KOSPI 5,000 Milestone: President Lee Pushes Korea Commercial Act Amendment for Treasury Share Cancellation
President Lee Jae-myung and ruling lawmakers agree on a swift Commercial Act amendment for mandatory treasury share cancellation to sustain the KOSPI 5,000 momentum.
The KOSPI has hit the historic 5,000-point mark, but the government isn't stopping there. President Lee Jae-myung and ruling party lawmakers reached a consensus on January 22, 2026, to fast-track the Korea Commercial Act amendment treasury shares cancellation clause to further boost shareholder value.
Korea Commercial Act Amendment Treasury Shares Mandate
During a luncheon at Cheong Wa Dae, President Lee and the Democratic Party's special committee discussed the third round of revisions to the Commercial Act. The centerpiece of this bill is the mandatory cancellation of treasury shares held by listed firms. It's a move specifically designed to eliminate the 'Korea Discount' by preventing companies from using own shares as a tool for protecting management control rather than returning value to investors.
Rep. Oh Gi-hyoung, who leads the committee, told reporters that the revision shouldn't be delayed any further. This legislative push comes as the KOSPI remains bullish after topping 5,000 points, signaling the government's commitment to maintaining market momentum through structural reform.
Stabilizing the Won and Economic Outlook
Beyond corporate governance, the administration is keeping a close watch on the currency market. President Lee recently noted that authorities expect the Korean won to strengthen to around 1,400 won against the dollar within the next one to two months. This multi-pronged approach aims to provide a stable environment for both domestic and international investors.
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