Glossary › Corporate Value-up Program (Korea)
What is Corporate Value-up Program (Korea)?
Korea's Corporate Value-up Program encourages listed companies to disclose plans to raise their valuation through capital efficiency and shareholder returns.
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The Corporate Value-up Program is a policy initiative launched by South Korea’s Financial Services Commission and the Korea Exchange in 2024. It aims to narrow the “Korea discount” by encouraging listed companies to improve capital efficiency and shareholder returns.
How it works
- Voluntary disclosure: companies are encouraged to publish “value-up plans” describing targets such as return on equity, dividend policy, and share buybacks or cancellations, and to report on progress.
- Index: the exchange introduced a Korea Value-up Index of companies judged to meet value-related criteria, which index funds can track.
- Incentives and guidance: authorities have discussed and adjusted incentives, disclosure guidelines, and related reforms over time.
What to watch
- Whether a company’s plan contains specific, measurable targets.
- Follow-through: actual dividend changes and cancellation of repurchased shares (buybacks that are not cancelled have a smaller effect on share count).
- Related legal changes on governance and minority-shareholder protection.
Where to verify
Value-up plans and progress reports are filed as disclosures on DART and published through the exchange. SignalStack reports link to the original filings.
This glossary entry is general information, not investment advice.