Second Year of Value-Up Program... Listed Companies Call for Tax Support on Dividends and Treasury Stock Cancellations

Jung Eunbo, Chairman of the Korea Exchange, Holds Meeting
"Continuous Improvement and Supplementation of the Value-Up Program"

The Korea Exchange announced on the 19th that it held a meeting for KOSPI-listed companies, presided over by Chairman Jung Eunbo, to mark the second year of the corporate value enhancement (Value-Up) program.

Jung Eunbo, Chairman of the Korea Exchange, is delivering the opening remarks at the KOSPI listed companies meeting for corporate value enhancement held at the Korea Exchange Seoul Headquarters in Yeongdeungpo-gu, Seoul on the 19th. Photo by Yonhap News

Companies that attended the meeting included Nongshim, Korean Air, Meritz Financial Group, Samsung Electronics, Amorepacific, Chong Kun Dang, Korea Aerospace Industries, GS, and HD Hyundai Heavy Industries. Chairman Jung Eunbo stated, "Since the introduction of value-up disclosures at the end of May last year, the value-up program has provided an opportunity to address the capital market discount (undervaluation). In particular, a culture of respecting shareholder value is taking root, as evidenced by increases in treasury stock acquisition, cancellation, and cash dividends, as well as active social discussions on improving corporate governance."

Starting with KB Financial Group's value-up disclosure on May 27 last year, a total of 118 KOSPI-listed companies had participated in value-up disclosures (114 official disclosures and 4 preliminary disclosures) as of the 16th. These companies account for 49.4% of the KOSPI market capitalization.

Representatives of the listed companies in attendance responded that value-up disclosures have had a positive effect by increasing communication with shareholders and enhancing corporate credibility, and pledged to strive to achieve the goals set forth in their value-up disclosures. They also suggested that expanding incentives, such as tax support for dividends and treasury stock cancellations, is necessary to encourage more listed companies to participate in the value-up program. The Korea Exchange stated, "We will continue to improve and supplement the corporate value-up program by listening to the opinions of market participants."

Meanwhile, the Korea Exchange will hold a seminar on the 27th to commemorate the first anniversary of the implementation of the value-up program, where it will review the current status of the program and discuss its future direction.