Korea Exchange Chairman Jung Eunbo Holds Press Briefing on the 5th
Still Undervalued Compared with Overseas Markets, KOSPI 6,000 Fully Achievable
"Delisting of Insolvent Listed Companies from the Market Will Accelerate"
"Delisting Criteria to Be Continuously Tightened and Organizations Reinforced"
"Productive Finance Policies Will Also Move Forward Quickly"
Jeong Eunbo, chairman of Korea Exchange, held a New Year press briefing at the Korea Exchange in Yeouido, Seoul on the afternoon of the 5th and announced "Korea Exchange's Core Strategy for a Great Leap Forward in the Capital Market." Korea Exchange
Jung Eunbo, chairman of the Korea Exchange, assessed that reaching 6,000 points on the KOSPI is fully achievable. He also stated that efforts to weed out zombie companies will be accelerated.
Still undervalued compared with overseas markets, KOSPI 6,000 is fully achievable
On the afternoon of the 5th, Jung held a New Year's press briefing at the Korea Exchange in Yeouido, Seoul, and announced the "Core Strategies of the Exchange for a Major Leap in the Capital Market."
Jung said, "Compared with major overseas markets, I believe the KOSPI already has the capacity to rise to at least 6,000." He explained, "The price-to-book ratio (PBR) of the KOSPI and KOSDAQ markets is around 1.9 times, which is somewhat similar to Japan, while the United Kingdom, France, and Germany are around 2.3 times, and the United States is above 5 times."
He continued, "If the stock price level surpasses KOSPI 6,000, we too will rise to an advanced-market level," adding, "Recently, JPMorgan revised its target to 7,500, and I believe that once we go beyond that level, we can enter a premium stage."
Jung emphasized, "In active response to the government's stance of removing zombie companies, we will make the swift delisting of insolvent companies from the stock market our top priority and push ahead with speed," adding, "We will tighten delisting criteria such as market capitalization and sales, and strengthen the organizations and personnel in charge of delisting reviews so that marginal firms can be quickly removed."
He said, "To eradicate unfair trading, we will reinforce the cooperative framework of the joint response task force and promote the advancement of our market surveillance system by incorporating artificial intelligence (AI) technology," adding, "Through this, we will enhance the credibility of the capital market."
The Korea Exchange will also actively promote a major shift toward productive finance, which is a core economic policy of the government. Jung said, "To vitalize venture capital, we will facilitate tailored listings for cutting-edge technologies such as AI and enhance the expertise and speed of reviews for technology companies," adding, "To enable the timely raising of growth capital, we will swiftly support the introduction of Business Development Companies (BDCs), expand analytical reports on KOSDAQ-listed companies, and strengthen our incubating function for unlisted companies."
He added, "We will enhance the expertise and independence of the KOSDAQ division's organization and personnel, and also strengthen programs to boost corporate value, such as improving disclosure guidelines."
Active push to extend trading hours
To strengthen the global competitiveness of the exchange, trading hours will also be actively extended. By June, the Korea Exchange plans to open a pre-market (7:00 a.m. to 8:00 a.m.) and an after-hours market (4:00 p.m. to 8:00 p.m.) around the regular session (9:00 a.m. to 3:30 p.m.). It also aims to introduce a 24-hour trading system by the end of next year. This is a measure to respond to the establishment of 24-hour trading systems at global exchanges such as the New York Stock Exchange (NYSE) and Nasdaq in the United States.
Jung said, "By opening pre-market and after-hours sessions in the stock market, we will activate trading during commuting hours and, in stages, promote the introduction of a 24-hour trading system," adding, "We will push for 24-hour trading in the derivatives market and a shorter stock market settlement cycle, and we will also work toward inclusion in the MSCI Developed Markets Index by bringing forward the mandatory implementation of English-language disclosures."
Regarding the decision to set the pre-market opening time at 7:00 a.m., he explained, "During consultations with member firms, there were many opinions that it was necessary to extend trading into a non-overlapping time zone with the NextTrade pre-market (which operates from 8:00 a.m. to 8:50 a.m.), and we reflected the wishes of member firms while also taking into account the IT burden from a technical standpoint."
He said, "To secure future growth engines, we will swiftly introduce products such as single-stock leveraged exchange-traded funds (ETFs), which have so far only been traded overseas," adding, "We will also push for the listing of new products such as weekly options and emissions futures."
Jung said, "Our capital market stands at an inflection point for a major leap forward, and the Korea Exchange will concentrate all its capabilities on advancing the capital market toward achieving a Korea premium."
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