South Korea’s Stock Market Is Deeply Undervalued, President Lee Says

President Lee Jae-myung said South Korea’s stock market is deeply undervalued and that his administration is considering additional measures to strengthen market confidence.

Speaking to reporters at the Chunchugwan press center at the presidential office on October 19, Lee said it was a fact that the South Korean stock market remains deeply undervalued. He added that distrust over corporate governance and shareholder-oriented management has not been fully resolved.

Lee said the government is continuing to review the policies needed to normalize the stock market. He said he would decide on follow-up measures after receiving a comprehensive report on the issue in the near future.

He drew a line at direct government intervention in the securities and financial markets. Rather than artificially pushing markets up or down, the government should focus on institutional improvements that enhance fairness and transparency.

Lee also cited the protection of shareholder rights and the abuse of managerial control as unresolved issues. He said a culture of respecting shareholders has not yet taken firm root and that problems stemming from controlling shareholders’ abuse of management authority still need to be addressed.

On real estate policy, Lee expressed concern that assets remain overly concentrated in property. He said the government should play a role in reducing price swings, while noting that policy needs to be calibrated more precisely so that lending restrictions do not harm genuine homebuyers.

He also maintained his existing position on stronger taxes for ultra-expensive homes and owners of multiple properties. Lee said tougher real estate taxes are intended not to curb home prices or increase tax revenue, but to improve tax fairness.

On wartime operational control, Lee again stressed the need for a swift transfer. He said consultations between South Korea and the US are also moving toward returning operational control to South Korea.

Lee acknowledged that South Korea and US intelligence authorities are not in complete agreement on every issue. Still, he said the differences amount to limited gaps in opinion that arise as each country seeks to protect its own interests.