This video captures the full unscripted investment lecture by South Korean President Lee Jae-myung at the New York Stock Exchange before global investors and business leaders. President Lee provided detailed explanations of the Korean capital market's current state, reasons for its undervaluation, future economic and industrial policies, and strategies for attracting global investors. He also addressed major issues including MSCI (Morgan Stanley Capital International) index inclusion and geopolitical risk mitigation. Throughout the lecture, candid messages, key policy changes, and essential information for foreign investors are presented in an accessible manner.

1. Welcome and Opening at the NYSE

The presentation begins with a welcome from NYSE officials. The chairman of the 233-year-old New York Stock Exchange welcomes the Korean president and senior officials, noting the importance of economic cooperation between the two nations.

"Thank you so much for having so many people here today. Personally, I've always wanted to visit the New York Stock Exchange, and I'm sincerely grateful for this warm welcome."

President Lee expresses his gratitude, emphasizes America's role as the leader of capitalism, and notes that Korea is the only country to achieve both democracy and economic prosperity from the ruins of war with American support.

"Among liberated colonies, Korea became the only country to achieve both democracy and economic prosperity simultaneously."

2. The Reality and Causes of Korea's Economic Undervaluation

President Lee points out that while Korea's economy and stock market are hitting all-time highs, the market remains significantly undervalued.

"Korea's stock market is clearly undervalued. For example, the PBR doesn't even reach 1. The PER is also at a very low level."

He then explains the specific causes of undervaluation, organizing them into four main categories:

1. Geopolitical Risk Military tension and instability on the Korean Peninsula.

2. Opaque Corporate Governance Issues Unpredictable management and investor harm from practices like "physical spin-offs."

   "You buy what you think is a good stock, and one day you discover its value has been drained through physical spin-offs or similar maneuvers — absurd situations like that have occurred."

3. Market Unfairness Insufficient actual sanctions against stock price manipulation and unfair trading.

   "Stock price manipulation occurs openly, yet the penalties for it have not been clear."

4. Political Uncertainty Unclear direction for economic and industrial policy, and remaining barriers to entry for foreign investors.

3. Economic Policy and Market Improvement Direction

President Lee notes that after his government's inauguration, stock prices rose significantly on expectations alone, even without specific improvement measures.

"Just the launch of the Lee Jae-myung administration itself signaled that the market would normalize. That expectation alone was enough to drive stock prices up."

He then presents specific market improvement policies that are planned or already being implemented:

1. Strict Punishment for Unfair Trading Very firm response to stock price manipulation and unfair trading.

   "If you manipulate stock prices or distort the market, you will be completely ruined. That might not translate perfectly into English, but it means total destruction."

2. Corporate Governance Transparency Through Commercial Law Reform Establishing institutional safeguards to rationalize management decision-making systems and protect minority shareholders. The third revision of the Commercial Act is underway, strengthening responsible management, protecting minority shareholders and general investors, and preventing excessive misuse of treasury shares for management control.

   "If management is conducted solely for the benefit of specific shareholders, they will face enormous damages and, in severe cases, even criminal punishment."

3. Removing Barriers for Foreign Investors Plans to quickly improve factors that make it difficult for foreign investors, including currency exchange issues and trading hour limitations.

   "Korea's failure to be included in the Morgan Stanley index is due to insufficient preparation, and I understand the core issue is the foreign exchange market. We plan to resolve this issue very quickly."

4. Geopolitical Risk and Korean Peninsula Peace Strategy

The president addresses geopolitical risk (North-South military confrontation), one of the most commonly cited reasons for Korea's market undervaluation. He explains it in accessible terms and argues that 'the actual risk is exaggerated.'

"South Korea's current defense budget is 1.4 times North Korea's annual GDP. There's simply no comparison."

"North Korea isn't building triple barbed-wire fences for invasion — they're preventing their own citizens from fleeing south."

He points out that the fundamental causes lie in political issues and North Korean provocations, and directly states his plan to focus more on building peace going forward.

"Military superiority is fundamentally important, but that's just the foundation... Let's peacefully talk, communicate, and find ways that benefit both sides."

He also presented concrete proposals for phased negotiations on Korean Peninsula denuclearization, halting nuclear development, and preventing nuclear warhead exports.

"In the short term, let's halt nuclear development, nuclear exports, and ICBM development. In the medium term, let's reduce nuclear weapons. In the long term, let's pursue denuclearization."

"The only negotiating partner North Korea truly trusts is President Trump, so we will actively mediate and support this."

5. Industrial/Economic Policy and Asset Market Structural Reform

Korea signals a major shift in industrial and economic policy.

• Major pivot to advanced industries Active government investment in key growth drivers including space, defense, biotech, and renewable energy.
• Expansionary fiscal policy: Expanding the government's role and promising a predictable economic policy direction.

The over-concentration of assets in real estate is also identified as a problem, with a stated commitment to making the shift toward financial asset investment a national policy.

"Korea really has too much investment weight in real estate. Nearly 80% is in real estate. Shifting the direction of national investment toward productive assets and financial assets like stocks is a major task."

"We are preparing comprehensive policy reforms in financial policy, taxation, and more to shift financial institutions and asset investment toward productive areas."

6. Message to Foreign Investors and Closing

President Lee welcomes foreign investors' interest in the Korean market and promises market improvement measures.

"Before you invest in the Korean market, our Korean citizens should buy first — so that when the market improves, Korean citizens can enjoy more of the benefits. Frankly, I'm a bit worried you might come in too quickly."

He concludes by expressing his desire to hear the attendees' advice and opinions.

"Let's hear your valuable thoughts, and I'll wrap up my remarks here. Thank you."

Conclusion

President Lee's NYSE investment lecture analyzed the causes of Korea's market undervaluation in terms everyone can understand and conveyed concrete policies and determination for market normalization and global investor attraction. Confidence in a bright future for the Korean stock market and economy permeated the entire lecture, covering geopolitical and policy risk mitigation, industrial structural transformation, and institutional improvements toward global standards.