 |
Photo = Captured from JTV broadcast |
[Alpha Biz= Lee Joonhyun] South Korea’s Deputy Prime Minister and Finance Minister Koo Yoon-cheol came under fire after an inaccurate response regarding the price-to-book ratio (PBR) of the KOSPI during a parliamentary session.
During a National Assembly finance committee briefing, lawmaker Lee So-young of the Democratic Party asked about Korea’s PBR level. Minister Koo responded, “Isn’t it around 10?”—a figure far from reality. His remark sparked criticism that the country’s top economic policymaker lacks even basic market knowledge.
The PBR, a key indicator comparing stock prices to book value, is currently around 1.0 for the Korean market. By contrast, Taiwan’s PBR stands at 2.4 and Japan’s at 1.6, underscoring the perception that Korean equities remain undervalued.
Koo’s slip drew sharp reactions on social media and from market commentators. Journalist Choi Kyung-young said he had to “double-check in disbelief,” while former analyst Chae Sang-wook described the remark as “the most shocking statement since Chung Mong-joon’s infamous 80-won bus fare comment.”
The controversy comes as the government has been promoting an ambitious “KOSPI 5000” target. Analysts warn, however, that if Korea’s PBR remains at the current depressed level, even a valuation increase to Japan’s multiple of 1.6 would only lift the index to around 5,100 points, making the government’s target difficult to achieve.
Alphabiz 이준현 기자(wtcloud83@alphabiz.co.kr)
