Financial Services Commission Chairman Lee Eok-won (이억원) said a move above 5,000 points on the KOSPI was an “historic milestone” showing that the long-running “Korea discount” weighing on the country’s stock market is being resolved and it has entered a new phase.

Lee made the remarks in congratulatory comments at the 'KOSPI 5000 and Beyond' event held on Feb. 3 at the Korea Exchange in Yeouido, Seoul. “This breakthrough above 5,000 points symbolises that trust and expectations toward our economy and capital markets have risen by one level,” he said.

Lee named “fairness, shareholder value and innovation” as three core tasks for sustainable vitality in the capital market, and signalled a high-intensity overhaul.

He first stressed the “eradication of unfair trading.”

Lee said he would sharply raise the cap on rewards for reporting violations to encourage voluntary reports by insiders, whom stock price manipulators fear most.

He added that, at a more fundamental level, he would consult with relevant ministries on a plan to create a separate fund using illicit gains from unfair trading as its source. The fund would pay reporters “unprecedented” rewards in proportion to the scale of illicit gains.

He also pledged to establish a corporate management culture that raises shareholder value.

“I will establish a system in which ordinary shareholders are firmly protected across the capital market and can rightfully enjoy the fruits of corporate growth,” he said.

He also signalled a willingness to discover innovative companies and establish global standards.

Lee said he would build a dynamic stock market that continuously produces companies investors want to invest in through the National Growth Fund and by fostering future strategic innovation industries. He added he would strengthen investment incentives, including tax support, to complete a virtuous cycle in which companies and the public grow together.

“Breaking above KOSPI 5,000 is a new starting line and the point at which greater responsibility begins,” Lee said. “The government will steadily push ahead with policy so that the capital market can become a solid platform for each and every citizen to grow their assets,” he added.