Winners and losers after one year of the Lee Jae Myung government

Koh Hyun-kohn The author is the chief editorial writer at the JoongAng Ilbo. Almost one year into the Lee Jae Myung administration, stock investors are the clearest winners in the economy. The Kospi, which stood at 2,698 points when President Lee first took office, has nearly tripled since then. An investor who put 100 million won ($66,850) into an index fund last summer would now hold assets worth about 300 million won. In 2025 alone, individual investors earned 429 trillion won from stocks, and profits have only grown stronger. Stories about people earning "a lifetime's worth of savings" in a short period of time have become common. Despite obvious signs of overheating, the market is dominated by investors' optimism. Last year, the president said that he wanted to create an environment in which "returning to the domestic stock market would be considered a sign of intelligence." In some ways, that goal has been realized. But not everyone is celebrating. Those unable or unwilling to join the stock rally increasingly suffer from "FOMO," or the fear of missing out. That does not mean that they lack judgment. Some are simply unwilling to risk their retirement savings on equities, and others do not have the money to spare for investments. For people outside the market, Lee's "sign of intelligence" remark can sound insulting. While rising stock prices are preferable to falling ones, they do little to reduce inequality. According to the Bank of Korea, the wealthiest 20 percent of households own 73 percent of all stocks. The wealthy become wealthier, and many lower-income households remain spectators. Young people and low-income earners hoping to transform their financial situation have increasingly turned to debt-financed investing. Outstanding margin loans that are used to buy stocks have surpassed a record 36 trillion won. That is hardly normal. However, the government appears more focused on boosting markets than warning the public about risks. On May 11, as the Kospi rose for the fifth consecutive session, Deputy Prime Minister and Finance Minister Koo Yun-cheol remarked that the market remained undervalued. The country's top economic official sounded more like a securities firm executive than a policymaker tasked with maintaining stability. Investors bear primary responsibility for their own decisions, but a government that ignores or encourages speculative excess cannot avoid responsibility forever. Another group of winners during this administration's first year has been apartment owners in Seoul and the surrounding metropolitan areas. Housing prices have repeatedly surged despite government measures aimed at stabilization, with many increasing by 500 million won to 1 billion won over the past year alone. Earlier this month, Lee declared that "the myth that real estate prices never fall no longer exists," but the reality suggests otherwise. After heavier capital gains taxes on owners of multiple homes resumed on May 10, apartment prices began to climb again. At the start of the administration, officials predicted that money would flow out of the real estate market and into stocks. Instead, the reverse happened. Many people used profits from stocks to buy property. According to the Bank of Korea, people without homes spent roughly 70 percent of their stock profits on real estate purchases. The government appears to have underestimated the fact that property ownership still dominates public thinking. More troubling than the soaring housing prices is the rental market. The number of available jeonse (lump-sum deposit) and monthly rental listings has fallen by more than 30 percent this year, which has pushed prices sharply higher. Last week, Seoul's jeonse prices recorded their steepest increase in a decade. In some cases, renters are signing contracts before even viewing properties, creating what has become known as "no-look jeonse." Even in outer Seoul districts, such as Nowon, Dobong, Gangbuk, Geumcheon, Gwanak and Guro, ...