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Korea Value-Up Program: Best Stocks to Benefit in 2026

Which Korean stocks benefit most from the Value-Up Program? Analysis of dividend hikes, buybacks, and governance reforms.

πŸ€– AI Analyst4 stocks analyzed⏱ 10 min readπŸ“… 2026-02-04
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What is Korea's Value-Up Program?

Launched in 2024, the Value-Up Program is Korea's most ambitious stock market reform. It encourages companies to increase shareholder returns through dividends, buybacks, and improved governance β€” directly targeting the 'Korea Discount.'

How It Works

  • Companies voluntarily submit Value-Up Plans
  • Tax incentives for companies increasing shareholder returns
  • New Value-Up Index tracking reforming companies
  • Pressure from regulators and institutional investors

    • Top 10 Value-Up Beneficiaries

    1.KB Financial β€” 30%+ payout ratio commitment, 5.8% yield
    2.Hyundai Motor β€” Massive buyback program + dividend hike
    3.Samsung Electronics β€” Special dividends + treasury stock cancellation
    4.POSCO Holdings β€” Dividend stability + shareholder communication
    5.Shinhan Financial β€” Progressive dividend policy
    6.Hana Financial β€” Most aggressive payout increase
    7.SK Telecom β€” Consistent dividends + AI growth
    8.KT&G β€” 60% payout ratio + buybacks
    9.Samsung Fire β€” Insurance sector Value-Up leader
    10.Korean Air β€” Post-merger governance improvement

    Investment Strategy

    The Value-Up trade is still in early innings. Korean financial stocks trade at 0.4-0.6x P/B vs 1.0-1.5x for Japanese bank peers post-reform. The convergence opportunity is significant.

    Comparison: Japan's Experience

    Japan's corporate governance reform (2014-2024) led to:

  • Nikkei 225 doubling from 15,000 to 40,000+
  • P/B ratios expanding from 1.0x to 1.8x
  • Record foreign investment inflows

    • Korea is 2-3 years behind Japan on this path, offering a similar opportunity.

    ⚠️ This information does not constitute investment advice. Investment decisions should be made at your own judgment.

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