Hanwha Asset Management PLUS Korea Value-Up ETF Newly Listed

Hanwha Asset Management announced on the 4th that it will list the ‘PLUS Korea Value-Up’ Exchange-Traded Fund (ETF) on the Korea Composite Stock Price Index (KOSPI) market at the Korea Capital Market Conference (KCMC 2024). On the same day, 12 asset management companies simultaneously listed ETFs tracking the ‘Korea Value-Up Index’.

The ‘PLUS Korea Value-Up ETF’ is a passive ETF that tracks the ‘Korea Value-Up Index.’ Its main constituent stocks include 100 companies such as ▲SK Hynix ▲Samsung Electronics ▲Hyundai Motor ▲Celltrion ▲Kia, with a total expense ratio of 0.009%. The distribution date is the 15th of every month, with dividends paid monthly.

The ETF actively includes not only companies with excellent corporate value but also those expected to have future corporate value growth. Hanwha Asset Management explained that as the Korean stock market continues qualitative growth, the value of major undervalued constituent stocks is expected to rise.

The constituents of the ‘Korea Value-Up Index’ are selected through a five-step screening process. Companies are evaluated based on ▲market representativeness (market capitalization) ▲profitability ▲shareholder returns ▲market valuation (PBR) ▲capital efficiency (ROE) to select outstanding companies. Constituents are regularly changed once a year. The maximum weight of an individual stock within the index is limited to 15%.

Benefits from the government’s active value-up support policies are also expected. Hanwha Asset Management anticipates that with the continuous announcement of policies promoting shareholder returns, such as preferential treatment for value-up disclosure companies and award-winning companies, and the introduction of corporate tax special provisions, companies’ voluntary efforts to enhance value will continue. In particular, individual shareholders of listed companies expanding shareholder returns can benefit from preferential low tax rates on dividends, which is expected to further increase investment.

Geum Jeong-seop, Head of the ETF Business Division at Hanwha Asset Management, said, “The PBR (price-to-book ratio) of KOSPI, Korea’s representative index, is 0.9 times, indicating that asset values are undervalued compared to major developed countries. This means there is significant potential for stock price appreciation if value is properly recognized.” He added, “With this simultaneous listing, we expect the value-up effect through capital inflow to be maximized, allowing domestic companies to receive fair value assessments.”

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