Korea Exchange Launches the Disclosure of Corporate Value Up Program on KIND System

• The Korea Exchange introduced the Corporate Value Up program on the KIND website. This is a voluntary system aimed at boosting the corporate value of listed Korean companies.

• Five key investment indicators for the 2,400+ listed Korean companies include PBR, PER, ROE, dividend payout, and dividend yield. The detailed data these indicators can be easily downloaded on excel.

• Corporate Value Up program is a marathon, not a sprint. In this race, the runners (Korean companies) also need some water (such as improvements to dividend/corporate income tax policy).

Korea Exchange Introduces Corporate Value Up Program on the KIND Website

On 25 May, the Korea Exchange introduced the Corporate Value Up program on the KIND (Korea Investors' Network of Disclosure) website.This is a voluntary system aimed at boosting the corporate value of listed companies in Korea.

Source: Corporate Disclosure Channel KIND (krx.co.kr)

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Korea Exchange has provided two excellent presentations on the Corporate Value Up program which can be foundhere and also attached to this insight. Corporate Value is defined as total value based on the company's asset, future cash flow, etc. It identifies the following major ways to enchance corporate value:

• Increase profitability

• Enhance growth potential

• Improve corporate governance

• Improve market environment

• Fulfillment of social responsibility, etc.

Source: KRX

The Korea Exchange recommends a regular disclosure by the Korean companies (e.g., once a year) for these corporate value up improvements. The companies are expected to disclose their efforts to improve corporate value on their own websites as well as on the KRX KIND system.

Source: KRX

The 6 key elements of the corporate value up plan are as follows:

1. Company overview

2. Status

   • Business Status

   • Financial Indicators

   • Non-Financial Indicators

3. Goal Setting

4. Planning

5. Implementation Evaluation

6. Communication