Lee calls for stern measures against unfair stock transactions

President Lee Jae-myung on Wednesday called for stern measures against stock manipulation and unfair trading practices to help restore investor confidence and revitalize the financial markets, his office said.

Lee stressed the importance of a “fair and transparent” market during his visit to the Korea Exchange, the nation’s bourse operator, a week after taking office, according to presidential spokesperson Kang Yu-jung.

“The government will take firm measures against unfair trading by adopting a ‘one strike, you’re out’ policy for activities, such as stock manipulation, and will confiscate illicit gains by imposing fines equivalent to the profits unfairly earned,” Kang told reporters.

He also noted that the benchmark Korea Composite Stock Price Index (KOSPI) has surged 5.81 percent since his inauguration a week ago, reaffirming 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 was quoted as saying.

Earlier in the day, the KOSPI surpassed 2,900 points for the first time in three years and five months.