President Lee: Stock market recovery is removing 'big stones,' further normalization needed

President Lee Jae-myung acknowledged the recent surge in the stock market, with the KOSPI breaking records, but cautioned that the recovery is still in its early stages. Speaking at a joint State Council and emergency economic inspection meeting, the president likened the current progress to removing "a few big stones" from the market, implying that more work is needed to address smaller, yet significant, issues.

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It's only at the level of removing a few big stones. Now we need to remove the small stones, don't we? They may seem small, but if we fix them, things will gradually improve.

Lee emphasized the ongoing efforts by the Financial Services Commission to normalize the stock market, noting the positive effects of these measures. He expressed keen interest in the next phase of normalization, which involves addressing legal frameworks and restructuring the Korea Exchange. The president's focus remains on ensuring a stable and robust market that reflects the true value of Korean companies.

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The stock market normalization measures must continue. When can we see what the Policy Office has prepared?

Despite the recent gains, President Lee raised a pertinent question about whether the Korean market is still undervalued compared to international markets. Financial Services Commission Chairman Lee Won-deok affirmed this, stating that even with the recent rise, the market remains undervalued when considering corporate earnings. This perspective highlights a persistent concern about the disconnect between the actual performance of Korean businesses and their market valuation, a sentiment often echoed by local investors and analysts.

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There are two aspects: legal aspects and the Korea Exchange's own structural reforms. We will prepare and report.