South Korean stocks jump on inauguration of new president

By Mucahithan Avcioglu

ISTANBUL (AA) - South Korean shares ended the midweek with gains in anticipation of a policy push by the new President Lee Jae-myung on Wednesday. The Korean won also gained against the US dollar, state media reported.

The benchmark Korea Composite Stock Price Index (KOSPI) gained 71.87 points, or 2.66%, to close the day at 2,770.84.

At 485.85 million shares valued at 11.95 trillion won (US$8.7 billion), the trade volume was high, and winners outnumbered losers 798 to 119.

Individuals sold a net 1.22 trillion won, while foreign and institutional investors purchased a net 1.05 trillion won and 203.48 billion won, respectively.

According to analysts, international investors bought local equities because they thought the new government would help important industries.

The liberal Democratic Party's Lee Jae-myung defeated the conservative People Power Party's Kim Moon-soo to win the presidency. After martial law was implemented in December, former President Yoon Suk Yeol was overthrown, and the vote came after that.

Earlier today, Lee took office for a five-year tenure.

Lee pledged a new era of democratic restoration, economic recovery and national unity in a televised speech Wednesday from the National Assembly.

He outlined four priorities: restoring democracy and the rule of law, reviving the economy, building a safer society and securing peace.

“We must ensure that weapons entrusted by the people are never again used against them,” he said, pledging to end military interference in politics.

“I will restore democracy and build a republic where citizens live not with hate and fear, but with dignity and cooperation.”

The Korean won gained around 0.8% against the US dollar in the day and was traded around 1,366.6 as of 0755GMT.