Record-High Share Buybacks and Cancellations Last Year... Value-Up Index Surges 89%

Due to the implementation of the corporate value enhancement program, the scale of share buybacks and cancellations reached an all-time high last year. Additionally, the Korea Value-Up Index rose by 89.4%, surpassing the growth rate of the KOSPI.

Korea Exchange in Yeouido, Seoul. Photo by Jin-Hyung Kang aymsdream@

On January 8, the Korea Exchange announced that share buybacks in the previous year amounted to 20.1 trillion won, and share cancellations reached 21.4 trillion won, both marking record highs. Cash dividends paid by listed companies also continued to expand, totaling 50.9 trillion won last year, an increase of 11.1% compared to the previous year.

Since the launch of the corporate value enhancement program in May 2024, a cumulative total of 174 companies had disclosed their corporate value enhancement plans by the end of last year. Of these, 171 companies submitted official disclosures, while 3 companies submitted preliminary disclosures. Notably, in the second year of the program, 59 companies submitted periodic disclosures to review the outcomes and implementation status of their efforts to enhance corporate value since their initial announcements, thereby strengthening ongoing communication with investors.

By market, among the 171 companies that made official disclosures, 130 were listed on the KOSPI and 41 on the KOSDAQ. The market capitalization of these companies accounted for 44.5% of the total market, with KOSPI-listed companies representing 50.2% of the KOSPI market capitalization. Among the officially disclosing companies, large-cap firms with a market capitalization of 1 trillion won or more made up a high proportion at 63.7%, while small-cap firms with a market capitalization of less than 100 billion won accounted for only 5.3%. Of the 171 companies that officially disclosed their corporate value enhancement plans, 79 submitted English-language disclosures, including 65 KOSPI-listed companies and 14 KOSDAQ-listed companies.

The Value-Up Index, composed of companies with strong corporate value, surged 89.4% year-on-year to close at a record high of 1,797.52 points, outperforming the KOSPI's growth rate (75.6%) by 13.8 percentage points during the same period.

As of the end of last year, the net asset value of Value-Up Exchange Traded Funds (ETFs) reached 1.3 trillion won, up 162.5% from their initial launch. The share of annual average foreign trading value also increased from 9.1% in 2024 to 18.8% in 2025.

Key stock market indicators such as the price-to-book ratio (PBR) and price-to-earnings ratio (PER) also improved significantly compared to the previous year. As of the end of last year, the PBR and PER of the MSCI Korea Index stood at 1.59 times and 17.47 times, respectively. The 10-year average was a PBR of 1.09 times and a PER of 14.32 times, while in 2024, the PBR was 0.88 times and the PER was 11.37 times.

This year, the Korea Exchange plans to actively encourage participation in the corporate value enhancement program as it enters its third year, aiming to ensure the smooth implementation of the government's capital market revitalization policies and to foster a culture of shareholder value respect within the capital market.

First, during the first quarter, the exchange will revise the "Corporate Value Enhancement Plan Guidelines" and the "Value-Up Excellent Company Selection Criteria" to reflect key amendments to the Commercial Act, such as enhanced fiduciary duties to shareholders. This is intended to support improvements in corporate governance and the protection of shareholder rights for listed companies.

In May, the exchange plans to select and commend outstanding companies through both quantitative and qualitative assessments among those that disclosed corporate value enhancement plans last year. Furthermore, during the regular index rebalancing in June, the index will be restructured to focus on companies that have disclosed corporate value enhancement plans.