Korea Exchange to name persistently low-PBR companies from November

Korea Exchange will begin publishing a list of listed companies whose price-to-book ratios remain low, with the first disclosure scheduled for November. The measure is part of a follow-up to the government's capital-market reform plan announced in March and is intended to encourage companies to take voluntary steps to improve corporate value.

How the disclosure system works

Companies that publish a corporate-value enhancement plan in advance will receive a one-year exemption from appearing on the low-PBR list. Korea Exchange said it will divide companies by market and industry when making the disclosures and plans to update the list every half year. It will also hold regional briefings to explain the system to listed companies before implementation.

The policy adds a public reputational mechanism to Korea's broader push to reduce the so-called Korea discount. For investors, the November disclosure will offer a new way to identify companies facing pressure to explain persistent undervaluation. For issuers, the one-year exemption gives a direct incentive to publish a value-up plan before the first list appears.