Loss-Driven Reform: How President Lee Jae-myung's Stock Investment Experience Is Changing KOSPI
President Lee Jae-myung lost his entire fortune day trading in his 30s, then 20 years later turned Korea's stock market into the world's best performer through shareholder-friendly policies. His ETF investment made as a campaign promise has returned 132%.
The Hook
A day trader who lost his entire fortune in his 30s became president 20 years later and transformed his failure experience into shareholder-friendly policies that made KOSPI the world's best-performing index.
TL;DR
- Bloomberg report: President Lee Jae-myung's day trading failure in his 30s → KOSPI 5000 achievement 20 years later
- KODEX200 ETF purchased as campaign promise returned 132% (May 2025 → February 2026)
- Shareholder-friendly policies including mandatory treasury stock cancellation and expanded director fiduciary duty resolved 'Korea Discount'
- KOSPI's 1-year return: 95%, additional 34% rise since year-start brings 6000 within sight
- Policy sustainability debate: "Encouraging speculation" vs "Structural reform success"
Facts: From Day Trader to Reform President
1990s: A Lawyer in His 30s Who Lost Everything
Bloomberg shed light on President Lee Jae-myung's past on February 23, 2026, with the headline "How Korea's President Turned Its Market Into the World's Best."[1] According to the article, President Lee plunged into day trading as a lawyer in his early 30s and lost his entire fortune.
A February 3, 2026 Kukmin Ilbo column titled "A President Who Knows Stocks Well" reported that President Lee publicly revealed his experience of becoming "prey for market manipulators." At the Blue House New Year press conference on January 22, 2026, President Lee stated, "What was distorted is finding its way back to normal," suggesting that his failure experience formed the foundation of his policy philosophy.[2]
May 2025: 'KOSPI 5000' Pledge and 40 Million Won ETF Purchase
As a presidential candidate, Lee announced a groundbreaking pledge on May 28, 2025, during a YouTube live broadcast. He promised a "KOSPI 5000 era" and revealed that he personally purchased 20 million won each of KODEX200 ETF and KODEX KOSDAQ150 ETF, totaling 40 million won.[3]
At the time, KOSPI was at the 3460 level. President Lee emphasized his long-term investment commitment, saying, "I will continue investing 1 million won monthly for 5 years, reaching a total of 100 million won in ETF investments."[4]
January 2026: KOSPI Breaks 5000, ETF Returns 103%
On January 22, 2026, KOSPI broke through the 5000 mark during trading. The Presidential Office announced that President Lee's ETF valuation profit was approximately 27 million won as of the closing price, with returns between 103-115%.[5]
February 2026: 132% Returns, KOSPI Approaching 6000
Chosun Ilbo reported on February 15, 2026, that President Lee's KODEX200 ETF returns had risen to 132%.[6] As of February 23, 2026, KOSPI is approaching the 6000 mark, and securities firms are raising target levels to 7000.[7]
Expansion Factors: Structural Changes Created by 'Shareholder-Friendly Policies'
1) Mandatory Treasury Stock Cancellation: 36 Trillion Won Potential
The core of the third Commercial Act amendment is to mandate that companies cancel acquired treasury stock within one year in principle. According to Daishin Securities analysis, if KOSPI-listed companies cancel all their treasury stocks (approximately 3.13% of total market cap), earnings per share (EPS) would improve by about 3.23%.[8]
This policy blocks the practice of controlling families using treasury stocks as a tool to strengthen their grip. When treasury stocks are cancelled, the number of shares circulating in the market decreases, increasing per-share value.
2) Expanded Director Fiduciary Duty: Company → Shareholders
The Lee Jae-myung administration pushed for a Commercial Act revision expanding directors' fiduciary duty from the "company" to "shareholders." This established a legal foundation requiring management to prioritize the interests of general shareholders rather than controlling families.
