As the KOSPI broke through the 5,000 level intraday on the 22nd, the returns on exchange-traded funds (ETFs) tracking the Korean stock index, investments made by President Lee Jae-myung, have also surged dramatically.
While campaigning as a presidential candidate on May 28 last year, President Lee pledged to usher in a “KOSPI 5,000 era” and invested 40 million won in domestic ETFs. He also announced plans to invest an additional 1 million won every month for five years, ultimately purchasing 100 million won worth of ETFs in total.
At the time, President Lee revealed his investment portfolio during a YouTube broadcast, consisting of ETFs tracking the KOSPI 200 and KOSDAQ 150 indices, emphasizing his commitment to revitalizing the domestic stock market.
The ETFs he purchased were KODEX 200 and KODEX KOSDAQ 150. According to Yonhap Infomax, as of the closing price on the 21st, KODEX 200 recorded a 103.27% gain since his purchase, while KODEX KOSDAQ 150 rose 31.40% over the same period.
When simply combined, President Lee’s unrealized ETF gains are estimated to exceed 27 million won.
Previously, the Presidential Office disclosed that as of September 18 last year, Lee’s ETF gains stood at 11.6 million won, corresponding to a 26.4% return, when the KOSPI closed at 3,461.30.
President Lee stated, “I will increase the attractiveness of investing in the Korean stock market by redirecting funds concentrated in real estate into equities,” adding, “Until the day I leave office, I will strive together with 14 million individual investors to achieve a KOSPI 5,000.” This statement was conveyed by Presidential Office spokesperson Kang Yoo-jung.
Source: https://www.mk.co.kr/news/stock/11940051
P.S. To combat housing crisis, President Lee Jae-Myung focused on vitalizing Korean stock market. He claimed that Korean stock market is heavily undervalued because of shady governance structure of Chaebols, making the excess capital to head to real estate market. He claimed that this excess capital in real estate market is the reason for housing crisis.
So, Lee and his DPK lawmakers passed landmark Chaebol reform bills to bring transparency to their corporate governance and establish fairness market competition. Combined with AI boom which greatly increased demand for semiconductor, it led to skyrocketing KOSPI.
Posted by Freewhale98
3 Comments
Really surprised by how amazing Korea is doing.
Interesting that they haven’t fallen into the Japan middle class trap despite falling birth rates and a more competitive China.
Hopefully we continue to see more wins.
I would say it’s 80% driven by memory shortage. Samsung and SK Hynix makes up over 40% of EWY etf and those two companies are on a tear due to incredible profit forecast.
Not to discount the efforts by the Korean government to reform the corporate governance, but I think that will mostly be a driving factor in long term growth and putting a floor on the stock prices.
Broke hoes mad