Kim Byung-hwan, Chairman of the Financial Services Commission, Holds 'Value-Up Meeting'
Importance of Shift from 'Debt-Centered to Capital-Centered'
Encouraging Companies to Participate in Value-Up Disclosures
On the 12th, Kim Byung-hwan, Chairman of the Financial Services Commission, invited large companies such as LG, Hyundai Motor, and POSCO Holdings to the 'Corporate Value-Up Listed Companies Meeting.' This move is interpreted as an effort to encourage corporate participation amid market criticism that leading domestic companies like Samsung Electronics have been slow to join the government's value-up (corporate value enhancement) program.
On the same day, Kim Byung-hwan held the 'Corporate Value-Up Listed Companies Meeting' at the Korea Exchange in Yeouido, Seoul, stating, "To transform the stock market into a more robust and resilient one, it is important to enhance the competitiveness of listed companies and the stock market through the expansion and solidification of the corporate value-up program."
He also emphasized, "From the perspective of shifting the economic structure from debt-centered to capital-centered, advancing the capital market through corporate value-up is essential." This aligns with Chairman Kim's inaugural speech on the 31st of last month, where he stressed the need to move away from an over-reliance on debt and activate equity financing.
According to the Financial Services Commission, as of the 12th, a total of 14 companies have participated in value-up disclosures (including preliminary disclosures). About half of these are financial holding companies, and major Korean companies such as Samsung Electronics and Hyundai Motor are not included.
The companies invited to the meeting included six listed on the KOSPI market (Meritz Financial Group, Kiwoom Securities, Yuhan Corporation, POSCO Holdings, LG, Hyundai Motor) and two listed on the KOSDAQ market (HK Inno.N, MRO). Among the KOSPI-listed companies, only Kiwoom Securities and Meritz Financial Group have participated in value-up disclosures. The other four companies are also expected to initiate value-up disclosures following their participation in this meeting.
Chairman Kim plans to pursue remaining tasks such as announcing the 'Korea Value-Up Index,' a benchmark (BM) index featuring 'value-up excellent companies' in September, and launching linked exchange-traded funds (ETFs) in the fourth quarter. He also urged the financial investment industry to ensure that market capital flows create a virtuous cycle with corporate value-up efforts.
Regarding the value-up tax incentives included in the 2025 tax reform bill announced by the Ministry of Economy and Finance in July, he said, "The Financial Services Commission will actively support future National Assembly discussions to ensure the announced measures are implemented." The tax reform bill includes the abolition of the financial investment income tax and various tax benefits such as corporate tax, dividend income tax, and inheritance tax for companies that disclose value-up plans and expand shareholder returns.
On the revision of the Commercial Act, he noted, "Recognizing the need to spread a management culture that respects shareholder value, we are discussing revision plans with related agencies," adding, "We will gather stakeholders' opinions sufficiently to prepare the government's position."
The companies participating in the meeting pledged to continue disclosures consistently. Even companies that have not yet disclosed expressed sympathy with the purpose of the corporate value-up program and said they would actively consider participation. The companies called for the expansion of support programs such as long-term investment in value-up companies and customized consulting programs by the Korea Exchange. Jung Gu-yong, Chairman of the Korea Listed Companies Association, said, "We hope the government's tax reform bill will be implemented smoothly to serve as a catalyst for corporate value-up," emphasizing, "It is important to create an environment where companies can fully exercise their entrepreneurial spirit for true value-up."
Seo Yoo-seok, Chairman of the Korea Financial Investment Association, said, "Value-up of the capital market is a timely task that can overcome Korea's low birthrate and aging population issues and establish a virtuous cycle in the national economy." Professor Cho Myung-hyun of Korea University, chairman of the Korea Exchange Corporate Value-Up Advisory Group, said, "Although volatility in the global stock market has increased recently, expectations from market participants, including foreign investors, remain alive," urging support efforts such as tax incentives. Jung Eun-bo, Chairman of the Korea Exchange, also stated, "We will closely monitor the preparation status of listed companies, communicate with them, and support their participation."
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