The Korea Exchange (KRX) said on the 27th that it revised the guidelines and commentary for plans to boost corporate value and the guidelines for selecting outstanding companies to spread advanced dividends procedures and reflect amendments to the Commercial Act.
The exchange plans to encourage the market-wide adoption of advanced dividends procedures by giving incentives to listed companies that improve their dividends process.
The guidelines and commentary for plans to boost corporate value added "improvement of dividends procedures" as an example of nonfinancial indicators that can be used in processes such as status diagnosis, goal setting and planning.
Corporations that amend their articles of incorporation to improve the dividends process and apply it to actual dividends will receive extra points when evaluated as value-up outstanding companies. Specifically, in the second "qualitative assessment" among the three stages of the value-up outstanding company evaluation, the exchange plans to award extra points in the "shareholder returns and investment efforts" category to corporations that have advanced their dividends procedures.
Along with this, the exchange also reflected in the guidelines and commentary the key points of the three recent amendments to the Commercial Act and the Ministry of Justice's "guidelines on directors' standards of conduct in corporate reorganizations," released on the 25th of last month, so that corporations can use them when drawing up value-up plans.