Korea's Value-up program and the 'Korea discount'
Reviewed October 15, 2026
Korean shares have long traded at lower valuations than similar companies elsewhere. This is called the 'Korea discount'. The government's Value-up program aims to narrow it.
General information only, not investment, legal or tax advice. Rules change: check the official sources linked here and your broker before you act.
The Korea discount
Reasons usually given include low dividend payouts and buybacks, group structures that put controlling families ahead of minority shareholders, many companies trading below book value, and geopolitical risk. None of these is true of every company.
The Corporate Value-up program (2024)
Announced by the Financial Services Commission in February 2024, the program asks listed companies to publish their own plans to raise shareholder value: targets for return on equity, payouts, buybacks and treasury share cancellation. Plans are voluntary and published on the Korea Exchange's disclosure system.
The Korea Value-up Index
In September 2024 the Korea Exchange launched the Korea Value-up Index of companies judged to be doing well on these measures, and funds tracking it followed.
Governance changes
In 2025 the Commercial Act was amended so that directors owe a duty to shareholders as well as to the company, and further changes on how boards are elected have followed. More cancellation of treasury shares (자사주 소각) has been another visible effect.
Questions people ask
What is the Korea discount?
The tendency of Korean shares to trade at lower valuations than similar companies in other markets, often blamed on low payouts, governance and geopolitical risk.
What is the Korea Value-up program?
A government program started in 2024 that encourages listed companies to publish plans to raise shareholder value, such as higher dividends, buybacks and better returns on equity.
Is the Value-up program mandatory?
Publishing a value-up plan is voluntary.