President Lee Jaemyung: "Reviewing Additional Measures to Normalize the Stock Market"... Comprehensive Report Expected Soon

The Stock Market Remains Undervalued
"Respecting Shareholders and Improving Corporate Governance Remain Challenges"
After Sharp Market Drop, "Correction Is Unavoidable"... Government Rules Out Direct Intervention
On Real

President Lee Jaemyung said on the 19th that he would receive a comprehensive report soon and consider additional policy measures to normalize the stock market. He described the recent sharp market decline as an unavoidable adjustment and ruled out direct government intervention, while saying the government would continue policy efforts to improve corporate governance and ensure market transparency. On the real estate market, he cautioned against speculative demand fueled by excessive borrowing and stressed normalizing housing supply after 2028, protecting people buying homes for their own use, and ensuring tax fairness for investment properties.

President Lee Jaemyung speaks with reporters in the lobby of Chun Chugwan, the press center at Cheong Wa Dae, on Oct. 19, 2026. Yonhap News.

"Stocks Remain Undervalued"... Additional Policy Review Ahead

At a coffee chat with reporters at Chun Chugwan in Cheong Wa Dae marking his 500th day in office, President Lee said of the recent sharp decline in the stock market, "We are continually checking what policy measures are needed to normalize the stock market," adding, "I will receive a comprehensive report soon and take any necessary measures."

President Lee said he believes the Korean stock market remains undervalued. Citing corporate governance, a lack of market transparency, geopolitical risks, and uncertainty over industrial and economic policy as reasons for the undervaluation, he said, "Uncertainty around industrial and economic policy has improved considerably, but distrust of the market and corporate governance does not appear to have been completely eliminated."

He identified establishing a culture of respect for shareholders and preventing the abuse of control and managerial rights as outstanding tasks. He said that his instruction to the newly established Serious Crimes Investigation Agency to respond firmly to white-collar, securities, and financial crimes was also connected to restoring confidence in the capital market.

However, he opposed artificial government stimulus measures in response to the market’s sharp decline. "When prices rise a lot, some correction is inevitable," President Lee said. "The stock market cannot keep moving in one direction indefinitely." He added, "It is difficult for the government to intervene directly in the financial and securities markets, and doing so would not be desirable."

The KOSPI recently underwent a sharp correction, plunging more than 7% on October 15. On the 19th, it fell more than 3% early in the session before turning higher, closing at 5,768.01, up 1.76% from the previous trading day. President Lee said he had been concerned about rapid stock price increases as well, noting that he had followed the stock market for more than 20 years and had invested directly.

Comparing the progress of market reform to the process of clearing a rocky field for cultivation, President Lee said, "We are at the stage of removing a few large rocks." He added, "I think the stock market, too, will regain trust and find its proper place through this process of correction."

In Real Estate, "Who Will Be Left Holding the Last Bomb?"... Fairness Key to Taxation of Property Investment

President Lee Jaemyung meets with reporters in the lobby of Chunchugwan at the Blue House, where journalists work. 2026.10.19 Yonhap News Agency

On the real estate market, he cautioned against the impact of sharp price fluctuations. "The idea that you can make money by borrowing to buy a home has been ingrained in people’s minds for far too long," President Lee said. "Is it wise to borrow beyond your means to buy a home just to make money?"

He also pointed to the wide long-term fluctuations in property prices and described a concern in the market: "An accident will happen eventually. Who will be left holding the last bomb?" However, he refrained from directly predicting whether home prices would rise or fall.

He acknowledged that the side effects of lending restrictions may need to be addressed. Citing cases in which buyers with existing housing purchase contracts were unable to secure interim-payment or final-payment loans, he stressed, "Government policy needs to be more finely calibrated." The aim, he said, is to curb speculative demand while minimizing harm to people buying homes for their own use.

Regarding housing supply, he said the effects of a sharp decline in permits and construction starts since 2022 are now being felt, and forecast that "supply will return to normal properly after 2028." According to the Ministry of Land, Infrastructure and Transport, housing permits and construction starts in Seoul rose 74% and 45%, respectively, from March through August this year compared with the same period last year, but a considerable time lag before homes are actually occupied is inevitable.

On real estate taxation, he emphasized tax justice. President Lee raised the issue of fairness, noting that while income from labor and general investments is taxed, real estate investment receives relatively generous tax benefits. He reiterated that while exceptions should be made for homes used as a primary residence, tax benefits for properties acquired for investment should be reconsidered.

This content was produced with the assistance of AI translation services.