Bloomberg: Investment Failure President, Hero of 14 Million Small Investors
President Lee Jae-myung's capital market reforms have been credited with driving an unprecedented surge in the South Korean stock market, according to Bloomberg analysis.
A recent Bloomberg analysis highlighted that President Lee Jae-myung's capital market reforms have significantly influenced the South Korean stock exchange, transforming it into one of the world's most profitable markets. The reforms, initiated after Lee came to power in June last year, aimed at creating an equitable investment environment for all shareholders and enhancing the accountability of board members, addressing the longstanding issue of the 'Korean discount' that disadvantaged ordinary shareholders. Following the reforms, the KOSPI index reached record highs, indicating a remarkable increase of 38% this year and an astounding 115% since Lee's presidency began.
Bloomberg linked these market improvements to President Lee's personal experiences with investment, noting that he suffered losses in his early thirties due to the inequitable structure of the South Korean stock market favoring major shareholders. This firsthand struggle informed his understanding of the systemic inequalities in the market, prompting him to pursue reforms that benefit everyday investors. The article pointed out that even decades later, Leeβs frustrations regarding the losses still resonate with him, fueling his commitment to equitable trading practices.
The surge in stock prices has bolstered President Lee's approval ratings and alleviated social unrest caused by former President Yoon Suk-yeol's controversial administration. Bloomberg concluded that this stock rally has transformed Lee into a hero for the 14 million small investors in South Korea, reflecting a significant shift in investor sentiment and the potential for political stability amid economic growth.