Acting FSS Chief Says "Stock Market Recovering, But Still Undervalued"

by Lee Changhwan

Published 09 Jun.2025 10:20(KST)

Thorough Review of Debt Adjustment and Support Status for Small Business Owners

Sehun Lee Senior Deputy Governor Financial Supervisory Service

The Financial Supervisory Service emphasized that, although the Korean stock market has recently shown signs of recovery, it remains undervalued compared to major overseas markets, making it urgent to revitalize the capital market. The FSS also stated that it would review the current status of support for small business owners and others to strengthen the supply of funds.

Acting Governor Sehun Lee of the Financial Supervisory Service held an executive meeting at the Yeouido headquarters in Seoul on the morning of June 9 and said, "While our economy experienced negative growth in the first quarter and is projected to grow at 0% this year, the stock market, which has recently shown signs of recovery, remains undervalued compared to major countries. The polarization in funding conditions between high-quality and lower-quality companies is also intensifying, making it urgent to revitalize the capital market."

According to the FSS, the price-to-book ratio (PBR) of the Korean stock market stands at 0.8, which is lower than that of the United States (4.8), Japan (1.5), China (1.5), India (4.0), and Taiwan (2.6).

Acting Governor Lee instructed, "We need to actively review detailed tasks such as improving financial sector fund management regulations so that idle funds in the market can circulate soundly from stable real estate finance focused on interest margins to the capital market and productive sectors."

He also stated, "We will closely examine the status of debt adjustment and financial support for small business owners and others, and guide efforts to strengthen the supply of necessary funds."

He further emphasized, "Until a new governor is appointed, all executives and employees must remain particularly vigilant about risk factors in the financial market and respond closely, while doing their utmost to implement the pledges promoted by the new government."