SEOUL, June 12 (AJP) - President Lee Jae-myung has declared a crackdown on illegal stock trading, pledging to restore trust in South Korea's capital markets through stronger oversight and strict penalties.
During a meeting held at the Korea Exchange on Wednesday, the president warned that illegal profits in the market would not be tolerated under his administration. "If you try to play games in the South Korean stock market, you will lose everything," Lee said, adding: "If someone breaks the law and makes money,
Lee urged improvements to surveillance systems to detect new forms of market abuse and called for more staff to accelerate investigations. He also proposed freezing suspicious accounts and introducing a "one-strike-out" rule to deal decisively with major offenders.
Since Lee’s inauguration last week, the KOSPI has surged 5.81 percent, reflecting investor optimism. Lee cited this momentum as a reason to act boldly: "To build a vibrant capital market, we must ensure it’s fair and transparent."
He also laid out a broader vision to revitalize the market, describing it as a key driver of economic growth. "If we make the stock market a viable alternative to real estate investment, it will help people earn income and support businesses."
In a Facebook post later that evening, Lee reiterated his determination: "We will no longer allow anyone to profit through illegal means. If they do, they will be made to repay much more and face real consequences."
Lee also floated the idea of encouraging dividend payouts through tax incentives, saying he would explore ways to reward firms with fair shareholder practices without hurting public finances.
reporter
Park Sae-jin
swatchsjp@ajunews.com
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