Chairperson Kim Byeong-hwan said, “We will continue to implement the 'value-up policy' consistently and unwaveringly,” and urged, “Domestic and foreign investors should maintain their interest and publicly listed corporations should participate.”
The Financial Services Commission reported that Chairperson Kim held a 'corporate value-up meeting' on the 26th at the Korea Exchange in Yeouido, Seoul, and made this statement. After the government announced the corporate value-up program earlier this year, the launch of exchange-traded funds (ETFs) tracking the Korea Value-Up Index and the formation of value-up funds followed.
As of the 24th, the number of corporations that publicly announced plans to enhance their corporate value has increased to 87, while 12 corporations have indicated they will make announcements. Corporations that announced plans to enhance their corporate value account for approximately 43% of the market capitalization of the KOSPI market.
At the meeting, the publicly listed corporations indicated they would announce plans to enhance their corporate value in order to resolve the undervaluation and stated they would implement those plans diligently. They also asserted that the tax benefits proposed by the government should be swiftly introduced to encourage greater participation from other corporations.
Domestic and foreign securities analysts advised that while continuing the value-up policy, improvements in capital market laws for corporate governance and short selling policies should also be pursued. Efforts to improve the delisting system in the Korean stock market were also deemed necessary.
The government and related agencies stated they would support the value-up policy. Jeong Eun-bo, chairman of the Korea Exchange, noted, “Despite recent uncertainties domestically and internationally, there has been visible expansion of participation in the value-up from the top 10 groups and financial holding companies, actively communicating with shareholders,” and added, “The exchange will also actively support the value-up and continue its efforts to strengthen the competitiveness of the stock market.”
Jeong Jeong-hoon, director of the Ministry of Strategy and Finance's Taxation Division, stated, “We plan to closely discuss again with the National Assembly the tax support measures for corporations participating in the value-up program that have not passed the National Assembly.”