Korea Exchange Holds Mid-sized Enterprise Meeting to Enhance Corporate Value

Daewoong, Samyangsa, IS Dongseo and 7 Other Companies Attend
Jung Eun-bo, Chairman, "Expecting Active Participation from Mid-sized Companies"

The Korea Exchange announced on the 17th that it held a mid-sized enterprise meeting for corporate value-up chaired by Chairman Jeong Eun-bo.

Jung Eun-bo, Chairman of the Korea Exchange (fifth from the left in the front row), and executives of mid-sized companies attending the meeting are shouting "Fighting" and taking a commemorative photo.
[Photo by Korea Exchange]

This meeting was the second following the meeting with leading companies with assets over 10 trillion won, such as Samsung Electronics and Hyundai Motor Company, held on the 4th, and was organized to listen to the opinions of 10 companies with assets over 2 trillion won. The meeting was attended by 10 companies including ▲Daewoong ▲Samyangsa ▲IS Dongseo ▲NHN ▲Ottogi ▲Pulmuone ▲Poongsan ▲Hyundai Home Shopping ▲CJ Logistics ▲SKC.

Chairman Jeong said, "The active participation of mid-sized enterprises, which play a solid backbone role in our economy, is essential for the corporate value-up program to take root in the market."

He added, "The 'Corporate Value Enhancement Plan' of the corporate value-up program is prepared by the companies themselves, considering individual characteristics such as industry features and growth stages among non-financial indicators including governance, as well as financial indicators," and said, "We will reflect this principle of autonomy well in the guidelines."

In response, the attending companies agreed with the direction that emphasizes corporate autonomy in the corporate value-up program. They also suggested that support is needed so that this policy does not only raise market interest in some large companies but also provides an opportunity for undervalued mid-sized enterprises to be re-evaluated. In particular, they expressed concerns that failing to achieve the goals and plans presented in the corporate value enhancement plan could be considered false disclosure, which causes a burden.

An official from the Exchange said, "Currently, some companies disclose plans related to sales, profits, and investments, and there are exemption systems in the Exchange's disclosure regulations to ensure that failure to achieve these does not constitute false disclosure, operating in a way that reduces the burden on companies." He added, "The same system applies to the corporate value enhancement plans that establish mid- to long-term goals, so there will be no additional burden, and we will actively communicate with companies and provide institutional support regarding this."

He continued, "Next week, we plan to hold a meeting targeting growth companies, and after the guidelines are announced in May, we will hold outreach briefings for companies located in various regions to actively promote the program and encourage voluntary participation of listed companies."