Hyunjung Kim Proposes Bill Mandating Value-Up Disclosures for Listed Companies with PBR Below 1

by Park SeungUk

Published 06 Mar.2026 11:31(KST)

The political sphere is moving to amend relevant laws to mandate value-up disclosures for listed companies whose price-to-book ratio (PBR) has remained below 1 for over two years.

Photo of Hyunjung Kim, member of the Democratic Party of Korea. Office of Hyunjung Kim

On March 6, Hyunjung Kim, a member of the Korea Premium K-Capital Market Special Committee and the Democratic Party of Korea, sponsored a partial amendment bill to the Financial Investment Services and Capital Markets Act that contains these provisions. This is the second so-called “Stock Price Suppression Prevention Act,” following the earlier bill on the linkage between inheritance and gift taxes.

Although recent shareholder return policies-including the third amendment to the Commercial Act-have been introduced, it has been pointed out that some listed companies have continued to post a PBR below 1 for extended periods. As a result, suspicions are mounting that, in situations where a company’s market value does not even reach its net asset value, controlling shareholders such as owner families may be intentionally keeping stock prices suppressed for their own benefit.

The purpose of this amendment is to strengthen value-up factors by requiring listed companies with a PBR below 1 for two consecutive fiscal years to publicly disclose plans to enhance corporate value. The corporate value enhancement plan must include specific measures such as plans for the disposition of distributable profits, plans for dividends and the acquisition, cancellation, or disposition of treasury shares, as well as business structure improvement plans.

Assemblywoman Kim stated, “This amendment is an institutional device to correct suspicions of intentional stock price suppression by listed companies and to strengthen corporate responsibility to shareholders,” adding, “By pursuing this in tandem with the amendment to the Inheritance and Gift Tax Act, we aim to boost the value of undervalued companies.”