South Korea's KOSPI Index hits highest level since August 1, 2024, after Lee Jae-myung confirmed as new South Korean president.

South Korea's KOSPI Index hits highest level since August 1, 2024, after Lee Jae-myung confirmed as new South Korean president.

The KOSPI Index, South Korea's benchmark stock market index, reached its highest level since August 1, 2024, following the confirmation of Lee Jae-myung as the country's new president. The KOSPI Index, which closed at 2,700 points on June 3, 2025, marks a significant milestone, reflecting investor optimism about the new leadership and the potential for economic stability and growth.

Lee Jae-myung, the candidate for the Democratic Party, was officially confirmed as the new president on Wednesday, June 3, 2025, after winning the presidential election by a landslide [2]. The exit polls showed Lee with 51.7% of the vote, while his conservative challenger, Kim Moon-soo, was on track to win 39.3% [2]. This victory comes amidst months of political turmoil, including the declaration of martial law by the previous president, Yoon Suk Yeol, which left the country in crisis [2].

The high turnout, with around 77.8% of voters participating, indicates a strong desire among South Koreans to move forward from the political chaos [2]. Investors have responded positively to Lee's victory, with the KOSPI Index surging to its highest level in nearly eight months. This upward trend is likely driven by expectations of a more stable political environment and potential economic reforms under the new administration.

However, the new president will face significant challenges, including managing global trade vicissitudes, addressing low birth rates, and dealing with an emboldened North Korea [2]. Despite these challenges, the market's positive reaction suggests that investors are hopeful about Lee's ability to navigate these issues and promote economic growth.

In conclusion, the confirmation of Lee Jae-myung as South Korea's new president has led to a significant rally in the KOSPI Index, reflecting investor optimism about the new leadership and the potential for economic stability and growth. As the new administration takes office, investors will be closely watching for signs of policy direction and economic reforms that could further boost market confidence.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_P8N3R70D5:0-south-korea-s-lee-jae-myung-officially-confirmed-as-new-president-live-tv-shows/
[2] https://www.lemonde.fr/en/international/article/2025/06/03/polls-show-south-korea-s-lee-on-track-to-win-presidency-by-landslide_6741964_4.html