Page 3 - Corporate Value Up Program News Today

(Bloomberg) -- South Korean companies that have not seen growth in a long time risk being dropped from the stock exchange, the nation’s financial watchdog said. Shares rallied. Most Read from BloombergApple to Wind Down Electric Car Effort After Decadelong OdysseyHow Much Wealth You Need to Join the Richest 1% Around the WorldOffice Tower Deal for $1 Reveals Anxiety Among Longtime BuyersA Spike in Heart Disease Deaths Since Covid Is Puzzling ScientistsApple's Scrapped Car Project Mea...

A revision of tax policies scheduled for the latter half of the year is expected to come into greater focus, prompted largely by the disappointing announcement of the Corporate Value-up Program, market watchers said Tuesday.

Reforms floated last month by South Korean President Yoon Suk-yeol may not continue to boost the Seoul bourse, analysts say.

Jeong Eun-bo, the new CEO of the Korea Exchange (KRX) said Thursday, that he will offer tailor-made services for firms listed on the three KRX-operated bourses — the KOSPI, the Kosdaq and KONEX — in line with the government’s efforts to boost undervalued stocks.

The governments plan to adopt the Corporate Value-up Program, announced on Jan. 24 to bolster the stagnating stock market, is drawing contrasting reactions from foreign investors and domestic retail investors. While foreign investors are amassing shares, retail investors are shifting their investments abroad after obtaining profits from the domestic market.

As a retail investor who holds more than a dozen stocks of large-cap companies here, its good to see the local stock markets have rallied over the past two weeks, fueled by President Yoon Suk Yeols comments that the government will do more to resolve the decades-old Korea discount.

The government’s forthcoming initiative to tackle the so-called Korea discount is prompting speculation that it may unintentionally encourage investors to dump their stocks in the secondary Kosdaq bourse, thereby causing it to fall sharply.

Korea is considering benchmarking the Japanese stock market to address the challenges faced by the Korea Composite Stock Price Index (KOSPI), which has displayed the sharpest decline among major bourses in the G20 economies this year, according to multiple financial authorities and sources, Wednesday.