Mirae Asset Financial Group Chairman Park Hyeon-joo has responded to criticisms about disappointing shareholder returns affecting the stock prices of Samsung Electronics and SK hynix. He emphasized that a company’s fundamentals are more crucial than immediate payouts. During a recent dinner with Digital X employees, Park argued against the notion that insufficient dividends cause stock price declines. He contended that significant reinvestment is necessary for companies to achieve substantial growth, likening the need for capital accumulation to the success of Korea’s tech giants.
Park also discussed the potential impacts of the government’s impending property tax overhaul, predicting a shift in household wealth from real estate to capital markets, asserting that the era of profiting from property ownership should come to an end.
Additionally, he disputed claims that domestic leveraged ETFs are responsible for market volatility, attributing much of the turbulence to foreign investors’ activities and overseas leveraged products. Park noted that the domestic market’s leveraged ETFs amount to about 13 trillion won (approximately $9.4 billion), compared to around 40 trillion won in foreign products, arguing that the real source of volatility lies outside of Korea’s regulatory environment.
