(LEAD) Lee urges capital markets to embrace crisis as opportunity to advance reforms

▲ President Lee Jae Myung speaks during a meeting at the presidential office Cheong Wa Dae in Seoul on March 18, 2026, to review ways to reform and stabilize the country's capital markets. (Yonhap)

▲ President Lee Jae Myung (C) speaks during a meeting at the presidential office Cheong Wa Dae in Seoul on March 18, 2026, to review ways to reform and stabilize the country's capital markets. (Yonhap)

(LEAD) Lee-capital markets

(LEAD) Lee urges capital markets to embrace crisis as opportunity to advance reforms

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By Yi Wonju

SEOUL, March 18 (Yonhap) -- President Lee Jae Myung on Wednesday called for efforts for the nation's capital markets to embrace worsening economic conditions, triggered by a prolonged war in the Middle East, as an opportunity to advance reforms.

Lee made the remarks as he presided over a meeting with investors and financial authorities to review ways to reform and stabilize the country's capital markets in the wake of increased market volatility caused by escalating tensions in the Middle East.

"It is precisely in times of such crisis that we must carry out the necessary reform," he said, noting that domestic stock prices have plunged and fluctuated due to the recent conflict in the region. "That is the path to prepare for a fresh start."

He also noted that South Korea's stock market has long been undervalued due to geopolitical risks and security uncertainties surrounding the Korean Peninsula, which he claimed were often exaggerated.

"As verbal threats are exchanged along the armistice line that even leads to a shooting, people begin to worry whether another war might break out," he said. "But this has been exaggerated to a great extent."

"Korea can move from a 'Korea discount' to a 'Korea premium' depending on what we do," he added.

Lee explained the undervaluation of South Korean assets largely stems from four factors, including weak corporate governance, unfair practices in the stock market such as price manipulation, geopolitical risks on the Korean Peninsula and policy unpredictability.

Wednesday's meeting was attended by Financial Services Commission Chairman Lee Eog-won and Lee Chan-jin, governor of the Financial Supervisory Service, as well as investors and representatives of companies listed on the KOSDAQ and KONEX index.

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