Lee defends KOSPI rally, targets speculation

President Lee Jae-myung on Sunday brushed aside criticism that the recent rally in South Korea’s benchmark KOSPI index has been driven primarily by semiconductor stocks, responding with a soccer analogy: “If you take away Son Heung-min’s soccer ability, is he just an ordinary person?” Lee also renewed his pledge to curb property speculation, saying South Korea “must break free from the ruinous republic of unearned real estate income.”

Lee made the remarks in a post on X, formerly Twitter, while sharing an article titled “KOSPI at 4,100 Without Semiconductors.”

“Semiconductors are one of the core pillars of our economy. I do not understand why anyone would calculate the benchmark stock index excluding semiconductor companies,” he wrote. “If anything, the headline should be that South Korea’s stock market is still at 4,100 even without semiconductors.”

Earlier in the day, Lee shared a separate report on a rise in tips submitted to a National Tax Service reporting center established to combat tax evasion tied to real estate transactions.

“Illegal real estate speculation and tax evasion will no longer be tolerated,” he wrote. “We must break free from the ruinous republic of unearned real estate income.”

The report cited an analysis by the office of Rep. Cha Gyu-geun of the Rebuilding Korea Party, a member of the National Assembly’s Planning and Finance Committee. According to the analysis, the reporting center received 780 allegations of tax evasion during its first five months of operation, with about 80% originating from Seoul, Gyeonggi Province and Incheon.

Most of the allegations involved suspected real estate-related tax violations, including disguised gifts, nominee ownership, falsified contract prices and sham transactions.

Lee also asked officials during a Cabinet meeting on May 26 whether additional measures were being prepared to address the recent rise in home prices. The presidential office plans to review a broader package of housing measures, including possible tax revisions, after the June 3 local elections, depending on market conditions.

A presidential office official said simulations of potential real estate tax reforms have largely been completed at Lee’s direction. “Whether property-holding taxes and other measures are ultimately revised will depend on market conditions,” the official said.


윤다빈 기자 empty@donga.com