The attached booklet contains guidelines for corporate value-up plan intended to promote listed companies' voluntary efforts to boost valuations and enhance shareholder returns.

It is of utmost importance that listed companies make efforts to enhance corporate value in order to address the “Korea discount,” which is the tendency of Korean stocks to be valued lower than international counterparts. Corporate value is defined as the aggregate value determined by considering the company’s assets, future cash flow and other relevant factors. Corporate value is evaluated based on various aspects including management performance, growth potential, market conditions and social responsibilities. Comprehensive efforts are required to enhance corporate value, including efficient use of capital financed by the stock market, improving communication with the shareholders, and increasing shareholder returns.

The “Corporate Value-up Plan” is a voluntary development strategy that listed companies formulate to enhance their value. When companies develop a meaningful “Corporate Value-up Plan” and engage in active communication of the plan with the market based on their plans, it will facilitate proper valuation from the investors, in turn leading to smoother financing for the companies. The establishment of such virtuous cycle in the capital market will bring about a win-win effect for the companies, investors and the market, thus enabling Korean listed companies and the entire stock market to recognize their fair value.

Please see the attached PDF for details.