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FSC chief lays out plan to ban double listings, eradicate price manipulation

Published: 18 Mar. 2026, 19:20 Updated: 18 Mar. 2026, 19:25

SARAH KIM
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President Lee Jae Myung, center, speaks during a public-private roundtable to review measures to reform and stabilize capital markets at the Blue House in central Seoul on March 18. The roundtable included business executives, investors, experts and government officials. [JOINT PRESS CORPS]

Financial Services Commission (FSC) Chairman Lee Eog-won stressed on Wednesday that the government will eradicate stock price manipulation and ban double listings to create a capital market structure in which innovative companies can grow.

At a presidential roundtable on capital market stability and normalization at the Blue House in central Seoul, the FSC head laid out a plan to restrict publicly traded companies from listing certain subsidiaries, as such duplicate listings are perceived as contributors to shareholder value dilution and the "Korea discount," where local shares trade below their value, protecting shareholders' rights from the simultaneous listings.

He also outlined a plan to divide the Kosdaq market into two tiers — one for mature innovative companies and the other for growing companies. Financial authorities plan to disclose a list of companies with low price-to-book ratios (PBR) to encourage improvements in corporate value.

Lee said that to prevent companies from ignoring low share prices, authorities will use a "naming and shaming" method to encourage low-PBR companies to enhance share value.

Some 80 to 170 highly innovative companies ranking among the top in market capitalization will be placed in the first tier. Scale-up companies that have passed the initial startup stage will be in the second.

Lee said the plan is intended to "stimulate corporate growth and enhance market dynamism," while encouraging companies to increase their value by competing within the system. The FSC hopes this will enable individual investors to easily identify corporate value and stimulate a revitalization of Kosdaq investments by institutional investors.

Financial Services Commission Chairman Lee Eog-won, center, speaks about measures to stabilize capital markets at a public-private presidential roundtable at the Blue House in central Seoul on March 18. [JOINT PRESS CORPS]

The remarks came as President Lee Jae Myung presided over the roundtable attended by nearly 50 participants from the government and private sector including Lee Chan-jin, governor of the Financial Supervisory Service, as well as investors and representatives of companies listed on the Kosdaq and Konex, a securities exchange exclusively for small- and medium-sized enterprises.

"Stock prices have plummeted due to the recent war and are fluctuating," President Lee said in the meeting, referring to the market fallout from the conflict in the Middle East following U.S.-Israeli military attacks on Iran, and Tehran's retaliatory actions. "It is precisely during such times of crisis that we must successfully carry out necessary reform tasks."

The president highlighted that key factors that contribute to the "Korea discount" are corporate governance problems and abuse of management rights; unfair practices such as stock price manipulation; geopolitical risks on the Korean Peninsula; and the unpredictability of industrial policy.

He downplayed the geopolitical risks involving North Korea, noting that the "issue is much more exaggerated than the reality" and that the "political sphere has unnecessarily exploited it and amplified anxiety."

"Korea can move from a 'Korea discount' to a 'Korea premium' depending on how we handle this issue," President Lee said.

President Lee Jae Myung, left, listens as Financial Services Commission Chairman Lee Eog-won speaks at a public-private roundtable to review measures to reform and stabilize capital markets at the Blue House in central Seoul on March 18. [JOINT PRESS CORPS]

He also raised concerns about the transaction settlement cycle, where payments are made two business days after a stock transaction. Last year, the United States shortened its payment system by one day, from a "T+2" to a "T+1" settlement period.

Comedian Jang Dong-min attended the presidential capital market meeting as an individual investor and expressed hope that government policies will encourage credibility and trust.

"People like me tend to be easily swayed by fake news," Jang said, referring to the spread of disinformation online. "There are many instances where I watch YouTube on my own to figure out how much of the news we should trust and what safety measures exist."

"I hope that the government and experts will provide a foundation of trust, and that the belief that our capital market will move forward in this direction becomes stronger."

BY SARAH KIM [[email protected]]