South Korea¡¯s much-hyped plan to push companies to improve management and corporate governance disappointed investors with a lack of enforcement and concrete details.
Companies with management practices that prioritize shareholder returns will be given ¡°bold incentives¡± and tax benefits under the the ¡°Corporate Value-up Program,¡± the Financial Services Commission said in a statement Monday. The guidelines for the program will be finalized in June, the financial regulator said.
The nation will also introduce the ¡°Korea Value-up Index¡± in the third quarter ¡ª similar to Japan¡¯s JPX Prime 150 Index and composed of best-practicing companies ¡ª that will be used by pension funds and other institutional investors as a benchmark. New exchange-traded funds will be able to track the index, the FSC said.
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