South Korea's Kospi soars to record high as reforms target 'Korea premium'
South Korea's benchmark Kospi index hit a record high this week, closing at 6,307.27 points. President Lee Jae Myung has now pledged further reforms to strengthen the stock market today and lift undervalued Korean shares.
The Kospi first broke the 6,000-point barrier on 22 September 2025, driven by strong gains in chipmakers and automakers like Samsung Electronics. By Thursday, it reached a fresh peak, marking a sustained rally.
President Lee described the market's performance as a step toward 'normalisation' and called the shift from real estate to productive finance an 'unavoidable trend'. His goal is to turn the long-standing 'Korea discount'—where shares trade below global peers—into a 'Korea premium'.
The government has already taken steps to improve transparency and reduce irrational market practices. Recently, the National Assembly passed an amendment to the Commercial Act, requiring listed companies to cancel treasury shares. This change aims to increase shareholder returns and support higher valuations.
Lee also promised to redirect capital away from property speculation and into productive investments. His administration sees this as key to sustaining the stock market's upward momentum.
The latest reforms target greater market efficiency and higher shareholder returns. With the Kospi at an all-time high, officials are pushing for policies that ensure long-term growth. The focus now shifts to whether these measures will solidify Korea's position as a premium investment destination.
