"Low PBR Companies to Face Naming and Shaming Over Low Corporate Value"

Korea Exchange to Announce Low-PBR Companies Starting November 2

The Korea Exchange announced on September 11, 2026, that it plans to publicly disclose listed companies with a low price-to-book ratio (PBR) starting from November 2, 2026.

The public announcement of low-PBR companies is a system designed to encourage self-driven efforts by companies to enhance their corporate value when their stock prices remain undervalued for a prolonged period.

This is known as the "Naming & Shaming" policy, which aims to prompt change by making public the names of companies that are negligent in efforts to enhance corporate value and exposing them to public criticism.

The targeted companies are those whose accumulated PBR over three years (six half-year periods) falls within the bottom 25% by industry for the KOSPI or the bottom 10% for the KOSDAQ.

Starting from September 14, 2026, companies can individually check their historical PBR values through the Korea Exchange's PBR inquiry service to anticipate whether they will be included in the low-PBR company disclosure list.

The Korea Exchange explained that if a company discloses a plan to improve its PBR, including a broader corporate value enhancement plan, by October 22, 2026, it will be excluded from the low-PBR company disclosure list for one year.

However, companies that meet the low-PBR criteria for 12 consecutive half-years will not be exempted from public disclosure.

The Korea Exchange also announced that it will host an on-site explanatory session titled "Value-Up Week for Regional Listed Companies to Enhance Corporate Value" from September 11 to September 18, 2026.

This explanatory session is open to disclosure officers of KOSPI and KOSDAQ listed companies, will accept advance registrations, and will be held in six sessions, touring six regions nationwide (Seoul, Gyeonggi, North Gyeongsang, South Gyeongsang, Chungcheong, and Jeolla).

This content was produced with the assistance of AI translation services.