President Lee backs stock market: "We have a mountain of work, including a stock price suppression prevention bill"

On the 25th, President Lee Jae Myung stated that there is "a mountain of work to do, including the ‘stock price suppression prevention’ bill," reiterating his determination to accelerate efforts to normalize the capital market. He was particularly upbeat about signs that funds previously locked in real estate are beginning to flow into the productive capital market, calling this very encouraging. On the same day that he again outlined this policy direction, the KOSPI closed above the 6,000 mark for the first time in its history.
That day, the president used X (formerly Twitter) to highlight the stock price suppression prevention bill and the treasury stock cancellation bill, and, referring to opposition from rival parties, remarked, "They may have their own reasons, but it is not easy to accept them. The days are short and the road ahead is long."
He also said, "I hope the treasury stock cancellation bill will pass as soon as possible." The "Third Amendment Bill to the Commercial Act," which centers on this measure, cleared the threshold of the plenary session of the National Assembly later that afternoon, after the Democratic Party of Korea ended a filibuster requested by the People Power Party.
The stock price suppression prevention bill mentioned by the president refers to an amendment to the Inheritance and Gift Tax Act, proposed last May by DPK lawmaker Lee So-young and still pending. The bill aims to prevent controlling shareholders from deliberately pushing down share prices to reduce their tax burden when transferring shares through inheritance. Its key provision is that when a company’s stock price is trading at less than 80% of its net asset value, inheritance tax should be calculated not on the market price but using the "valuation method for unlisted companies."
At Cheong Wa Dae that day, the president held a luncheon with the DPK Standing Advisory Council, including former National Assembly speakers Moon Hee-sang, Kim Jin-pyo, Kim Won-ki, Park Byeong-seug, Lim Chae-jung, and Chung Sye-kyun; senior advisors Kwon No-gap and Lee Yong-deuk; former prime minister Han Myeong-sook; and Unification Minister Chung Dong-young. Participants said the dominant topic at the table was the KOSPI’s surge past 6,000. Kim Jin-pyo, former speaker of the National Assembly, commented, "The KOSPI breaking through 6,000 is a symbolic event showing that a leader with the ability to deliver has emerged," and added, "Please actively utilize young people who are currently on the sidelines to improve the trade environment." Lee Yong-deuk, a senior advisor to the DPK, assessed that "the fact that the KOSPI passed 6,000 mainly on individual buying shows that the public has that much trust in the president." Kwon No-gap, another senior advisor, said, "We are seeing positive signals across the economy, including in real estate and stocks," and urged, "Please also pay attention to youth employment, low birth rates, and the climate crisis."
In response, the president stressed, "What I consider most important right now is resolving livelihood and economic issues," and pledged, "We will definitely resolve the chronic problem of wealth being concentrated in real estate, which fuels social polarization and hardship for ordinary people." He added, "It is both very natural and very encouraging to see signs that money previously tied up in real estate is now flowing into the productive capital market."
Kyuyoun Lee, Senior Secretary to the President for Public Communication, was asked at a briefing at the Chunchugwan press center whether the president had made any specific remarks about the KOSPI crossing 6,000. He replied, "He did not say anything in particular," but went on, "He considers trends and overall direction extremely important. He described it as a very encouraging development that money is flowing out of real estate and into the stock market, that the flow of funds is moving toward productive finance."
cjk@fnnews.com Reporter Choi Jong-geun