Stocks soar from 'Korea discount' to 'Korea premium' under leftist president
Markets have shifted from a long-standing Korea discount to a perceived Korea premium under President Lee Jae-myung, a theme the article anchors in the title. On June 5, 2025, the Kospi stood at 2,831 points, and it closed at 8,124 on a recent Friday after earlier testing near 8,800 this month. The index had never cleared 3,300 before 2025 and hovered around 2,000 for decades, making the current surge remarkable. In dollar terms, the Kospi has outpaced major overseas indices since Lee took office roughly a year ago, with observers noting an unprecedented rise in developed markets and even a potential Guinness World Record in scope. Kim Sei-wan of the Korean Capital Market Institute described the rally as extraordinary and indicative of structural shifts in Korea’s equity landscape. The article attributes much of the momentum to a mix of AI-driven growth, cyclical factors, and a broad governance shift that strengthens shareholder rights. Three amendments to the Commercial Act have empowered shareholders against chaebol, with the first revision strengthening fiduciary duties for corporate officers. The Lee administration has revised the act three times, signaling a dramatic departure from the prior governance regime. The narrative emphasizes economic democratization and a regulatory environment that could sustain higher valuations, aided by improved investor confidence and a more leveled playing field for minority and foreign investors.
