Approach Mainly Stocks with Favorable Supply and Demand in the Value-Up Index

This Year’s Strong Performance of Value-Up Related Stocks

Korea Investment & Securities analyzed on the 27th that investors should pay attention to stocks with favorable supply and demand included in the Value-Up Index.

According to Korea Investment & Securities, comparing this year's major stock market indices, the Nasdaq recorded the highest performance among the three major U.S. indices. In contrast, in Korea, the KOSDAQ underperformed the KOSPI, and growth stocks underperformed value stocks.

In a report released that day, Dongchan Yeom, a researcher at Korea Investment & Securities, stated, "Large-cap value stocks showed particularly favorable performance," adding, "One of the most important keywords describing the Korean stock market in 2024 is the Value-Up Program, which we would like to remind again."

He expressed regret that the shareholder return promotion tax system included in the tax law amendment bill disclosed in July this year was completely removed. The draft included provisions to reduce corporate tax for companies that increased shareholder returns such as dividend increases or share buybacks, and to reduce dividend income tax for investors holding shares of those companies, but these provisions were ultimately not included in the final bill passed by the National Assembly.

Researcher Yeom said, "Although it is unfortunate that the tax law amendment was not enacted, stocks related to the Value-Up Index are still showing favorable performance," adding, "It is encouraging that despite the Value-Up Index showing a sluggish trend, funds have flowed in and the ETF’s assets under management (AUM) have increased. Especially, the fact that pension funds are net buyers of this ETF is also evaluated positively."

He judged that stocks included in the Value-Up Index are positive in that there is ETF buying demand. He said, "Additionally, stocks included in the Value-Up Index that are being directly net purchased by foreigners and pension funds are also evaluated positively," pointing out, "The six stocks JYP Ent., NCSoft, KEPCO KPS, Hanwha Aerospace, Samyang Foods, and Rino Industrial fall into this category and will be stocks to watch from a supply and demand perspective."

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