Korea Exchange Announces 151 Low-PBR Companies for First Time... 96 on KOSPI, 55 on KOSDAQ

151 Companies Confirmed in Bottom Tier Over Three Years
34 Excluded from List After Disclosing Value-Up Plans
MTS/HTS Tags and One-on-One Consulting to Be Provided

The Korea Exchange selected and announced 151 companies with low price-to-book ratios (PBRs) for the first time: 96 listed on the KOSPI market and 55 on the KOSDAQ market.

According to the Korea Exchange on November 1, the selection of low-PBR companies is a follow-up measure to the “Plan to Improve the Fundamentals of the Capital Market.” It is designed to encourage companies that have been undervalued for a long time to voluntarily enhance their corporate value. Companies qualify if their PBRs have ranked in the bottom 25% on the KOSPI market or the bottom 10% on the KOSDAQ market for a cumulative three years, based on market and industry. Industries are classified into 11 groups under the Global Industry Classification Standard (GICS).

The pool consisted of 2,431 listed companies as of October 22—779 on the KOSPI market and 1,652 on the KOSDAQ market—excluding companies facing grounds for delisting and others. Of these, 185 companies—115 on the KOSPI market and 70 on the KOSDAQ market—met the low-PBR criteria. These companies had ranked in the bottom tier for six consecutive half-year periods or in six of the past seven half-year periods.

A total of 62 companies had disclosed corporate value enhancement plans that included PBR improvement plans. Of these, 34 companies—19 on the KOSPI market and 15 on the KOSDAQ market—were excluded from the announcement. Another 15 companies—10 on the KOSPI market and five on the KOSDAQ market—were not excluded despite having submitted plans, because they had ranked in the bottom 25% on the KOSPI market or the bottom 10% on the KOSDAQ market for a cumulative six years. The remaining 13 companies—five on the KOSPI market and eight on the KOSDAQ market—did not meet the low-PBR criteria.

On the KOSPI market, the industries with the most companies included in the announcement were materials with 23, industrials with 22, consumer discretionary with 18, and consumer staples with 12. On the KOSDAQ market, the leading industries were information technology with 17, industrials with 10, health care with 10, and materials with six.

On the KOSPI market, SUN&L had the lowest PBR at 0.06, followed by Sungchang Enterprise Holdings at 0.10 and Korea Electronic Holdings at 0.10. On the KOSDAQ market, AppTocrom had the lowest PBR at 0.07, followed by Ocean In W at 0.09 and SG&G at 0.10.

The list will be posted on the Value-up page of the Korea Investor's Network for Disclosure (KIND) until the day before the next announcement, scheduled for May 4, 2027. Low-PBR tags will appear on securities firms' mobile and home trading systems (MTS and HTS). The timing and format of the tags may vary by securities firm.

The Korea Exchange plans to provide all 151 announced companies with customized, one-on-one consulting on PBR improvement next year. The consulting will help them analyze the causes of their low PBRs, set targets, and draw up plans.

The Financial Services Commission is working to revise the Stewardship Code guidelines to encourage institutional investors to engage with low-PBR companies as shareholders. It is also pursuing a plan to identify and promote best practices through implementation reviews.

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