As the KOSPI topped 4,000 for the first time ever, the value-up index also hit a record high as of the end of Oct.
According to the Monthly Status of Corporate Value Enhancement released by the Korea Exchange (KRX) on the 5th, a total of 167 listed companies disclosed plans to enhance corporate value as of the end of last month. Of these, 128 are KOSPI-listed and 39 are KOSDAQ-listed. The market capitalization of these companies accounts for 44.5% of the entire market.
The value-up index hit a record high at the end of last month, buoyed by the KOSPI breaking above 4,000 for the first time.
The exchange said, "The KOSPI surged on expectations of improved corporate earnings led by semiconductors and governance reform policies, including revisions to the Commercial Act," adding, "The value-up index stood at 1,687.27 points as of Oct. 31, up 77.8% from the start of the year, outpacing the KOSPI's gain (71.2%) over the same period."
Riding the value-up fervor, the related exchange-traded fund (ETF) market is also growing rapidly. The current net asset value of 13 value-up ETFs is about 1 trillion won, up 102.2% from when they were launched in Nov. last year (496.1 billion won).
Last month, KOSDAQ-listed JVM filed a preliminary disclosure, and five companies including Lotte Shopping, iM Financial Holdings, SeAH Holdings, SeAH Besteel Holdings, and LOTTE HIMART filed periodic disclosures. So far, a total of 28 corporations have submitted periodic disclosures, with 60 cases of multiple (two or more) disclosures.
Among the top 10 conglomerates, Lotte and Hyundai Motor Group submitted implementation disclosures this year, demonstrating the continuity and commitment of the value-up program. The exchange said, "These groups are reviewing the implementation status of last year's disclosure plans and continuing active efforts to enhance corporate value."
Shareholder-return policies are also being actively pursued. Hana Financial Group last month announced a plan to buy back and cancel 150 billion won worth of its own shares, and major corporations such as Samsung Electronics (2.45 trillion won) and Hyundai Motor (656.6 billion won) confirmed quarterly dividends, maintaining a stance of increasing dividends.
The total amount of share buybacks by all listed companies rose from 650 billion won in 2022 to 1.88 trillion won last year, while the value of share cancellations increased from 310 billion won to 1.39 trillion won over the same period. Cash dividends also increased from 4.39 trillion won to 4.58 trillion won.
An exchange official said, "Beyond shareholder returns, corporate value enhancement plans can be pursued in ways suited to corporate characteristics, such as research and development, facility investment, and improving capital efficiency."