Kim Byeong-hwan, head of the Financial Services Commission, held a corporate value-up meeting on the morning of the 26th at the Korea Exchange in Yeouido, Seoul, along with the government, related institutions, major listed companies, and market participants, to assess the progress made in value-up initiatives and discuss policy directions for the coming year.
He stated that 99 companies have participated in value-up disclosures so far, and participation continues to increase. He emphasized the government’s commitment to pursue value-up policies without wavering, including prioritizing discussions on value-up tax support in the National Assembly.
During the meeting with government agencies, related institutions, and major listed companies, Kim reviewed the achievements of the value-up initiatives and outlined policy directions for the next year. Since introducing the corporate value enhancement disclosure guidelines last May, 99 companies participated as of the 24th, with 27 companies making their disclosures this month alone. To date, 87 companies have made full disclosures, and 12 have made preliminary announcements, representing approximately 43% of the KOSPI market capitalization.
Additionally, Kim noted a cultural shift towards respecting shareholder value among listed companies, as evidenced by a threefold increase in stock buybacks and a rise in dividends. As of the 20th, stock purchases amounted to 18.7 trillion won, nearly doubling from the previous year, with stock cancellations reaching 13.9 trillion won. Cash dividends rose by 7% to 45.7 trillion won.
The government and related agencies stressed their continuous commitment to advancing value-up policies and called for sustained interest from domestic and international investors and the participation of listed companies.
The government outlined efforts to enhance momentum by reinstating tax benefits for value-up, awarding outstanding companies, and conducting joint IR initiatives. Plans are in place to amend the Capital Markets Act for better corporate governance, monitor stewardship code implementations, expand English disclosures, and enforce rigorous measures against unfair trading as part of market trust restoration efforts. Legislative discussions for ISA tax support expansion and capital market laws related to corporate governance will be vigorously pursued with the National Assembly.
Listed companies responded positively, with Samsung Electronics, the top market-cap company, planning to engage in value-up disclosures, and KB Financial Group, the largest financial company by market cap, having made its main disclosure last October. Cosdaq company Sensibility Corporation, which received value-up consulting from the Korea Exchange, will make its main disclosure within this year.
Domestic and foreign analysts emphasized the need for clear expressions of government policy intent and consistent policy execution to assure market participants of the continuity of value-up policies. There are high expectations among investors for reforms in corporate governance-related capital market laws and short selling. Measures to improve the stock market’s structural integrity, such as reforms in market delisting regulations, should also be pursued.
Jeong Eun-bo, Chairman of the Korea Exchange, pledged active support for value-up initiatives and efforts to strengthen the stock market’s competitiveness. Lee Se-hoon, Senior Deputy Governor of the Financial Supervisory Service, indicated plans to identify various tasks to revitalize the stock market and work closely with relevant departments for consistent policy implementation.
Jung Jeong-hoon, head of the Ministry of Strategy and Finance’s tax policy office, stated that plans for tax support regarding corporate value-up, which were not passed by the National Assembly this time, will be actively pursued through close discussions to achieve tangible results.