Expansion of Disclosure of Low-PBR Listed Companies Starting in November
Disclosure of low-PBR listed companies: from November, a list of long-term undervalued companies will be released periodically. Check the KOSPI and KOSDAQ coverage and even the exemption criteria to prepare for market changes.
The Financial Services Commission and the Korea Exchange will periodically disclose a list of listed companies with low PBR starting in November. The targets are companies whose PBR has been low for three consecutive years within the same industry, corresponding to the bottom 25% on the KOSPI and the bottom 10% on the KOSDAQ.
This system is a followup measure to the plan announced in March to enhance corporate value. The financial authorities explained that the purpose is to identify companies that remain undervalued over a long period rather than those with shortterm fluctuations, thereby increasing market attention and pressure for improvement.
As of May, the number of companies subject to disclosure is estimated at 80 to 130 on the KOSPI and 40 to 90 on the KOSDAQ. The exchange plans to defer disclosure for one year for companies that have announced a corporate value enhancement plan, and to include companies whose lowPBR status has continued for six years or more regardless of whether they have disclosed such a plan.