President Lee Receives Briefing from Financial Services Commission and Fair Trade Commission on the 19th
KOSDAQ Rises Only 30% While KOSPI Climbs 70%
Lee: "Distrust in Stock Market Transparency Is the Cause"
President Lee Jae-myung is asking a question to Lee Ok-won, Chairman of the Financial Services Commission, during the Financial Services Commission and Fair Trade Commission briefing held at the Seoul Government Complex Annex on the 19th. Photo by Yonhap News
On the 19th, President Lee Jaemyung addressed the undervaluation of the domestic stock market, stating, "The biggest reason is a lack of trust in market transparency," and emphasized, "We must make it clear that those who engage in stock price manipulation or unfair trading in the Korean market will face severe consequences." He stressed the need to "thoroughly root out and completely block stock manipulation groups."
President Lee gave these instructions while receiving a work report from the Financial Services Commission at the Seoul Government Complex in Jongno-gu, Seoul, on this day. He noted, "The capabilities of our companies are not bad, but when they are listed on our stock market, they are valued at only about 60%," and pointed out, "Although there has been significant improvement, objective figures still show that the market is undervalued." He further analyzed, "Fundamentally, distrust in the stock market is even affecting the foreign exchange market."
President Lee also pointed out that the growth rate of the KOSDAQ market has been sluggish compared to the KOSPI market. After hearing a report that the KOSPI rose by 60 to 70% this year while the KOSDAQ increased by only about 30%, he responded, "Does that mean it rose only half as much?" He continued, "Isn't there a lack of trust in the KOSDAQ market?" and added, "The core issue is the perception that it is unstable and that any time, a stock could become a penny stock."
Additionally, President Lee remarked, "Once a company enters the market here, it is rarely delisted," and criticized, "With so many listed companies, it is difficult for new, promising stocks to grow." In response to a report that about 40 delistings were decided in the latter half of this year, resulting in lawsuits from shareholders, he commented, "It was unavoidable," and added, "Still, we must proceed with restructuring to pave the way for market normalization."
Regarding the Financial Services Commission's explanation that the stock manipulation response team consists of 37 members, he said, "That is far too few," and suggested, "Why not create one or two more teams and have them compete?" He emphasized, "We must thoroughly eliminate stock manipulation groups so they cannot even dream of acting, and early response is crucial," and urged, "Rather than just catching existing offenders, we must fundamentally block them from operating."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
