Latest news with #LeeJae-myung
Korea Herald
6 hours ago
- Business
- Korea Herald
Kospi closes above 3,020 for first time in 3 1/2 years
Postelection optimism fuels sharp rally, lifting hopes of a market renaissance The Kospi did not just return — it roared back. On Friday, South Korea's benchmark index surged past the long-awaited 3,000 mark and kept climbing, closing at 3,021.84, up 1.48 percent from the previous session. It was the first time the Kospi ended above 3,020 since Dec. 28, 2021. The rally seemed modest at the start, with the index opening just 0.29 percent higher at 2,986.52. Retail investors led early gains with net buying, while foreigners and institutions sold into strength, keeping the benchmark tightly anchored below the key level. That restraint vanished once the Kospi cracked 3,000 around 10:45 a.m. Momentum took over, lifting the index past 3,010 by 11:20 a.m. The market stayed buoyant throughout the afternoon, hovering near 3,010, before accelerating again in the final minutes of trading. The Kospi hit an intraday peak of 3,022.06 just before the close, settling near the high of the day. It was a historic session: Not only did the Kospi reclaim the 3,000 level for the first time since January 2022, but total market capitalization hit a record 2,472 trillion won. According to the Korea Exchange, the Kospi first crossed the 3,000 mark on Jan. 7, 2021, peaking at 3,305 in July that year. But post-COVID-19 momentum faded amid a global slowdown and recession fears, pushing the index into a prolonged slump. For much of the past year, it remained trapped in a narrow range between 2,200 and 2,800. Gains were broad-based, with most of the Kospi's top market heavyweights finishing higher. SK hynix and LG Energy Solution each rose more than 4 percent, while Naver surged nearly 7 percent. Hyundai Motor climbed 1.5 percent and Samsung Biologics added 1.7 percent. The tech-heavy Kosdaq also posted solid gains, rising 1.15 percent to close at 791.5. Institutional and foreign investors bought a combined 84 billion won, offsetting retail selling. Friday's milestone extends a two-week honeymoon rally under President Lee Jae-myung's new administration, reinforcing renewed investor confidence despite external headwinds, including Middle East tensions and lingering tariff risks. The Kospi has staged a near-unbroken rally since June 2, the eve of the general election, logging only one down day on June 13. After crossing the 2,700 mark on Lee's first full day in office, the index has jumped 12 percent, buoyed by expectations for policy reform and pro-growth momentum. 'The Kospi reversed course earlier this year as dip-buying resumed and the Trump administration announced tariff deferrals, with the rally gaining further traction around the presidential election,' the Korea Exchange said. 'The launch of the new administration has eased political uncertainty and lifted sentiment on expectations of market-friendly policies.' Analysts say the market is responding sharply to government signals. 'The Kospi's strength is being driven more by expectations of capital market reform and a valuation rerating than by earnings growth,' said Kang Jin-hyeok, analyst at Shinhan Securities. He added that Friday's rally reflected investor optimism following Thursday's unveiling of a 30.5 trillion won ($22.3 billion) supplementary budget. "This, combined with expectations of one or two additional rate cuts later this year, is fueling hopes for increased liquidity in the market.' Market watchers expect momentum to persist, brushing aside concerns of postelection fatigue. 'If current earnings trends hold, the Kospi could reach 3,100 by year-end,' said Noh Dong-kil, strategist at Shinhan Securities. 'And if rising liquidity drives a further rerating in valuations, the index could climb as high as the 3,400 range.' 'Despite the rally, Kospi's valuation remains at a neutral level," said Lee Soo-jung of Meritz Securities, adding, "With stimulus measures such as the supplementary budget and revisions to the Commercial Act upcoming, there's a strong possibility of an overshoot in the Korean stock market.' Lee anticipated foreigners to remain key drivers. After nearly 10 months of net selling, foreign investors turned net buyers in May, purchasing 1.2 trillion won, followed by an additional 5.3 trillion won in June. They remain net sellers of 8 trillion won year-to-date. Still, caution lingers as external risks and a slowing domestic economy continue to pressure sentiment. 'Despite strong policy momentum and supportive catalysts unique to the Korean market, broader fundamentals and external risks — such as weak earnings prospects, trade tensions and geopolitical instability — should not be overlooked,' said Han Ji-young, strategist at Kiwoom Securities. 'A breakout above 3,100 this year is possible, but navigating volatility will be crucial at those levels.'
