The Democratic Party of Korea changed the name of the "KOSPI 5000 Special Committee," which it had set up to boost the stock market, to the "Korea Premium K Capital Market Special Committee." With the KOSPI recently surpassing 5,000, the party said it would change the signboard and aim higher. Democratic Party leader Jung Chung-rae declared that the KOSPI could surpass 6,000 and even reach 10,000.
The Democratic Party's K Capital Market Special Committee held a full meeting at the National Assembly on the morning of the 3rd to discuss future legislative tasks. The meeting was the first since the KOSPI exceeded 5,000.
In opening remarks, leader Jung Chung-rae said, "When President Lee Jae-myung, as a candidate, talked about 'KOSPI 5000,' some sneered and mocked. I would like to hear a word now about what expressions and thoughts they have," adding, "At the time, President Lee said KOSPI 5000 would be possible if policy instability, stock market instability, the regressive contradictions of corporate governance, and geopolitical risks on the Korean Peninsula were resolved."
He continued, "When the special committee was created with the goal of achieving KOSPI 5000, we wondered when it would happen, but contrary to our expectations, the KOSPI index is proving that Korea is changing and developing at a remarkable pace," adding, "Now that the KOSPI has surpassed 5,000, 10,000 is by no means a dream."
Oh Ki-hyeong, a Democratic Party lawmaker who chairs the K Capital Market Special Committee, said, "Eight months after the KOSPI 5000 Special Committee was launched, the KOSPI index entered the 5,000 range," adding, "Based on 2024, the KOSPI's price-to-book ratio (PBR) was 0.9. And at the KOSPI 5,000 level, it changed to 1.6. A substantial portion of the Korea discount has been resolved."
The K Capital Market Special Committee set goals that include: ▲ swift passage of the third Commercial Act amendment mandating the cancellation of treasury shares ▲ follow-up measures to the first and second Commercial Act amendments ▲ improvements to the stewardship code ▲ improvements to the mandatory tender offer system and dual listings ▲ and addressing stock price suppression.
Rep. Oh said, "The Korea discount (domestic stock market undervaluation) still remains, and there is still a long way to go to move toward a developed-market 'Korea premium,'" adding, "We will continue to pursue institutional enhancements on the trust front."