KRX mobilizes medium-sized companies for “Value-Up” program

Korea Exchange CEO Jeong Eun-bo held a roundtable discussion with mid-sized companies listed on the country’s main stock exchange, Kospi, to encourage them to actively participate in the government-run “value-added program” for companies.

This is the third meeting of this kind, after Jeong previously met with major corporations and financial firms.

Earlier this year, the government announced a revaluation program designed to boost the undervalued share prices of Korean companies – a phenomenon commonly referred to as the “Korea rebate.” The program promises incentives such as tax breaks for companies to increase shareholder benefits and improve overall corporate governance.

Companies with assets ranging from 2 trillion to 5 trillion won ($1.5 billion to $3.6 billion) took part in Wednesday’s event, including Orion, Yuhan, Kolmar Holdings, Hyundai Elevator and LG Household & Health Care.

Since last month, companies have started to announce their value-added plans to the regulators. Since this is not a mandatory measure, the participation rate remains at 0.2 percent. Of the total 2,682 companies listed on the Kospi and Kosdaq stock exchanges, only seven have submitted notifications as of Thursday.

“We believe that efforts to increase corporate value creation can pave the way for mid-sized companies to increase their competitiveness,” Jeong said during the meeting, emphasizing a strategy of “selective concentration” tailored to the unique characteristics of each company.

“We envision the Corporate Value Up program becoming a center of communication with stakeholders and investors,” he added.

KRX, the country’s sole exchange operator, plans further meetings in July focusing on companies listed on the secondary, technology-heavy Kosdaq market.