Exchange Adds KB Financial, KT, and Others to Value-Up Index... Additional Value-Up Fund Established

"Next Year, Development of Follow-up and Linked Indices Will Become Visible"

The Korea Exchange announced on the 16th that it will newly include five stocks?KB Financial Group, Hana Financial Group, SK Telecom, KT, and Hyundai Mobis?in the Value-Up Index and additionally raise a second Value-Up Fund worth 300 billion KRW.

Korea Exchange, Yeouido, Seoul. Photo by Jinhyung Kang aymsdream@

At the index management committee meeting held on the 11th, the Exchange reviewed special changes to the components of the Value-Up Index and decided to newly include five stocks: KB Financial Group, Hana Financial Group, SK Telecom, KT, and Hyundai Mobis. This special change was carried out focusing on market-leading companies while maintaining consistency with the regular selection criteria and reflecting expert opinions.

In particular, since this special change includes only the minimum number of stocks, market opinions were considered that greater weight should be given not only to Return on Equity (ROE) but also to domestic market representativeness, symbolism as Value-Up companies, and product characteristics related to linked product management.

An official from the Exchange stated, “Currently, the Exchange and the industry are focusing their efforts on the early establishment of the recently launched Value-Up Index Exchange-Traded Fund (ETF). After completing this special rebalancing, the development of follow-up indices and linked indices will become visible next year. We are communicating with the market and listening to opinions regarding follow-up index development. Additional products will be developed considering industry demand and market conditions.”

Furthermore, the Exchange is moving forward with additional fundraising for the Value-Up Fund. On the same day, together with securities-related institutions such as Korea Securities Finance Corporation, Korea Securities Depository, Korea Financial Investment Association, and Koscom, the Exchange decided to raise a second corporate Value-Up Fund worth 300 billion KRW. Previously, on the 4th of last month, the first corporate Value-Up Fund worth 200 billion KRW was raised.

The corporate Value-Up Fund aims to invest in the Value-Up Index ETF, its component stocks, and companies participating in Value-Up disclosures to promote a culture of Value-Up investment and enhance corporate value in the mid to long term. An Exchange official said, “To raise the second corporate Value-Up Fund worth 300 billion KRW within this week, we plan to sign the fund formation agreement on the 20th and promptly execute the payment of 150 billion KRW from related institutions’ commitments. Private capital Value-Up investments are also expected to begin in earnest, starting with 30 billion KRW of private capital matching funds expected to be executed within this year.”