Lee Jae Myung Calls Capital-Market Normalization an Unwavering Commitment, Orders Review of Hostile-Takeover Barriers
South Korean President Lee Jae Myung, chairing a capital-market policy meeting at the Korea Exchange in Yeouido, Seoul, on November 13, said that normalizing the capital market is his government's unwavering policy direction and commitment, that the undervaluation of Korean stocks is an unreasonable abnormality, and that restoring market trust is the urgent task. About 50 participants from the government, the National Assembly, financial institutions and businesses attended.
Lee set out several specific demands. He said hostile takeovers are the most powerful mechanism for normalizing the market, that Korean society harbors hostile feelings toward them, and that he has ordered a full review of regulations that block them. He said listed companies in which major shareholders hold more than half the shares, or whose free float is under 10 percent, should be delisted, and he ordered the swift creation of a high-level capital-market reform task force, bringing together the National Assembly, financial regulators, the exchange and private-sector experts and reporting directly to the president, to speed legislation and administrative measures. He also said he has instructed the authorities to crack down strictly on unfair practices such as stock-price manipulation.
Korea Exchange Chairman Jeong Eun Bo told the meeting the exchange is studying a requirement that listed companies hold an investor briefing at least once a year throughout their listing. The Financial Services Commission said it would reflect the views expressed at the meeting in future capital-market policy.
The meeting came after months of sharp swings in Korean stocks. The benchmark KOSPI set a record close of 9,114.55 in late June and has since fallen back to the mid-5,000s. Lee acknowledged that he had let his guard down last year when the market seemed to be doing well, and said he would personally see to it that the reforms are completed as quickly as possible.
Source: Korea Exchange
Published by GSM · USA (original Chinese edition)
Photo: 图：韩国总统李在明（资料图）。照片 CC BY-SA 2.0，经 Wikimedia Commons。 / Photo: South Korean President Lee Jae Myung (file photo). CC BY-SA 2.0, via Wikimedia Commons.