3) Severe Punishment for Unfair Trading: Eliminating Market Manipulators
Based on his experience as "prey for market manipulators," the president strengthened policies to severely punish unfair trading in the stock market. In early 2026, President Lee stated, "The stock exchange is like a department store," adding, "If there are many rotten products and fake goods, who would go there?"[9]
4) AI·Semiconductor Supercycle
Franklin Templeton stated in a February 2026 report that "the Lee Jae-myung administration's shareholder return policy is structurally positive," describing it as "a credible path to improving capital efficiency."[10] Strong performance from AI semiconductor companies like SK Hynix and Samsung Electronics amplified the policy effects.
Context/Background: 'Korea Discount' Resolution vs Speculation Concerns
Support: Successful Structural Improvement
Bloomberg analyzed, "Lee Jae-myung's reforms are important and definitely help improve valuation," noting that "policy alone cannot explain KOSPI 5000, but it signals structural change."
In Reddit investment communities, assessments emerged that "the Lee Jae-myung administration is the first proper president Korea has had in a long time."[11]
Opposition: Speculation Concerns
The opposition criticized, "The government making stock prices a campaign promise itself encourages speculation." At the January 2026 New Year press conference, President Lee drew a line, saying, "Will there be a major crash? I don't know either. Investment should be done carefully based on one's own judgment."[2]
Slownews reported on February 1, 2026, that "when 'KOSPI 5000' was first mentioned, there was harsh criticism calling it 'political agitation,'" noting that "there was criticism that policy and politics should not carelessly discuss prices."[12]
Outlook: 6000, 7000... How Far Will It Go?
Short-term: Securities Firms Raise Target to 7000
Chosun Ilbo reported on February 22, 2026, that "as KOSPI approached 6000 less than a month after breaking through 5000, securities firms are successively raising target indices to 7000."[7]
The KRX securities index has doubled since the beginning of the year and is being identified as the next leading stock.
Long-term: Policy Sustainability Is Key
Franklin Templeton warned that "the market will only reward when policy translates into actual behavior," emphasizing that "policy sustainability is key."[13]
The New York Times assessed on January 30, 2026, that "Lee Jae-myung's pledge was to push through investor-friendly reforms and bring KOSPI to 5000," noting that "now that promise has become reality."[14]
Checklist: 3 Perspectives on This Issue
1. Investor Perspective
- ✅ Short-term momentum: Treasury stock cancellation bill passage imminent, securities stocks surging
- ⚠️ Volatility risk: 95% 1-year return may signal overheating
- ✅ Structural improvement: Shareholder-friendly policies resolving 'Korea Discount'
2. Policy Perspective
- ✅ Transparency: President publicly discloses ETF investment scorecard
- ⚠️ Politicization concerns: Setting precedent of making stock prices a political pledge
- ✅ Legislation: Establishing institutional foundation through Commercial Act revision
3. Global Perspective
- ✅ Rising attention: Coverage by major media including Bloomberg, NYT, Franklin Templeton
- ⚠️ AI bubble dependency: Vulnerable if semiconductor supercycle ends
- ✅ Model case: Evaluated as example of emerging market escaping 'discount'
Reference Links
- Bloomberg - How Korea's President Turned Its Market Into the World's Best (2026.02.23)
- Chosun Ilbo - Kospi 200 ETFs Surge, Outperforming Stock Pickers (2026.02.15)
- Presidential Office - President Lee Jae-myung's ETF Investment Scorecard Disclosed (2025.09.18)
- Franklin Templeton - South Korea: from 'discount' to 're-rating' (2026.02.10)
- Chosun Ilbo - KOSPI's Unstoppable Rise, Securities Firms Raise Forecasts to 7000 (2026.02.22)
- Einfomax - Beyond Treasury Stock Cancellation to M&A Innovation (2026.01.09)
Image Sources
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- Presidential images: Portrait rights and Blue House official image copyright issues
- ETF charts/stock market screens: Real-time data copyright and financial information provider license restrictions
- Bloomberg article screenshots: Paid subscription content not redistributable
Alternative explanation:
- Text-focused composition emphasizing facts and analysis
- Readers can view original images and charts through reference links