The Korea Exchange (KRX) will hold the “Visiting Listed Companies for Corporate Valuation Upgrade Meetings” Event for companies on the KOSPI and KOSDAQ Markets from Sept. 30 to Oct. 29.
These meetings are designed to have KRX officials answer questions about the KRX’s Corporate Value-up Up Program and encourage active participation by directly visiting public disclosure managers of local companies.
The event will be held in six regions nationwide — Seoul, Gyeonggi, Chungcheong, Gyeongbuk, Gyeongnam and Jeolla. It will be held a total of 11 times - six times for KOSPI-listed companies and five times for KOSDAQ-listed companies.
Around 10 companies are scheduled to attend each meeting.
The meetings will explain the main contents of the value-up program, the status of listed companies’ participation and the status of Korea Value-up Index and ETF product development.
KRX is planning to listen to the status of value-up disclosures by each company and their difficulties to help listed companies easily access the value-up program.
The KRX expects that the meeting will provide an opportunity for regional companies to actively participate in the Valuation Up program as regional companies have had difficulty attending briefings on the program due to geographical limitations.
The Korea Exchange (KRX) unveiled the Korea Value-up Index (KVI) on Sept. 24 as part of efforts to address a persistent undervaluation of the Korean stock market. The index consists of 100 issuing companies.
The KRX began offering real-time indexes to domestic and foreign investors and, in early November, will list exchange-traded funds (ETFs) and index futures that track the Value-up index.
Jung Eun-bo, chairman of the KRX, held a briefing at the exchange’s Seoul office later in the day to announce the stocks included in the new index and how the it’s calculated.
“We finally selected 100 stocks in consideration of strengthening differentiation from existing representative indexes, convenience of fund management and an improvement in index performance,” Jung said.
“The stocks are evenly representative of all industries such as information technology, industrial goods, healthcare, finance and consumer staples. The ratio of the number of stocks in the index to the number of stocks in KOSDAQ Stock Market is approximately 7:3.”
In addition to market representativeness (market capitalizations, trading volume and liquidity ratios), the Value-up Index’s stock selection methodology incorporates qualitative requirements such as profitability, shareholder return, market valuations and capital efficiency.
Market representativeness cover the 400th largest companies in KOSPI Market and KOSDAQ Market in terms of market capitalizations and profitability excludes companies that racked up losses.
By granting a special exception to include companies that disclosed their corporate value-up plans and applying relative evaluation of PBR for different industries among others, not only companies with outstanding corporate value but promising companies with growth potential in their corporate value are to be included.
Global Derivatives Forum
The KRX announced that it held the 2024 KRX Global Derivatives Forum at its headquarters in the Busan International Financial Center on Sept. 25.
The KRX Global Derivatives Forum is an event to discuss market issues and collect opinions from major overseas institutional investors in order to create a trading environment that can satisfy international standards.
The forum was first held in 2016 and is now in its sixth year.
The meeting was attended by more than 40 global institutional investors of 17 firms from Singapore, Australia, Hong Kong and other countries.
The participants reportedly discussed making an improvement to trading systems, IT infrastructure and product development, and how to develop the Korean derivatives market in the long term.
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