Value-Up Fund Raised 200 Billion KRW "ETF and ETN to Be Listed Next Month"

Jung Eun-bo Chairman "Will Make Efforts Including Tax Support Proposals... Expecting Value-Up Momentum"

The Korea Exchange and related securities institutions will invest in a value-up fund to promote the spread of a value-up investment culture.

Five related organizations participating in the corporate value-up fund formation and representatives of 12 issuers launching the Korea Value-Up Index ETF attended the 'Value-Up ETF Issuer Representatives Meeting.'
[Photo by Korea Exchange]

On the 31st, the Korea Exchange announced that it signed a business agreement with Korea Securities Finance, Korea Securities Depository, Korea Financial Investment Association, Koscom, and others to establish a corporate value-up fund to support the value-up program.

The corporate value-up fund will be established with 100 billion KRW contributed by securities-related institutions and matched with private funds, totaling over 200 billion KRW. The main investment targets are the value-up index exchange-traded funds (ETFs) and their constituent stocks, and it also plans to invest in stocks that have already made value-up disclosures but are not yet included in the index.

Additionally, on the 4th of next month, the Exchange will list 12 ETFs based on the Korea Value-Up Index and one exchange-traded note (ETN) on the KOSPI market. Nine of these will be passive, and three will be active.

The passive ETF issuers and managers are Samsung Asset Management, Mirae Asset Global Investments, KB Asset Management, Korea Investment Management, Shinhan Asset Management, Kiwoom Asset Management, Hanwha Asset Management, NH-Amundi Asset Management, and Hana Asset Management.

The active ETF issuers and managers are Timefolio Asset Management, Samsung Active Asset Management, and Truston Asset Management, while the ETN will be issued by Samsung Securities.

A Korea Exchange official stated, "The corporate value-up fund plans to utilize private pension investment pools and will be set up in line with the listing of related ETFs, aiming to actively attract private funds and make investments within this year." He added, "The fund to be established this time is expected to serve as a catalyst for spreading the value-up investment culture and enhancing the mid- to long-term domestic corporate value." He also said, "We will prepare various support measures to ensure the success of the value-up program together with related institutions and the industry."

Jung Eun-bo, Chairman of the Korea Exchange, said, "With the establishment of the corporate value-up fund and the launch of ETFs, an investment atmosphere for companies participating in value-up will be created, increasing the incentive for voluntary participation by companies and giving momentum to the value-up program." He continued, "We plan to additionally promote the development of follow-up indices according to market demand. Furthermore, we will strive to maintain market interest in value-up by proposing tax support for value-up ETFs." He concluded, "We expect that the launch of this value-up fund and ETFs will sustain the value-up momentum in our stock market."

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