Shinhan Projects 1000-Point KOSPI Boost from Value-Up Initiatives

A research institute under Shinhan Financial Group recently released a report titled 'Conditions for Structural Transformation of the Korean Stock Market'. The report analyzes that the 'corporate value enhancement (value-up)' efforts by the government and corporations will have a positive impact on the domestic stock market (KOSPI), equivalent to a 1,000-point rise.

The institute stated that the Price-to-Book Ratio (PBR) of KOSPI-listed companies rose by 0.55x, from 0.85x before the value-up program introduction to 1.4x after. An analysis of the PBR rise contribution showed semiconductors accounted for 0.35x, and the value-up program's effect for 0.2x.

Consequently, the institute predicted that the KOSPI is unlikely to return to its previous box-trading ranges of 1,500-3,000 points due to the effects of value-up policies.