Lee says stock market undervaluation has not been fully resolved, says a premium should be possible

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\r\n[Financial News] President Lee Jae Myung said on the 12th that the stock market, which is approaching the KOSPI Composite Index at 8,000, is still not fully free from undervaluation.
At the State Council and Emergency Economic Review Meeting he chaired at The Blue House, Lee said, "We must move toward a world-leading advanced capital market and make sure a Korea premium, not a Korea discount, is possible. That is, in fact, the way to increase the public's wealth."
After a report from Financial Services Commission Chairman Lee Eok-won, Lee said, "The valuation gains in the stock market have exceeded 7,000 trillion won," adding, "Two factors came together: the existing undervaluation improved, and recent earnings also got better."
He continued, "Improving undervaluation means that assets we already held were previously valued too low, so our wealth was unfairly reduced. Now that has increased somewhat. Doesn't that effectively mean national wealth has grown?"
Lee stressed, "It is very important to normalize the abnormal market order in the financial sector," and added, "What matters is creating a truly common-sense financial order. Of course, this is all tied together with the shift to productive finance, the escape from a real-estate speculation republic, and the normalization of market order that we have pursued so far. I think these are tasks that must continue going forward."
He also pointed out, "It is important to catch up with other countries, but when other countries had a PER of 20, ours was 8 to 9, or at best 10 to 12. We were unfairly undervalued. Wasn't the public suffering financial losses because of the government's policy shortcomings?"
He added, "It is only natural that this should not happen again and that we normalize the situation. Beyond that, we must build a market that is far better than those in other countries," and said, "No other country's market can be said to be perfect. There will likely be many shortcomings."
Lee said, "There was a time when the National Pension Service was said to be depleted in a few years, and the entire nation argued over structural reform. Now, thanks to government policy, that need has disappeared," and urged, "The Financial Services Commission has a very important role in overcoming this unfair undervaluation. Please do your best going forward, and go beyond simply catching up with other countries to the point where they will have to follow us."
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cjk@fnnews.com Choi Jong-geun Reporter