South Korean Stock Market Surges into the 8000-Point Era: Expert Says Commercial Law Revisions Are Key
South Korea's KOSPI index has surpassed the 8,000-point mark, driven by a rapid stock market rally. Kim Se-hwan, head of the Korea Capital Market Institute, attributes this surge to the Lee Jae-myung administration's three revisions of the Commercial Law, which strengthened shareholder protection and revitalized the market.
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- 📰 Published: June 10, 2026 at 19:45
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(Central News Agency, Seoul, 10th, exclusive) The South Korean stock market has shown strong performance over the past year, with the Korea Composite Stock Price Index (KOSPI) breaking through the 8,000-point mark. Kim Se-hwan, President of the Korea Capital Market Institute, stated that the main reason is the three amendments to the "Commercial Act" by the Lee Jae-myung administration that took office last year. He emphasized the crucial role of the government and expressed hope for maintaining consistent policies.
Kim Se-hwan, President of the Korea Capital Market Institute, attended a press conference for foreign media today to analyze the strong performance of the South Korean stock market over the past year. According to data from the Korea Capital Market Institute, compared to the baseline when the Lee Jae-myung administration took office in June last year, the KOSPI index has surged by 225.6%, and the KOSDAQ index has also increased by 41.8%.
President Kim explained that for over 20 years, the South Korean stock market has suffered from a "Korea Discount" phenomenon. He stated, "Simply put, under the same environment and conditions, South Korean stock prices have been relatively undervalued, especially when compared to the US market." For years, the KOSPI had been stuck in the 2000-point range.
However, President Kim noted that a dramatic change has occurred since the Lee Jae-myung administration took office in June last year. The index broke through the 4,000-point mark in November last year, then reached 5,000 points within three months, and broke through 6,000 points one month later. It then surpassed 7,000 points within two months, and finally, in just 19 days, it broke through the 8,000-point mark in May.
President Kim pointed out that the main reason is the three amendments to the "Commercial Act." "Compared to other countries, amending the Commercial Act in South Korea is extremely difficult," he said. He noted that over the past 20 years, the law had been amended only twice, but the Lee Jae-myung administration has made three amendments in just one year since taking office.
President Kim explained that the revisions aim to protect minority shareholders from being controlled or harmed by major shareholders and to increase the independence of board members. "In the past, all board members of some companies had to be led by major shareholders, but now they have become quite independent. The law has shifted towards protecting minority shareholders."
After the revisions, President Kim stated that the strong performance of major domestic companies like Samsung Electronics and SK Hynix has provided robust support for the stock market rally.
Regarding the future of the South Korean stock market, President Kim pointed out that the government's role is very important to maintain the overall market conditions. It must continue to strengthen investor protection policies and maintain a consistent policy direction. President Kim also mentioned that from a corporate perspective, it is necessary to establish an effective corporate governance structure, enhance innovation and competitiveness, efficiently allocate capital, and expand transparent communication. (Editor: Chen Huiping) 1150610
Kim Se-hwan, President of the Korea Capital Market Institute, attended a press conference for foreign media today to analyze the strong performance of the South Korean stock market over the past year. According to data from the Korea Capital Market Institute, compared to the baseline when the Lee Jae-myung administration took office in June last year, the KOSPI index has surged by 225.6%, and the KOSDAQ index has also increased by 41.8%.
President Kim explained that for over 20 years, the South Korean stock market has suffered from a "Korea Discount" phenomenon. He stated, "Simply put, under the same environment and conditions, South Korean stock prices have been relatively undervalued, especially when compared to the US market." For years, the KOSPI had been stuck in the 2000-point range.
However, President Kim noted that a dramatic change has occurred since the Lee Jae-myung administration took office in June last year. The index broke through the 4,000-point mark in November last year, then reached 5,000 points within three months, and broke through 6,000 points one month later. It then surpassed 7,000 points within two months, and finally, in just 19 days, it broke through the 8,000-point mark in May.
President Kim pointed out that the main reason is the three amendments to the "Commercial Act." "Compared to other countries, amending the Commercial Act in South Korea is extremely difficult," he said. He noted that over the past 20 years, the law had been amended only twice, but the Lee Jae-myung administration has made three amendments in just one year since taking office.
President Kim explained that the revisions aim to protect minority shareholders from being controlled or harmed by major shareholders and to increase the independence of board members. "In the past, all board members of some companies had to be led by major shareholders, but now they have become quite independent. The law has shifted towards protecting minority shareholders."
After the revisions, President Kim stated that the strong performance of major domestic companies like Samsung Electronics and SK Hynix has provided robust support for the stock market rally.
Regarding the future of the South Korean stock market, President Kim pointed out that the government's role is very important to maintain the overall market conditions. It must continue to strengthen investor protection policies and maintain a consistent policy direction. President Kim also mentioned that from a corporate perspective, it is necessary to establish an effective corporate governance structure, enhance innovation and competitiveness, efficiently allocate capital, and expand transparent communication. (Editor: Chen Huiping) 1150610
FAQ
What is the main reason for KOSPI breaking through 8,000 points?
The main reason is the Lee Jae-myung administration's revision of the Commercial Law, which strengthened minority shareholder protection and board independence, revitalizing the stock market.
What is the 'Korea Discount' in the South Korean stock market?
It is a phenomenon where South Korean stocks are undervalued compared to others like the US, with the KOSPI stuck in the 2000-point range for years.
What are the specific contents of the Commercial Law revision?
It aims to protect minority shareholders from major shareholders and increase board independence. It was amended only twice in 20 years but three times in one year under the Lee administration.