Rep. Lee Jae-myung, leader of the main opposition Democratic Party of Korea asserted Monday that the nation's main stock index would surge if his party takes power amid growing criticism of his recent rightward shift.
"If the Democratic Party assumes power, the Kospi index will reach the 3,000 level without any special changes," Lee said during a party leadership meeting at the National Assembly in Yeouido, Seoul.
The Kospi, the country's main stock bourse, ended Monday's trading at 2,610. The index last surpassed 3,000 in early 2021, reaching an all-time high of 3,316 in June of that year backed by global liquidity, low interest rates and a retail investor boom. The president at that time was Moon Jae-in, a member of the Democratic Party.
An administration led by a Democratic Party leader would create a fairer market, attracting more foreign investment, Lee said while criticizing the lack of accountability for stock manipulation as a major deterrent.
"The way to reach Kospi 3,000 is simple. If the Democratic Party takes power, the market will become fairer," he said. "If companies can manipulate stock prices to pocket tens of billions while retail investors suffer losses, why would foreign investors put their money in Korea?"
To restore investor confidence, Lee pointed to his party’s push for corporate governance reform, such as revising commercial laws to hold businesses more accountable.
"The Democratic Party initially sought to amend the Capital Markets Act to regulate stock manipulation more directly, but due to opposition from the ruling People Power Party, it opted to revise the Commercial Act instead," he said.
The Democratic Party began working to tighten corporate accountability through a Commercial Act revision last month. Their proposal includes stronger responsibilities for company board members and mandatory cumulative voting for large listed firms with assets over 2 trillion won ($1.38 billion).
Regarding criticism that the Democratic Party has shifted rightward, Lee dismissed such claims, saying, "The Democratic Party has always been an economy-focused party."
"Refusing to adapt despite changing circumstances -- that’s what being foolish is," he added.
flylikekite@heraldcorp.com
