Kim Yong-beom: 'Youth escaping from the stock market is not about profit but trust'... mentions 'stopping overlapping listings'
Kim Yong-beom, chief policy officer at the Blue House, emphasized that the concerns of young investors stem not merely from seeking short-term returns but rather from a desire for trust in the market's operation, especially in light of recent government actions against overlapping listings.
On October 8, Kim Yong-beom, the chief policy officer of South Korea's Blue House, addressed the pressing issue of young investors turning away from the local stock market, stating that their exit is largely tied to their demand for trust and fairness rather than just higher profits. He noted that recent government moves to halt attempts at overlapping listings—where a profitable subsidiary is listed separately from its parent company—symbolizes a step towards restoring investor confidence. This reflects young investors' frustrations and perceptions of the market as fundamentally 'unfair' and 'untrustworthy'.
Kim highlighted that many young investors perceive their transition to the U.S. markets as a quest for fairness and reliability in market operations, rather than solely seeking higher returns. This sentiment underscores a critical shift where the movement of capital is increasingly influenced by the perceived integrity and adherence to rules within the market. The decision to halt overlapping listings has been interpreted as an unprecedented move that prioritizes investor interests and challenges traditional practices, aiming for a more equitable market environment.
This discussion follows recent criticisms from various quarters regarding overlapping listings, particularly in the context of how they could dilute existing shareholders' value and favor dominant stakeholders. Kim noted that the government's decision is seen as not just a corrective action but a significant step toward aligning market practices with the expectations of a new generation of investors—suggesting that such proactive measures are vital for fostering a resilient market, one that is viewed as fair and trustworthy by those who are essential for its future growth.