[Reporter’s Notebook] Why Policies Must Match Corporate Strength

On the day the Korea Composite Stock Price Index (KOSPI) once again hit an all-time high, voices in the securities industry were already saying, with a mix of hope and excitement, that “5,000 is not far off.” On the 8th, KOSPI broke through the 4,600 mark during trading and continued its upward momentum to close at 4,552.37. It has set new records for five consecutive trading days since the start of the year. Leading the rally were the two semiconductor heavyweights, Samsung Electronics and SK Hynix, whose share prices have surged 160% and 286%, respectively, from a year earlier.
Such a steep climb inevitably recalls past episodes when global asset markets—from Bitcoin (BTC) and gold to the Nasdaq Stock Market (Nasdaq)—soared only to undergo sharp corrections. For the current rebound to develop into sustainable growth rather than a short-lived spike, two pillars must move in tandem: the underlying strength of companies and the way policies are designed.
The problem is that the current system still focuses almost exclusively on the “size” of a company. Once a firm’s assets exceed 2 trillion won, it becomes subject to a host of governance regulations, including mandatory electronic general meetings of shareholders and expanded separate appointments of audit committee members. According to the Korea Chamber of Commerce and Industry (KCCI), there are 343 differentiated regulations based on size thresholds. The Commercial Act of the Republic of Korea accounts for 65 of them, the largest share, followed by the Distribution Industry Development Act, the Occupational Safety and Health Act, and the Monopoly Regulation and Fair Trade Act (MRFTA). The specific characteristics of each industry or sector are largely ignored; what matters is a single, uniform yardstick—asset size.
An even bigger concern is that global competition is intensifying. Korean companies no longer compete only with their domestic peers. Their rivals are U.S. Big Tech firms pouring billions of dollars into technology, and European countries that are boosting industrial appeal through tax cuts and subsidies. This is why there is growing anxiety that regulations focused solely on fairness among domestic firms may end up undermining, rather than supporting, global competitiveness.
The way corporate management is punished ex post also acts as a drag. The Act on the Aggravated Punishment, etc. of Specific Economic Crimes allows for life imprisonment in cases of breach of trust involving 5 billion won or more. Business circles argue that penalties are excessively harsh and that alternative legislation with clearer regulatory standards is needed. The fear that a particular investment decision could later be deemed a breach of trust becomes a shackle that discourages management from making bold judgments in the first place.
A KOSPI level of 5,000 is not just a symbolic milestone to be reached; it is an indicator of the market’s expectations and confidence in the Korean economy. To ensure that the current rally does not end up as an illusion, the system must give companies enough breathing room to bear the responsibilities being placed on them. Fairness matters, but we must not lose sight of the fact that the more urgent value today is competitiveness. It is time to ask, and honestly answer, whether the regulations we have are truly suited to the competitive landscape of future industries.
moving@fnnews.com Reporter