The Korea Exchange (KRX) has released its report on the progress of the Corporate Value Enhancement Program for the first half of 2024. From January to June, the program has seen substantial engagement and success, reflecting positively on the market trends and corporate activities.
The KRX introduced several initiatives to support listed companies, including seminars, advisory sessions, and regional briefings. The exchange gathered extensive feedback from market participants to finalize comprehensive guidelines, which were released on May 27, 2024. These efforts were complemented by targeted education programs for company representatives, enhancing their ability to manage and disclose corporate value strategies effectively .
A notable highlight of H1 2024 was the significant increase in stock buyback and cancellation activities. Companies bought back NT$2.2 trillion worth of shares, marking a 25.1% increase from the previous year. Share cancellations skyrocketed by 190.5%, totaling NT$7.0 trillion. Major contributions came from industry giants such as SK Innovation, Samsung C&T, and Meritz Financial Group .
Dividend payouts also saw a moderate increase, with total distributions reaching NT$34.2 trillion, a 3.7% rise from H1 2023. This growth underscores the rising focus on shareholder returns among listed companies.
The market responded positively to these developments, with the KOSPI index surpassing the 2,800 mark, driven by robust corporate earnings and increased foreign investment. Foreign investors’ net purchases amounted to NT$22.4 trillion by the end of June, significantly boosting market confidence .
Looking ahead, the KRX plans to introduce the “KRX Korea Value-Up Index” in Q3 and launch related financial products in Q4, including ETFs and derivatives. These initiatives aim to further attract institutional investors and enhance the market’s appeal .
