Chair Jung Eun-bo of Korea Exchange (KRX) said she expects the KOSPI could break through 6,000. She also said the exchange will toughen delistings of so-called "zombie corporations."
Jung said this in an interview with Bloomberg published on the 20th.
Jung said, "The KOSPI is approaching 5,000," adding, "I think 6,000 is possible."
Jung explained that "Korea's key industries, including semiconductors, defense, and shipbuilding, are boosting competitiveness and driving a rise in stock market value."
If the KOSPI index climbs just 2% more, it can break through 5,000, but it would need to rise an additional 22% to top 6,000.
The KOSPI index has surged 94% over the past year. Recently, it set a record high for 12 straight trading days. Bloomberg reported that this is the highest gain among more than 90 global stock indexes it tracks.
Jung said the exchange will "strengthen delistings of so-called 'zombie corporations' or corporations that have long failed to generate enough revenue to cover interest expense," "to help the KOSPI break through 6,000."
Jung added that "these corporations need to be removed as quickly as possible to restore market trust."
She went on to explain that "about 2,800 listed corporations are too many relative to the size of the economy and capital market."
She also said efforts are underway to have the Korean 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 exceed outflows."
Jung concluded by emphasizing that "the upward trend in the Korean stock market is expected to continue," and that "the Korean government will further strengthen efforts to improve shareholder returns and attract global capital."