On October 18, President Yoon Seok-youl addressed the ongoing stock market fluctuations linked to the U.S.-Iran war during a meeting focused on capital market stabilization and normalization. He stressed that tackling necessary reforms during this period is crucial for readiness for a new beginning. The President noted the rapid rise in stock prices to mid-6000s from the 2500 level without a correction led to an uneasy feeling among investors and highlighted the potential for current market corrections to be a turning point.

During the meeting, the government announced plans to improve corporate valuation by releasing a list of undervalued companies and restructuring the KOSDAQ market into two leagues for mature and growing companies. Furthermore, to protect minority shareholders, a principle was introduced to prohibit ‘dual listings’ of subsidiaries if the parent company is already publicly listed. President Yoon also pointed out that for decades, stocks listed on the Korean stock exchange have faced discounts due to various structural issues such as corporate governance problems and market manipulation.

Addressing the geopolitical risks surrounding the Korean Peninsula, President Yoon claimed that such risks might be overstated and suggested that these fears have been unfairly exploited in politics. He argued that it is feasible to transform the ‘Korea Discount’ into a ‘Korea Premium’. The President reiterated a zero-tolerance stance on stock price manipulation, stating that those involved will face severe penalties including the forfeiture of principal amounts, and mentioned efforts to strengthen regulatory enforcement against market manipulation aiming to resolve these issues effectively.