A total of 747 listed companies in South Korea's stock market disclosed corporate value enhancement plans as of the end of last month, according to financial investment industry sources. The companies account for 84.6% of the total market capitalization in the domestic stock market, with 348 companies on KOSPI and 399 on KOSDAQ. The disclosure rate shows a significant gap between the two markets: KOSPI companies represent 88.4% of that market's total capitalization despite comprising only 41.8% of listed firms, while KOSDAQ participants account for just 32.6% of market cap and 22.9% of listed companies. The expansion of the value-up program has been driven primarily by large-cap stocks and high-dividend companies, with 632 high-dividend firms among the disclosing entities.
KOSPI Companies Dominate Value-Up Disclosures with 88% Market Cap Coverage
The 348 KOSPI companies that disclosed value-up plans represent 41.8% of all KOSPI-listed firms but account for 88.4% of the market's total capitalization. In contrast, the 399 KOSDAQ companies comprise only 22.9% of KOSDAQ-listed firms and 32.6% of that market's capitalization. The combined market cap of all disclosing companies reached 4,944.7 trillion won. Last month, six companies newly disclosed value enhancement plans, while seven companies announced they would submit disclosures in the future. Monthly advance disclosure notices had remained at one company each in January and February, three each in March and April, and one each in May and June.
117 Companies Submit Periodic Follow-Up Disclosures on Value Enhancement Plans
As of the end of last month, 117 companies submitted periodic follow-up disclosures on their value enhancement plans. Last month, Vitrosell, Hanmi Semiconductor, and Hana Financial Group filed periodic disclosures. Among the 632 high-dividend companies participating in the value-up program, 542 were new disclosures and 90 were existing participants. Companies with dividend and shareholder return policies have led the expansion of value-up program participation.
Shareholder Returns Expand with Treasury Stock Acquisitions Reaching 20.1 Trillion Won
Listed companies' treasury stock acquisitions increased from 8.2 trillion won in 2023 to 20.1 trillion won last year. Treasury stock cancellations grew from 4.8 trillion won to 21.4 trillion won during the same period. Cash dividends expanded from 43.1 trillion won to 50.9 trillion won. Last month, 90 listed companies decided on cash dividends totaling approximately 7.4 trillion won, with financial holding companies leading large-scale treasury stock acquisition and cancellation decisions. Mirae Asset Securities decided to cancel approximately 500 billion won worth of previously acquired treasury stock.
Value-Up Index Rises 75.9% Since Launch
The value-up index stood at 3,162.13 at the end of last month, up 75.9% from the end of last year. This outpaced the KOSPI's 56.5% gain during the same period by 19.4 percentage points. The total net assets of 13 value-up exchange-traded funds (ETFs) reached 3.4 trillion won, a 598.5% increase from their initial establishment. A financial investment industry official stated that as value enhancement plans have spread considerably among large listed companies, actual implementation of presented capital efficiency and shareholder return targets will become more important than the number of disclosures, and the extent of disclosure expansion into markets with relatively low participation such as KOSDAQ will serve as a criterion for judging the establishment of the value-up program.
FAQ
Q: How many South Korean listed companies disclosed value enhancement plans as of the end of last month?
A: A total of 747 listed companies disclosed corporate value enhancement plans as of the end of last month, comprising 348 KOSPI companies and 399 KOSDAQ companies, according to financial investment industry sources.
Q: What is the difference in market cap coverage between KOSPI and KOSDAQ value-up participants?
A: KOSPI companies that disclosed value-up plans account for 88.4% of that market's total capitalization, while KOSDAQ participants represent only 32.6% of KOSDAQ's market cap, showing a significant participation gap between the two markets.
Q: How much did treasury stock acquisitions by listed companies increase from 2023 to last year?
A: Treasury stock acquisitions by listed companies increased from 8.2 trillion won in 2023 to 20.1 trillion won last year, while treasury stock cancellations grew from 4.8 trillion won to 21.4 trillion won during the same period.
