[Edaily Reporter Kim Hyung-il ] The number of domestic listed companies that have disclosed corporate value enhancement plans has risen to 801. With 426 KOSDAQ-listed companies surpassing the number of KOSPI-listed companies (375), the trend of value-enhancement disclosures appears to be spreading to the small- and mid-cap stock market as well.

On the 5th, the Korea Exchange announced that, as of the end of October, a total of 801 listed companies had disclosed corporate value enhancement plans. Last month, 37 companies made new disclosures.

The combined market capitalization of these companies totaled 4,307.7 trillion won, accounting for 83.8% of the total market. The market capitalization of KOSPI-listed companies that disclosed such plans was 4,177.3 trillion won, representing 88.3% of the total KOSPI market capitalization. KOSDAQ-listed companies accounted for 24.2% of the total market with a market capitalization of 130.3 trillion won.

Among the companies that submitted corporate value enhancement plans, a cumulative total of 132 had submitted periodic disclosures as of the end of October. In October, 10 companies— KG DONGBUSTEEL(016380), DEUTSCH MOTORS INC.(067990), DB Financial Investment Co., LTD.(016610), ELP Corp.(063760), #SY CO., LTD., GwangjuShinsegae(037710), HYUNDAI MOTOR SECURITIES(001500), #SY CO., LTD. Holdings, BNK Financial Group Inc.(138930), and HIZEAERO Co.,Ltd.(221840) —submitted periodic disclosures.

Companies with low PBR (price-to-book ratio) also continued to submit corporate value improvement plans. As of the end of October, a total of 62 companies had submitted PBR improvement plans. Of these, 36 companies made their initial disclosures in October—16 on the KOSPI and 20 on the KOSDAQ. Among all companies that submitted plans, 34 were listed on the KOSPI and 28 on the KOSDAQ.

Of the 62 companies that submitted PBR improvement plans, 34 were excluded from the list of companies subject to low PBR disclosure. The companies excluded from disclosure included 19 on the KOSPI and 15 on the KOSDAQ. The exchange plans to provide one-on-one, customized PBR improvement consulting next year to help all 151 low-PBR companies voluntarily enhance their corporate value.

Shareholder returns also expanded. In October, SK hynix(000660)decided to repurchase 20 trillion won worth of its own shares, while #SamsungE&A, ShinhanFinancialGroup Co.,Ltd.(055550), and S-1(012750)also announced share buybacks. Samsung E&A, ShinhanFinancialGroup Co.,Ltd., and LGCHEM,LTD(051910)also decided to cancel the repurchased shares.

Cash dividends were also substantial. SamsungElectronics(005930)decided on cash dividends totaling approximately 30 trillion won, SK hynix approximately 14 trillion won, and #HyundaiMotor approximately 660 billion won. According to figures compiled by the stock exchange, the annual cash dividend payout by KOSPI and KOSDAQ-listed companies rose from 43.1 trillion won in 2023 to 45.8 trillion won in 2024 and reached 50.9 trillion won last year. During the same period, the amount spent on share buybacks rose from 8.2 trillion won to 20.1 trillion won, while the amount spent on share cancellations increased from 4.8 trillion won to 21.4 trillion won.

The market for Value-Up Index-linked exchange-traded funds (ETFs) also grew. The Value-Up Index closed at 2,691.90 points on the 30th of last month, up 49.8% from 1,797.52 points at the end of last year. Over the same period, it outperformed the KOSPI’s gain (36.0%) by 13.8 percentage points. The total net assets of the 13 Value-Up ETFs stood at approximately 3.2 trillion won at the end of October, a 556.6% increase from the 500 billion won recorded at the time of their initial launch.

The exchange plans to hold a briefing session on the 25th for board members of listed companies to encourage them to enhance corporate value. Following the amendment to the Commercial Act, experts will deliver presentations on topics such as the role of the board of directors and decision-making regarding capital allocation to enhance shareholder value.