South Korea's Legislative Push for Market Growth

South Korea's legislative body approved a pivotal amendment to the Commercial Act on Thursday, reinforcing the fiduciary responsibilities of board members. This legislative change targets improving the nation's corporate valuations by prioritizing minority shareholders' interests.

Recently elected President Lee Jae Myung has backed this legislative move, delivering on his campaign promise to address the 'Korea Discount' that hampers South Korean businesses. The discount arises from lower stock valuation compared to international counterparts, largely due to family-controlled conglomerates prioritizing their own interests.

The market responded favorably as the KOSPI index surged to 3,116.27 points. The revision could enhance foreign investment confidence, potentially helping South Korea advance to developed market status by MSCI. Government efforts are underway to secure this promotion, involving a new task force to improve market access.

(With inputs from agencies.)