Jeong Cheongrae Visits Korea Exchange: "We Must Enter the Korea Premium Era"

Jeong Cheongrae: "We Will Mobilize All Party Efforts to Revitalize the Stock Market"

On September 30, Jeong Cheongrae, leader of the Democratic Party of Korea, stated, "It is time to move beyond the Korea Discount era and enter the Korea Premium era," emphasizing the need to transform the economic structure to revitalize the capital market.

Jeong made these remarks during a capital market on-site meeting held at the Korea Exchange (KRX) in Yeouido, Seoul, that afternoon, saying, "We need to redirect the flow of money."

He referred to difficulties in the exchange rate and stock market during the martial law crisis in December last year, arguing, "For three years under the previous administration, repeated confrontation-based North Korea policies led to persistent risks on the Korean Peninsula. Combined with the illegal martial law, the Korea Discount intensified, causing foreign investment to flow out rapidly, almost like an ebb tide."

He continued, "Once trust is lost, it is even slower and more difficult to regain," adding, "Fortunately, with the inauguration of the Lee Jaemyung administration, trust is being restored and the stock market is entering a period of revitalization."

Jeong also said, "For many years, too much capital has flowed into the real estate market, which only deepened the polarization between the rich and poor without creating new added value." He emphasized, "The KOSPI 5000 era proposed by President Lee Jaemyung aims to fundamentally transform our economy so that we can continuously generate added value and create a virtuous cycle where all citizens share in the benefits."

Mentioning the passage of the Commercial Act amendment in July, which includes measures to improve corporate governance and strengthen shareholder rights, Jeong said, "At the party level, we formed a 'KOSPI 5000 Special Committee' and focused discussions on revising the Capital Markets Act to protect minority shareholders." He pledged, "If you provide various suggestions to make our stock market an attractive investment destination for all citizens, we will listen carefully and mobilize all our efforts to help revitalize the stock market."

Yonhap News Agency

Beyond normalizing the capital market, the party also plans to focus on follow-up legislation and policy improvements to ensure the Value-Up Program functions properly. Han Jeongae, chair of the Policy Committee, mentioned retirement pensions that are managed as funds, saying, "If you look at the entire Korean capital market, shifting from the current operating method to a fund-based system that enables large-scale investments will help the capital market play a greater role."

Jeong stated, "The price-to-book ratio (PBR) is currently around 1.1 to 1.2, but if it reaches 2.0, the stock index will reach 5,000," stressing that policies directly and indirectly affecting the stock market, such as inter-Korean relations and diplomatic environment, will also be improved.

During the meeting, the party also gathered industry opinions on initiatives such as the mandatory cancellation of treasury shares being promoted by the Democratic Party. Moon Daerim, spokesperson for the Democratic Party, told reporters after the meeting, "There were discussions about transparent information disclosure for investors, protection of minority shareholder rights, and issues related to the cancellation of treasury shares."

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