Financial market jitters in South Korea are growing as the Middle East war drags on, pushing oil prices higher and strengthening the dollar. The won has risen above 1,500 per dollar, near the highest level in about 17 years, while foreign outflows add to volatility in the KOSPI. Separately, banks, internet-only lenders and fintech platforms are intensifying competition for sole proprietor refinancing loans as infrastructure opens up.

South Korean President Lee Jae-myung (이재명) said he will work to end the chronic undervaluation of domestic shares known as the \"Korea discount\" and shift to a \"Korea premium\" era. Chairing a meeting at the presidential office, he discussed capital market reforms focused on improving corporate governance and market transparency. He said stock manipulation would be punished severely, including confiscating cash used, and illegal gains would be fully recovered.