Feb 25 • 10:51 UTC 🇰🇷 Korea Hankyoreh (KR)

President Yoon: Money Stuck in Real Estate Flowing Positively... Jeong Cheong-rae: National Normalization Leads to Stock Market Normalization

The leaders emphasized the recent rise in South Korea's stock market and the positive implications of redeployed real estate funds during a press briefing.

On the 25th, Jeong Cheong-rae, the leader of the Democratic Party, remarked that the nation has regained normalization since the inauguration of President Lee Jae-myung, suggesting that the stock market is also on the path to normalization. With the Kospi index surpassing 6000 for the first time, there is a push for further discussions on enhancing financial market structures to sustain this bullish trend. President Lee shared at a luncheon with party advisors that the movement of money previously tied up in real estate into productive capital markets is a positive development.

The Democratic Party's 'Korea Premium K-capital Market Special Committee' plans to strengthen the implementation of the 'Stewardship Code' designed for institutional investors, especially as the shareholder meeting season approaches in March-April. Kim Nam-geun, the committee's secretary, stated their intention to collaborate with the government on this initiative and hold discussions with financial authorities to enhance the code’s effectiveness, promoting active shareholder engagement by institutional investors to improve shareholder value.

Additionally, the special committee aims to monitor the effectiveness of recent amendments to commercial laws in the market and work towards implementing further legislative changes prioritized by President Lee on social media, such as the 'Stock Price Suppression Prevention Law.' This law aims to prevent major shareholders from artificially lowering stock prices to evade inheritance and gift tax obligations. The committee seeks to address these issues and promote fair valuation of companies below a price-to-book ratio of 0.8 to encourage investment and market stability.

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