Democratic Party's Kim Byung-wook to Floor Leader Joo Ho-young: "KOSPI 3000, Are You Dreaming? Don't Snuff Out the Flame"

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] On the 6th, Kim Byung-wook, a member of the Democratic Party of Korea, stated on Facebook, "The KOSPI breaking through the 3000 mark was not, as Floor Leader Joo Ho-young said, 'nonsense while sleeping,'" adding, "At that time, Floor Leader Joo Ho-young of the People Power Party and former National Assembly member Lee Hye-hoon negatively mentioned the KOSPI breaking through 3000 solely to criticize President Moon Jae-in, misinterpreting the diligent investment activities of the Donghak ants as an 'abnormal stock price rise.'"

He continued, "Please do not extinguish the flame of hope for the Korean economy," and said, "Now, I will closely analyze and meticulously legislate so that the domestic capital market can healthily grow beyond KOSPI 3000 toward 4000 and 5000."

Floor Leader Joo, at a floor countermeasure meeting on the 15th of last month, said, "I am deeply worried whether there is a proper recognition of reality, and who writes such presidential speech materials and reads them without checking," adding, "No one believes that the anxiety over COVID-19 will disappear or that the economy, which has fallen as far as it can, will recover just because hopeful prospects about the 3000 stock price era are presented." He further added, "The public will feel that the president is talking nonsense while sleeping."

Former member Lee also said on social media, "Dismiss all the aides in the Blue House who made such remarks." He also claimed, "Experts analyze that the current stock price rise is overvalued by about 27% considering export performance and about 15% considering the overflowing liquidity," and argued, "The risk is considerable due to the excessively inflated bubble stock prices compared to the real economy, so the government must prepare firmly."

On the other hand, Representative Kim said, "Even in the unprecedented recession phase caused by the COVID-19 pandemic, the Korean stock market is setting historic milestones by recording the highest trading volume ever and renewing indices," adding, "Each of our citizens has saved it under the name of 'individual investor.'"

He continued, "The rise in stock indices has become a driving force that helps individuals and companies endure during the COVID-19 economic crisis. Due to newly inflowed funds, large and small companies are becoming stronger."

In response, former member Lee Hye-hoon posted a rebuttal again that day titled 'Regarding Kim Byung-wook’s COVID 3000: Can't even understand words... Are you really an expert?' Lee said, "You misunderstood and counterattacked in the wrong direction," adding, "My issue was not 'KOSPI 3000 is impossible' but 'the situation of reaching KOSPI 3000 is dangerous.'"

He continued, "Since it has been confirmed by experts' empirical analysis that the bubble stock price is excessively inflated compared to the real economy, there is a significant air pocket risk, so the government must prepare firmly," adding, "How could the Ministry of Economy and Finance vice minister have come out to warn with concern around the same time as the president’s remarks?"

He then emphasized, "'The gap between the real economy and finance can lead to asset value adjustments.' In other words, since the stock price did not rise because the real economy is good, the bubble could burst and crash with even a small external shock, so we must prepare cautiously," and added, "This is not the time to inflate hope and pop champagne bottles."

This content was produced with the assistance of AI translation services.