AFP
7 hours ago
- Politics
- AFP
G7 pictures misrepresented to claim South Korean president was snubbed
"(Lee Jae-myung) can't be seen in the G7 leaders' group photo, even with invited countries," reads a Korean-language post shared June 17, 2025 on Facebook. Another post shares a different picture with a similar . Image Screenshots of the false Facebook posts captured June 19, 2025, with orange X's added by AFP Lee attended the G7 Summit in Kananaskis, Alberta from June 15-17 at the invitation of the summit's host, Canadian Prime Minister Mark Carney (archived here and here). South Korea was one of seven non-member countries invited to participate in sessions on global issues, including economic security, artificial intelligence and climate cooperation. Lee also held bilateral talks with Japanese Prime Minister Shigeru Ishiba and other leaders during the summit (archived link). Other posts on Threads and South Korean forums such as Ilbe made similar claims, suggesting Lee was not recognised as an official invitee -- a falsehood AFP previously debunked. Comments indicate some users believe Lee's absence from the pictures shows he was not formally invited. "Of course they wouldn't let an observer enter the group photo," one user commented. Another wrote: "What a national embarrassment, going all the way there just to be pulled out of a group photo." The first photo in the false post was taken during a meeting of G7 finance ministers and central bank governors held in late May in Banff, Alberta -- weeks before the summit of national leaders (archived link). A picture captured May 21 by the Italian NurPhoto shows the same scene. It does not feature the barrel seen in the false post, which appears to be a reference to far-right allegations surrounding the death of past associates to Lee (archived link). Image Screenshot comparison of the false post with an orange X added by AFP (L) and the NurPhoto picture of the G7 finance ministers' meeting The Canadian G7 presidency also published the photo on the meeting's website (archived link). second photo in the false posts shows a picture consisting only of leaders from the European Union and G7 member states -- including Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. South Korea is not a member of the G7, so Lee was not expected to appear in the photo. AFP distributed a picture of the same scene with a caption saying it shows the group's "family photo". Image Screenshot comparison of the false post with an orange X added by AFP (L) and the G7 leaders' group photo It matches the leaders' photo published on Canada's G7 website (archived link). Lee was photographed June 17 alongside other invited "outreach partner" country leaders, including those from Brazil, India and South Africa. Image Lee in a group picture with other leaders at the G7 summit (GETTY IMAGES NORTH AMERICA / POOL) AFP footage of the photo being taken also shows Lee on stage with other . (AFPTV / Daphné LEMELIN, Cecilia SANCHEZ) South Korean and news outlets published similar photos (archived here, here and here).
UPI
a day ago
- Politics
- UPI
G7 Summit: South Korea, Japan take step toward renewed ties
1 of 2 | South Korean President Lee Jae-myung (R) and his wife, Kim Hye-kyung, board Air Force One for the G7 Summit in Canada. Lee later held his first bilateral summit with Japanese Prime Minister Shigeru Ishiba. Photo by Thomas Maresca/UPI | License Photo SEOUL, June 18 (UPI) -- South Korean President Lee Jae-myung and Japanese Prime Minister Shigeru Ishiba held their first bilateral summit Tuesday on the sidelines of the G7 meeting in Kananaskis, Alberta, Canada,-marking a cautious but notable step toward resetting long-strained relations between the two neighboring countries. While bilateral ties had improved significantly under the previous South Korean administration through closer security and diplomatic coordination, this meeting was closely watched as an early signal of of how President Lee might approach the relationship going forward. Lee, whose prior remarks on Japan drew criticism from Japanese conservatives, signaled a shift toward a more pragmatic diplomatic posture during the meeting. His tone in Kananaskis suggested a willingness to move forward with Japan despite longstanding tensions. While both leaders expressed optimism about building a "future-oriented partnership," concrete outcomes may emerge as talks continue. Historical grievances, particularly unresolved matters such as wartime forced labor, continue to cast a shadow over the relationship. Lee reaffirmed South Korea's stance on these issues, emphasizing the importance of national sentiment and historical accountability. At home, his administration must also navigate a politically divided landscape, as public opinion in South Korea remains deeply sensitive to issues related to historical disputes with Japan. While the meeting carried clear symbolic weight, the path forward will depend on whether the two governments can translate goodwill into sustained diplomatic progress. The coming months will reveal whether this summit marks the continuation of recent momentum or simply a fleeting moment of diplomatic engagement.
