Lee vows one-strike rule against stock manipulation

President Lee Jae-myung announced on June 11 that his administration will adopt a one-strike-out policy for stock price manipulation and recover illicit profits, warning that “anyone who plays games in the Korean stock market will be utterly ruined.” The KOSPI closed above 2,900 for the first time in three years and five months, extending its upward trend under Lee’s leadership.

In his first official field visit since taking office, Lee visited the Market Surveillance Committee of the Korea Exchange in Yeongdeungpo, Seoul, where he met with executives and staff. He said stock manipulation would no longer be a means of profit under his administration, but a trigger for severe penalties. “Those who gain unfair profits will face heavy fines and be forced to return several times the amount they earned,” he said.

Presidential spokesperson Kang Yoo-jung said the new administration will introduce a one-strike-out policy for unfair stock trading practices, with violators facing strict penalties, including fines to reclaim ill-gotten gains. Lee also ordered a review of the Market Surveillance Committee’s structure and staffing.

The president also outlined plans to revitalize the stock market by promoting higher dividend payouts through aggressive incentives. “In other countries, people buy blue-chip stocks, receive interim dividends, use them for living expenses, and contribute to domestic demand, creating a positive economic cycle. But in Korea, dividend payments are too low,” he said. “We are preparing tax and institutional reforms to encourage dividend payouts.”

Lee said enhancing the appeal of equities as an alternative to real estate could help create a more balanced economic cycle.

Referring to a proposed amendment to the Income Tax Act submitted by Democratic Party lawmaker Lee So-young, the president said, “I’m not sure if simply cutting dividend taxes is the answer,” while adding, “If lowering the rate does not significantly impact fiscal revenue, it would be better to do so and encourage more dividends.” The bill would apply a separate, lower tax rate to dividend income from listed companies with a payout ratio of 35 percent or higher.

Lee also reaffirmed his campaign pledge to amend the Commercial Act to curb abuses of power by controlling and major shareholders.


윤다빈 기자 empty@donga.com