President Lee Jae-myung will preside over a roundtable on the 18th under the theme of "stabilizing and normalizing the capital market." As the domestic stock market has swung sharply with the recent Middle East situation and concerns about a "bubble" have grown, the event will invite capital market stakeholders such as listed companies and institutional investors to hear their views and seek government-level responses.
On the 12th, Cheong Wa Dae Spokesperson Kang Yu-jung said the roundtable was arranged "to review response measures to volatility in financial markets stemming from the Middle East situation, and to discuss fundamental reforms to the capital market's structure by turning crisis into opportunity and to push reform tasks with speed." The slogan is "A capital market strong in crisis, trusted by the people."
The roundtable will be attended by the chair of the Financial Services Commission and the governor of the Financial Supervisory Service, KOSDAQ and KONEX-listed companies, institutional investors and other capital market participants, as well as young and individual investors, and the entire event will be broadcast live. Kang, the Spokesperson, said it will "present vivid on-site opinions to build a capital market the public can trust and invest in."
Since the launch of the Lee Jae-myung administration last year, the Korean stock market has grown rapidly to usher in the "KOSPI 6000" era, but it plunged due to external factors such as the Middle East war, fueling the "Korean stock market bubble" theory in the market. In response, Cheong Wa Dae Policy Chief Kim Yong-beom personally said, "It hasn't become expensive; it is finding its fair value," posting a note that the Korean stock market is undergoing a "reappraisal process."
◇ Cheong Wa Dae policy chief: "Korean stocks' order backlog cycle, a time for reappraisal"
Earlier, on the night of the 5th, Kim posted on Facebook an article titled "Republic of Korea, Inc., a time for reappraisal," saying, "We are not on a simple cyclical upswing tied to economic sensitivity but on an 'order backlog cycle' based on confirmed revenue," and added, "Rather than asking 'is this the peak now,' we should ask whether we have properly calculated the 'value of our bottlenecks.'"
Kim said attention should be paid to how major domestic corporations such as Samsung Electronics, SK hynix, HD Hyundai Heavy Industries and Samsung Heavy Industries, and Hanwha Aerospace sit at the core of industrial supply chains spanning artificial intelligence (AI) data centers, power, defense and energy. He also said, "Low dividends, passive shareholder returns, and opaque governance are the essence of the Korea discount," adding, "In the recent market, calls are growing for larger dividends and share cancellations, and for shareholder activism, and discussions on governance reform are gaining full steam." He saw these changes not as a "bubble" but as a "re-rating."