Koo Yun-cheol, Deputy Prime Minister and Minister of Economy and Finance, said on the 21st regarding his statement that the price-to-book ratio (PBR) of the KOSPI is 'about 10,' 'I mistook the PBR for the price-earnings ratio (PER). I apologize for my oversight.'
During a full meeting of the Strategy and Finance Committee on the same day, when Chairperson Lim Lee-ja asked, 'The PBR statement is causing misunderstandings. Do you have anything to say?' Koo responded, 'I hesitated to speak as it seems like I'm making excuses, but since the chairperson gave me the opportunity, I will answer.'
Koo continued, 'The government has a firm commitment to revitalizing the capital market,' and stated, 'We will do our best to open the era of the Korea Premium, surpassing the Korea Discount and the 5,000-point mark.'
He added, 'I will do my best to enhance self-capital by improving corporate governance, fully establishing fair market order, and expanding the demand base for the stock market through the inclusion in the MSCI developed market index, so that the flow of market funds can be productively transformed.'
Koo also said, 'Once the new chairperson of the Financial Services Commission arrives, we will closely consult and pursue tasks for revitalizing the capital market.'
On the 19th, during a report to the Strategy and Finance Committee, when Democratic Party of Korea lawmaker Lee So-young asked, 'The KOSPI is about 3,200; do you know what the price-to-book ratio (PBR) is?' Koo responded, 'Isn't it about 10?' The KOSPI PBR was '1.06,' showing a significant gap from Koo's answer.
In contrast, the KOSPI PER was 12.66 times at the end of last year and has maintained a level around 14 times this year as stock prices have risen.