KOSPI Soars Past 4000: Jubilation Tempered by Caution from Ruling Party
Ruling Party Cheers KOSPI 4000 Milestone, Remains Cautious - Key Points
October 27, 2025, marked a historic moment as the KOSPI index surpassed 4000 points during trading. In response, the ruling Democratic Party of Korea (DPK) greeted the news with jubilation, yet remained cautiously vigilant. During a Supreme Council meeting held at the National Assembly that morning, attendees applauded upon hearing that the KOSPI had exceeded 4000. This was interpreted as a positive sign that South Korea's economy was entering a new phase of growth. However, the DPK leadership stressed the need to strengthen policy efforts to ensure this upward momentum is not temporary and that its positive impact on the overall economy is sustained. They noted that various factors contributed to the KOSPI's rise and cautioned that volatility could increase at any time due to changes in the external economic environment. The DPK stated it will continue to closely monitor the economic situation and intervene with appropriate policies to support stable economic growth when necessary. Furthermore, they added that they will strive to ensure the benefits of the KOSPI's rise are not concentrated among specific groups, but are distributed equitably across society.
The DPK intends to leverage the KOSPI 4000 breakthrough not merely as a stock market boom, but as an opportunity to improve South Korea's economic structure and achieve sustainable growth. To this end, the government will focus its policy capabilities on encouraging corporate innovation and identifying new growth engines. Specifically, it plans to expand investment in promising future industries such as artificial intelligence, biotechnology, and renewable energy, and ease related regulations to support companies in actively developing new technologies and expanding their businesses. The government will also focus on revitalizing youth entrepreneurship and strengthening the competitiveness of small and medium-sized enterprises (SMEs). It plans to utilize various policy measures, including start-up funding, technology development support, and overseas market entry assistance. The DPK anticipates that these policies, if successfully implemented, will further boost the KOSPI's upward trajectory and allow the South Korean economy to enter a long-term growth phase. However, they emphasized that the success of these policies requires the efforts of the government, businesses, and the public, and urged all economic stakeholders to actively cooperate.
While the KOSPI 4000 breakthrough is undoubtedly a positive sign for the South Korean economy, concerns remain about outstanding challenges. In particular, household debt, job insecurity, and widening inequality could hinder the ability of many to feel the benefits of the KOSPI's rise. The DPK plans to address these issues through proactive policy efforts. To tackle household debt, they are considering various measures such as curbing interest rate hikes and expanding debt relief programs. To address job insecurity, they will focus on creating quality jobs and strengthening the employment safety net, including expanding unemployment benefits. To address widening inequality, they plan to improve the tax system, including raising income taxes and strengthening inheritance taxes, and expand the social welfare system to reduce income disparities. The DPK stated that it will strive to ensure that the benefits of the KOSPI's rise are distributed equitably throughout society through these policies. However, they emphasized that the successful implementation of these policies requires understanding and cooperation from all sectors of society and urged the public to actively participate.
Meanwhile, Argentina held midterm congressional elections on October 26, 2025, where the Liberty Advances (LLA) party achieved an unexpected victory, signaling a significant shift in Argentina's political landscape. This election result can be interpreted as a reflection of public dissatisfaction with the existing two-party system, and attention is focused on the future direction of Argentine politics. On October 27, 2025, U.S. President Donald Trump stated that he believes a U.S.-China agreement will be reached, expressing optimism about improved U.S.-China relations. Trump is scheduled to hold talks with Chinese President Xi Jinping on the sidelines of the APEC summit in Gyeongju, South Korea, on October 30, 2025, where discussions on key bilateral issues are expected. In particular, trade imbalances, the tech hegemony competition, and the Taiwan issue are expected to be major agenda items, and the outcome of this meeting is expected to determine the future course of U.S.-China relations.
