established, I believe it also presents new opportunities. The U.S. market is reaching all-time highs, and the Korean market is also hitting record highs, but due to several factors, it remains undervalued," he said.
Lee: "All Necessary Systems Will Be Introduced Without Exception"
President Lee Jae-myung waves his hand after pressing the button to signal the opening at the New York Stock Exchange in the United States on the 25th (local time). Photo by Yonhap News
President Lee publicly pointed out that the price-to-book ratio (PBR) of the Korean stock market does not reach "1," and that the price-to-earnings ratio (PER) is lower than those of underdeveloped countries. He cited the following reasons: ▲geopolitical risks on the Korean Peninsula, ▲unfairness and lack of transparency in corporate management, ▲market unfairness, and ▲political instability. He also acknowledged that foreign investors have faced obstacles when investing in the Korean market.
He emphasized that policies to resolve undervaluation would be continuously pursued. First, he warned that acts disrupting the market, such as stock price manipulation, would be severely punished. Introducing his own words, "Anyone who manipulates stock prices will be ruined," President Lee asserted, "The joint capital market investigation team is working diligently. We will create a market where opaque and unfair transactions are not even conceivable, let alone attempted."
He also expressed his determination to push for the third amendment to the Commercial Act. This is to rationalize the unreasonable decision-making structures of corporations. After briefly summarizing the contents of the first and second amendments, President Lee said, "We are working on the third amendment to the Commercial Act. There is resistance, but it will be implemented in practice," adding, "We will reform the tax system to enable greater dividends, and introduce all necessary systems without exception, such as preventing the selfish abuse of treasury shares for management control."
Lee: "Improving Inter-Korean Military Tensions, Expanding Government Role in Industrial Policy"
He also pledged to decisively improve Korea's geopolitical risks. He stressed that, even without the presence of U.S. Forces Korea, the country possesses the world's fifth-largest military power, and that its annual defense budget is 1.4 times North Korea's gross domestic product (GDP), thus dispelling security concerns. President Lee stated, "The instability caused by inter-Korean military confrontation will be greatly improved," and added, "We plan to significantly increase our own defense spending to strengthen our independent defense capability."
Regarding industrial and economic policy, he said, "We plan to dramatically expand the government's role through expansionary fiscal policy," and predicted, "We are clearly indicating the direction in which the Korean economy and society will move, and it will be realized in practice."
On Korea's failure to be included in the MSCI Index, he said, "It is very regrettable." President Lee explained, "It is due to our lack of preparation, and I heard the key issue is the offshore foreign exchange market," adding, "We plan to resolve this very quickly." After confirming the presence of a Morgan Stanley representative, President Lee said, "I especially wanted to meet you," and "I look forward to your support."
Wall Street Resonates with President Lee's Policy 'Sales'... Attendees Say "It Will Contribute to Strengthening Trust"
Key figures from the economic and financial sectors of both countries who attended the event evaluated that the amendments to the Commercial Act for improving corporate governance, and the efforts to reform the foreign exchange market-such as extending market operating hours-align with global standards and will help strengthen investor confidence in the Korean market. They also noted that Korea is an attractive investment destination with outstanding competitiveness in semiconductors and shipbuilding, is a key hub in the global supply chain, and holds a leading position in advanced industries such as artificial intelligence (AI). In particular, attendees viewed the government's announcement of an AI transformation and expanded research and development (R&D) budget positively, saying Korea's exceptional innovation capacity and semiconductor advantage will play a major role in leading future AI trends.
Henry Fernandez, Chairman of MSCI, also attended the event in person and discussed Korea's capital market activation policies and foreign exchange market reform measures. President Lee introduced plans to establish a "comprehensive roadmap for Korea's inclusion in the MSCI Developed Markets Index," emphasizing Korea's strong determination to advance to developed market status. The government plans to announce the comprehensive roadmap within this year and resolve inconveniences for foreigners trading Korean won by ▲opening the domestic foreign exchange market 24 hours a day and ▲establishing an offshore won settlement system.
In his closing remarks, President Lee diagnosed that the backdrop to the recent increase in global division and conflict is the issue of polarization, and stressed that creating new growth opportunities and sharing the fruits fairly is very important and a top priority for the Korean government. He also said that, just as K-Culture is now a global trend, Korea has outstanding cultural capabilities and high growth potential, and that the government will continue to actively support and invest in cultural development.
First Investment Briefing by a Korean President at the New York Stock Exchange
President Lee Jae-myung is speaking at the Korea Economic Briefing Investment Summit held at the New York Stock Exchange in the United States on the 25th (local time). Photo by Yonhap News
This is the first time a Korean president has held an investment briefing at the New York Stock Exchange. It has been about 17 years since a Korean president visited the exchange, the last being former President Lee Myungbak in April 2008. Counting all previous presidents, only three have visited: former President Kim Daejung in June 1998, former President Roh Moo-hyun in May 2003, and former President Lee Myungbak in 2008. However, former President Moon Jae-in held a luncheon with financial and economic leaders at a hotel in New York in September 2017.
This event was attended by 20 top executives from major global financial institutions on Wall Street. Attendees included Jane Fraser, CEO of Citigroup since 2021; Emmanuel Roman, CEO of PIMCO, the world's largest bond investment firm; Mary Erdoes, CEO of JP Morgan; Marc Nachmann, President of Goldman Sachs; and Joseph Bae, CEO of KKR. From the government, Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol, Financial Services Commission Chairman Lee Eokwon, Financial Supervisory Service Governor Lee Chanjin, and Korea Exchange Chairman Jung Eunbo were present. CEOs of domestic financial companies, including Jin Okdong, Chairman of Shinhan Financial Group, Ham Youngjoo, Chairman of Hana Financial Group, and Kim Namgoo, Chairman of Korea Investment Holdings, also attended.
Kim Yongbeom, Policy Chief at the Presidential Office, explained the background for holding the Korea Investment Summit: "Taking the opportunity of President Lee's visit to New York for the United Nations (UN) meeting, it was decided that direct communication with opinion leaders of the global financial market would not only help them understand the new government's policies but also be effective in overcoming Korea's chronic undervaluation."
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