Only 13 companies have actually disclosed their plans as of one day before the deadline for submitting "PBR improvement plans," which qualify them for an exemption from being listed on the low PBR (price-to-book ratio) company list, according to a tally.
While more than 200 companies are expected to be included on the list, this means that fewer than 10% have taken proactive measures so far.
According to the Financial Supervisory Service's electronic disclosure system as of the 21st, 13 companies had submitted PBR improvement plans by the close of regular trading at 3:30 p.m. on that day. The companies are Woojin I&NS, GS Global, Top Engineering, KG Steel, BC World Pharmaceutical, Cherry Buro, F&F Holdings, Hanwha General Insurance, Deutsche Motors, Asia Tech, Dongkuk Holdings, Dongkuk Steel, and Dongkuk CM. These companies will be excluded from the low PBR company list, which takes effect on the 2nd of next month, for one year.
These companies disclosed their short-term and medium-to-long-term PBR targets, as well as execution plans for improvement. The disclosure targets for low PBR are companies that fall within the bottom 25% by sector in the KOSPI market and the bottom 10% in the KOSDAQ market over a cumulative three-year period.
The list is posted on the exchange's website on the first trading day of May and November each year, and a "low PBR company" label is attached to securities firms' HTS (Home Trading System) and MTS (Mobile Trading System). The estimated number of disclosure targets by the exchange is approximately 220 companies.
Considering that this is the first implementation, financial authorities have decided to grant a one-year exemption from publication to companies that disclose a corporate valuation enhancement plan including an improvement plan by the 22nd. There is no obligation to fulfill the improvement plan. However, companies that have been in a low PBR state for more than six cumulative years (12 half-years) are excluded from the exemption targets.
The exchange expects disclosures to surge on the deadline day of the 22nd. Choe Sung-gyu, head of the Korea Exchange value-up program Je Do (Team Lead), said, "We received inquiries from so many companies that the phone lines did not stop ringing until last week."
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