"Korea Value-Up Index Export-Import Event Will Not Be Short-Lived"

Exchange Announces Korea Value-Up Index
NH Investment & Securities "Expect Support for Index Productization and Follow-up Index Development"

NH Investment & Securities on the 25th predicted that the inclusion and exclusion events of the Korea Value-Up Index will not be short-term but will lead to long-term interest.

The Korea Exchange announced the constituent stocks and selection criteria of the "Korea Value-Up Index," which consists of companies with excellent corporate value. The Value-Up Index aims to be used as a benchmark by institutional investors such as pension funds or for the composition of Exchange-Traded Fund (ETF) stocks.

Jae-eun Kim, a researcher at NH Investment & Securities, introduced, "We selected the stocks using evaluation indicators such as market representativeness (market capitalization), profitability (net income), shareholder returns (dividends/treasury stock cancellation), market valuation (PBR), and capital efficiency (ROE)," adding, "If a Value-Up disclosed company meets the minimum requirements, it is given top priority for inclusion." He continued, "The difference from market representative indices such as KOSPI 200 is that qualitative criteria were introduced in addition to market capitalization," emphasizing, "Another differentiating factor is that the weight of individual stocks within the index is capped at 15%."

He explained, "There is a high possibility that support such as productization of the Korea Value-Up Index and development of follow-up indices will continue," and "In terms of investment accessibility, a related ETF will be listed in early November."

He added, "Since the disclosure of the Value-Up plan is the top priority requirement for inclusion in the index, we expect the expansion of corporate participation in Value-Up programs in the future," noting, "Hyundai Motor, Shinhan Financial Group, Woori Financial Group, and Mirae Asset Securities were specially included due to early disclosure of their Value-Up plans."