a day ago
- Politics
Many in Japan Concerned about Ties with South Korea: Jiji Poll
News from Japan Politics Jun 19, 2025 18:16 (JST) Tokyo, June 19 (Jiji Press)--Many people in Japan are concerned about the outlook for relations with South Korea under new South Korean President Lee Jae-myung despite his efforts to play down his hard-line attitude toward Japan since taking office, a Jiji Press survey showed. Only 4.2 pct of respondents said they think that ties between Japan and South Korea will improve, while 31.2 pct said that relations between the two countries are likely to worsen. The survey showed that 47.9 pct said the bilateral relationship will not change, and those who were unsure accounted for 16.6 pct. Lee, who had taken a tough stance toward Japan, has adopted a future-oriented approach. On Tuesday, Japanese Prime Minister Shigeru Ishiba and Lee had their first in-person meeting in Canada on the sidelines of a Group of Seven summit, reaffirming their commitment to continuing shuttle diplomacy, or mutual visits to each other's country. [Copyright The Jiji Press, Ltd.] Jiji Press
Straits Times
a day ago
- Business
- Straits Times
South Korea drafts second extra budget as new leader seeks to spur growth
The biggest spending will be President Lee Jae-myung's flagship policy of a universal cash handout scheme for consumers. PHOTO: AFP South Korea drafts second extra budget as new leader seeks to spur growth SEOUL - South Korea's new administration on June 19 proposed 20.2 trillion won (S$18.84 billion) of extra government spending to support sluggish domestic demand, as President Lee Jae-myung makes economic recovery his top policy agenda. The supplementary budget plan totalling 30.5 trillion won (S$28.47 billion) announced by the finance ministry includes 20.2 trillion won of new spending to spur economic growth and support vulnerable sectors, while it will also make up for 10.3 trillion won from an expected shortfall in tax revenue. The second extra budget of the year comes two weeks after Mr Lee, who has vowed expansionary fiscal policy, won a snap presidential election on June 3 and less than two months since the first supplementary budget of 13.8 trillion passed in May. "Economic conditions and difficulties in people's livelihoods are very serious, and this extra budget means government finances will play a little more active role," Vice-Finance Minister Lim Ki-keun told a media briefing. South Korea's central bank in May slashed its economic growth forecast for this year to 0.8 per cent from 1.5 per cent, citing heightened uncertainty over US. tariffs, as it lowered interest rates for a fourth time in its current easing cycle and signalled more rate cuts. Asia's fourth-largest economy unexpectedly contracted in the first quarter amid US President Donald Trump's sweeping tariffs and domestic political turmoil sparked by former President Yoon Suk Yeol's martial law decree in December. The biggest spending will be Mr Lee's flagship policy of a universal cash handout scheme for consumers, providing 150,000 - 500,000 won in vouchers to every citizen and totalling 10.3 trillion won. Mr Lee was one of the first to introduce a cash handout scheme in South Korea when he was mayor of Seongnam City, which was adopted nationwide several times during the Covid-19 pandemic under the previous liberal administration of Mr Moon Jae-in, even as critics questioned the effectiveness of the policy. Other spending plans include financial support for the construction sector, investment in artificial intelligence as well as small and medium-sized enterprises, and debt restructuring programmes for small businesses. Out of the combined total of 30.5 trillion won, 19.8 trillion won will be financed by issuing additional treasury bonds, according to the finance ministry. The second extra budget will raise the country's fiscal deficit to 4.2 per cent of gross domestic product (GDP) in 2025, up from the previous estimate of 3.3 per cent after the first extra budget, and government debt to 49.0 per cent of GDP, from 48.4 per cent. The government will submit the proposal to Parliament, controlled by the left-leaning ruling Democratic Party, on June 23. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
