President Lee Jae-myung expressed his willingness to introduce a “one-strike out system” to combat unfair stock trading practices. He made the announcement during a meeting at the Korea Exchange in Seoul on June 11th. The meeting focused on eradicating unfair stock market transactions.
President Lee emphasized the importance of establishing a fair and transparent market order. This would help revitalize the capital market and secure investors’ trust. “It is crucial to build a fair and transparent market order to bolster market trust,” President Lee stated.
He was addressing the Korea Exchange’s Market Monitoring Committee. In addition to the “one-strike out system,” President Lee called for improvements to swiftly detect unfair trading.
Crackdown on unfair stock trading
He urged for more resources and manpower to quickly investigate suspicious activities. “The new government plans to punish unfair trade actors by introducing a one-time strikeout system for activities such as stock price manipulation and the clawback of unfair profits,” explained Spokesman Kang. President Lee’s initiative shows the administration’s dedication to cracking down on market manipulation.
It aims to ensure a level playing field for all market participants. The president also highlighted the recent surge in the benchmark Korea Composite Stock Price Index (KOSPI). It has risen 5.81 percent since his inauguration a week ago.
This increase aligns with his election pledge to raise the index to 5,000 points. “If we can make stock investment a viable alternative to real estate, allowing citizens to receive interim dividends and earn living expenses, it will not only ease capital raising for companies but also create a virtuous cycle for the entire South Korean economy,” Lee said. Earlier that day, the KOSPI surpassed 2,900 points for the first time in three years and five months.
