President Lee Jae‑myung said the South Korean stock market remains slightly undervalued and plans to use excess tax revenue for future-generation investments [1].
This strategy aims to strengthen the national economic foundation by leveraging the current semiconductor boom to fund long-term growth potential [2]. By addressing the perceived undervaluation of domestic shares, the administration seeks to stabilize the economy and secure financial longevity for public systems.
Lee said that he believes the market is still slightly undervalued [3]. He said that if normalization measures for the stock market are implemented, the KOSPI could exceed 5,000 points [1], even without accounting for the specific advantages of the semiconductor boom.
The president also linked stock market performance to the stability of the National Pension Service. He said there have been media reports indicating that rising stock prices have extended the depletion date of the national pension by 24 years [1].
To achieve these goals, the government intends to direct the surplus tax revenue generated from the semiconductor industry toward investments that benefit future generations [2]. This approach is designed to transform temporary industrial gains into permanent economic structural improvements, ensuring that the current tech surge provides a lasting benefit to the country's youth and overall fiscal health [2].
“"I still think it is slightly undervalued."”
The administration is attempting to decouple South Korea's economic future from a total reliance on the semiconductor cycle. By pivoting windfalls from the chip industry into broader growth investments and pushing for a higher stock market valuation, the government aims to solve the chronic 'Korea Discount' and mitigate the looming insolvency of the national pension system.
