President Lee Jae-myung visited the Korea Exchange on Wednesday, just a week after taking office. He stressed the need for strong action against unfair stock trading practices like manipulation. “The government will take firm measures against unfair trading by adopting a ‘one strike, you’re out’ policy for activities such as stock manipulation,” said presidential spokesperson Kang Yu-jung.
“It will also confiscate illicit gains by imposing fines equivalent to the profits unfairly earned.”
Lee highlighted the importance of a “fair and transparent” market to help restore investor confidence. He noted that the benchmark Korea Composite Stock Price Index (KOSPI) had jumped 5.81% since his inauguration. This aligns with his election pledge to raise the index to 5,000 points.
“If we can make stock investment a viable alternative to real estate—allowing citizens to receive interim dividends and earn living expenses—it will not only ease capital raising for companies but also create a virtuous cycle for the entire South Korean economy,” Lee stated.
Combating stock manipulation in Korea
The KOSPI surpassed 2,900 points earlier that day for the first time in over three years.
Lee’s administration is expected to implement stricter regulations on unfair trade practices related to capital markets. The goal is to bolster investor confidence and ensure a more equitable economic environment. Prime Minister-nominee Kim Min-seok recently disclosed his property holdings, totaling 210.47 million won.
This highlights the administration’s commitment to transparency and ethical governance. Kim also mentioned ongoing efforts to root out corruption and ensure regulatory measures lead to a more trustworthy market. As the administration continues to outline its economic policies, the public and market participants are closely watching to see how these new regulations will unfold and impact the South Korean economy.
