Chair Jung Eun-bo of Korea Exchange (KRX) said she expects the KOSPI could break above 6,000. She also said the exchange will toughen delistings for so-called "zombie corporations."
Jung said this in an interview with Bloomberg News published on the 20th.
Jung said, "The KOSPI is approaching 5,000," adding, "I think 6,000 is also possible."
She explained that Korea's key industries, including semiconductors, the defense industry and shipbuilding, are boosting competitiveness and driving gains in the stock market's value.
The KOSPI index could break 5,000 with only a 2% further rise, but it would need to climb an additional 22% to top 6,000.
The KOSPI index has surged 94% over the past year. Recently, it set new record highs for 12 trading days in a row. Bloomberg reported that this is the highest gain among more than 90 global stock indexes it tracks.
Jung said the exchange will "tighten delistings of so-called 'zombie corporations' or corporations that have not generated enough revenue for a long period to cover interest expense," "to break through KOSPI 6,000."
She added that "to restore market trust, these corporations need to be removed as quickly as possible."
She went on to explain that "about 2,800 listed corporations are too many compared with the size of the economy and the capital market."
She also said efforts are underway to have the Korea stock market included in the Morgan Stanley Capital International (MSCI) developed markets index.
Jung said, "It may take a few years to be included in the MSCI developed index," but added, "If inclusion happens, inflows of funds from global funds will far outpace outflows."
Jung concluded, "The upward trend in Korea's stock market is expected to continue," emphasizing that "the Korean government will further strengthen efforts to improve shareholder returns and attract global capital."