Stock prices are concerned about overheating, and investors should be wary of politicizing the securities market - South Korean media

Concerns are growing about overheating in the Korean stock market. The KOSPI has risen nearly 70% since the beginning of the year, the highest increase rate among major countries.
Investments with loans from these sources are also booming. In this situation, the government and political circles are showing signs of fueling the overheating, which is a cause for concern. No one knows how far stock prices will rise.
The New York Stock Exchange, which had been a hot topic, is also being held back by the AI bubble theory. The Korean stock market was also affected and weakened last week. It will not be easy for the KOSPI to surpass 5,000.
The key is whether or not they can carry out structural reforms that will change the economic structure, even if it takes time and involves pain. The Democratic Party, along with the Lee Jae-myung administration, is offering a "Korea discount"
The amendment to the Commercial Code, which strengthens the authority of shareholders and restricts arbitrary management by management, has acted as a positive factor for the rise in stock prices.
The third amendment bill, which requires the taxpayer to pay dividends, is also expected to be passed soon. A proposal to tax dividend income separately and lower the maximum tax rate to 25% is also being advanced in the ruling party council. The US-Korea tariff negotiations were also triggered by last week's announcement.
The government and ruling party played a major role in this significant rise in the KOSPI this year. However, there are concerns about the ruling party's interest in stock prices.
The Democratic Party of Korea has launched a "KOSPI 5000 Special Committee" within the party. At a party leadership meeting late last month, applause erupted in celebration of the KOSPI surpassing 4000. A few days later,
When the index fell below 4,000 during the recession, the government requested that the word "collapse" be refrained from. In an interview, a high-ranking government official said that the investments made with borrowed money were "too much."
It's been criticized, but it's a form of leverage." In this situation, there have even been reports that the National Pension Service is considering raising the limit on domestic stock holdings.
If the pension fund is able to flexibly change its asset allocation ratio, it should be able to make such a decision on its own, without external interference. The National Pension System is responsible for the retirement of the people.
This is because, in the end, it is fundamentals that drive up stock prices. If potential growth rates increase through labor, fiscal, pension, and education reforms, pension funds will increase their purchases of domestic stocks.
We must be wary of the politicization of the securities market aimed at local elections.