South Korea's Democratic Party on Jan. 22 welcomed the KOSPI’s first-ever move above 5,000 and said it will speed up follow-up legislation, including a third revision to the Commercial Act.

Floor leader Han Byung-do (한병도) told a policy coordination meeting at the National Assembly that it was a record 46 years after the KOSPI’s launch. He said it was proof that since the launch of the Lee Jae-myung government, South Korea is moving beyond normalization toward a major transformation and leap forward.

Han said reaching 5,000 was not the end, but part of a process to remove the widespread Korea discount and normalize the capital market. He stressed tougher punishment for stock manipulation, mandatory cancellation of treasury shares and shareholder-friendly systems, saying he would open an era of 6,000 and 7,000 on the KOSPI together with the public.

Policy committee chair Han Jung-ae (한정애) said that as if in response to the five major transformation growth strategy for South Korea’s big leap forward, the KOSPI broke through 5,000 on the day. She said all priorities in state administration will be readjusted and the government’s resources and capabilities will be fully redeployed so the party and government become a “one team” and pour in all capabilities.

Party leader Jung Cheong-rae (정청래) wrote on Facebook that the dream of the KOSPI 5,000 era will come true. He wrote: “Let’s go together for the success of the Lee Jae-myung government and an era of public happiness.”

Yu Dong-soo (유동수), the senior deputy chair of the party’s policy committee, called it a historic moment in which President Lee Jae-myung’s campaign pledge became reality. He stressed it was not the end and that the achievement must translate into people’s livelihoods.

Jeon Yong-gi (전용기), the deputy floor leader for communications, said the Lee Jae-myung government set a milestone for a capital-market transformation in which corporate performance is fairly valued and capital stays in the country, through the KOSPI’s move above 5,000.

Park Hong-bae (박홍배), a lawmaker and member of the party’s KOSPI 5,000 special committee, said the result showed the market’s clear assessment of the government’s direction, which has focused on institutional reforms to resolve political uncertainty and correct the Korea discount.

Park added that what comes next is more important. He said tasks to improve corporate governance and restore investor trust, including the upcoming third revision to the Commercial Act, will be pursued without a hitch.

At the same time, some voiced concerns about the exchange rate continuing to run high alongside the rise in the KOSPI.

Ahn Do-geol (안도걸), a member of the National Assembly’s Strategy and Finance Committee and the party’s KOSPI 5,000 special committee, said the current situation is not a normal combination as the asset market is strong but the exchange rate continues to run high. He asked the government to take comprehensive steps to stabilize the exchange rate.