Lee Jae-myung says he will assess and take necessary measures to normalize South Korea’s stock market
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AT A GLANCE
Lee Jae-myung said the South Korean government is assessing policies to normalize the stock market and will take necessary measures after hearing a comprehensive report.
Article
South Korean President Lee Jae-myung: Necessary measures will be taken to normalize the stock market
BlockBeats reported,October 19, according to Yonhap News Agency, regarding the recent stock market decline that significantly reduced the valuation of domestic South Korean stocks held by South Korea's National Pension Service, South Korean President Lee Jae-myung 19 stated on the day: “We are continuously assessing what policy measures are needed to normalize the stock market. We will soon hear a comprehensive report and take necessary measures.” Lee Jae-myung said: “After stock prices rise sharply, a correction is inevitable; as for the extent of the correction, no one knows. Unlike in the past, it is now difficult for the government to directly intervene in financial or securities markets, and doing so is not advisable.”
However, he noted: “The South Korean stock market is severely undervalued. One of the biggest reasons for this is that negative perceptions of market transparency and fairness have not yet been fully eliminated.” Regarding market trends and prospects, he said that the government is closely monitoring them. He said: “In the stock market, many people repeatedly tell themselves, ‘It will not fall, it will not fall,’ and ultimately end up trapped. We need to reduce such situations as much as possible.”
Original link https://m.theblockbeats.info/flash/372562
Key points
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BlockBeats said, citing Yonhap News Agency, that South Korean President Lee Jae-myung responded on October 19 to the recent stock market decline.
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The report noted that the recent stock market decline significantly reduced the valuation of domestic South Korean stocks held by South Korea’s National Pension Service.
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Lee Jae-myung said the government is continuously assessing the policy measures needed to normalize the stock market, will soon hear a comprehensive report, and take necessary measures.
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Lee Jae-myung said that a correction after a sharp rise in stock prices is inevitable, but no one knows the extent of the correction.
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Lee Jae-myung said that it is now difficult for the government to directly intervene in financial or securities markets, and that direct intervention is not advisable.
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Lee Jae-myung said the South Korean stock market is severely undervalued and believes that one important reason is that negative perceptions of transparency and fairness have not yet been fully eliminated.
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Lee Jae-myung said the government is closely monitoring market trends and prospects.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
The core of this news is that the South Korean government is considering ways to address the stock market decline, but has not yet specified which policies it will adopt. Lee Jae-myung believes on the one hand that the South Korean stock market is severely undervalued, while also warning that the extent of a market correction cannot be predicted and that direct government intervention in the market is both difficult and inadvisable.
Why it matters to readers
The government’s subsequent measures could affect market participants’ perceptions of the South Korean stock market; meanwhile, transparency and fairness were specifically identified, indicating that these issues are market factors of concern to the government.
Beginners should not interpret “necessary measures will be taken” as meaning that the stock market will inevitably rise. The original text also makes clear that no one knows the extent of the correction and that specific policies have not yet been announced.
Risks and unknowns
The specific measures the government will take have not yet been announced.
The content of the comprehensive report and the timing for hearing it remain unclear.
Whether the policies can normalize the stock market and their actual impact cannot be confirmed from the original text.
“The South Korean stock market is severely undervalued” is Lee Jae-myung's assessment; the original text provides no valuation data to support it.
Related Developments
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The news was reported by BlockBeats citing Yonhap News Agency; the original text does not include an official South Korean government document.
Related concepts
Stock market normalization
This term is not in the glossary yet. Browse related concepts in the glossary.
