FSC Chairman: "Value-up Should Remain a Key Policy Under the Next Administration"

On May 27, Financial Services Commission Chairman Kim Byunghwan stated, "Value-up (enhancing corporate value) is a task that has garnered national consensus," adding, "I believe it will continue to be promoted as a key policy agenda under the next administration."

Yonhap News Agency

Chairman Kim made these remarks while attending the "Value-up 1st Anniversary Seminar" held at the Korea Exchange in Yeouido that afternoon. He said, "Companies participating in the value-up program have shown higher stock return rates compared to non-disclosing companies, and shareholder returns have also increased noticeably."

He emphasized, "Value-up is a structure in which listed companies themselves lead change and the system supports this, marking a major turning point in capital market policy. We are only at the beginning. We must continue our efforts so that these achievements can be felt and spread."

According to the Financial Services Commission, a total of 153 companies have disclosed value-up plans since the value-up disclosure guidelines were finalized on May 24, 2024. As of May 26, the stock return rate for companies participating in value-up was 11.34%, far exceeding the -11.91% return rate for non-disclosing companies. In addition, as of last month, the volume of treasury stock acquisitions and cancellations increased by 2.5 times and 2.2 times, respectively, compared to the previous year, while cash dividends grew by 9.2%.

In particular, Chairman Kim mentioned that various policies to boost the stock market are being proposed ahead of the presidential election, and stressed that the value-up program initiated by the Yoon Suk Yeol administration should continue to be consistently promoted as a major policy by the next government.

He also said, "I expect that measures to support corporate value-up, such as incentives and institutional improvements, will be implemented. More importantly, however, the perception, practices, and culture of companies and the market must change." He went on to urge companies to take the lead in change, stating, "No matter how good the system is, if companies themselves do not internalize the need and value of value-up, it cannot be sustainable."

Additionally, Chairman Kim referred to a recent interview with CNBC in the United States, which described Korea's value-up program as "the most structured effort," rather than a simple imitation of reforms in Japan or China. He concluded his congratulatory remarks by saying, "The future success of our value-up program now depends on what we do going forward."

Meanwhile, at the event, the Korea Exchange recognized ten outstanding companies that contributed to spreading the value-up culture over the past year through their efforts to enhance corporate value. HD Hyundai Electric and KB Financial Group received the Deputy Prime Minister for Economic Affairs Award; Meritz Financial Group, Samyang Foods, and KT&G received the Financial Services Commission Chairman's Award; and Samsung Fire & Marine Insurance, Shinhan Financial Group, Hyundai Glovis, KT, and SK Hynix each received the Korea Exchange Chairman's Award.