A data-driven ranking of the 200 largest KOSPI companies by governance score — identifying who is genuinely improving shareholder value.
A Daljayo Research Report
Korea's Value-Up program is gaining meaningful traction among large-cap companies, with our inaugural scorecard revealing encouraging progress in the first quarter of 2026. Among the 200 largest KOSPI companies by market capitalization, we find an average governance score of 59.4 out of 100, with 102 companies scoring above 60 and 59 achieving scores of 80 or higher.
The standout finding: thirteen companies achieved perfect 100-point scores, demonstrating comprehensive commitment to the Value-Up principles through formal program participation, robust dividend policies, active share buyback programs, and improved board governance. Financial services companies dominate the top performers, with seven of the top thirteen coming from this sector, suggesting regulatory pressure and institutional investor focus are driving faster adoption.
However, significant gaps remain. While 269 companies across our broader KOSPI universe have filed Value-Up plans, execution varies widely. The bottom decile averages just 16 points, highlighting the polarized nature of current adoption. For global investors evaluating Korean equities, our scorecard provides a framework for identifying companies genuinely committed to shareholder value creation versus those merely paying lip service to the initiative.
This represents the beginning of a multi-year transformation in Korean corporate governance. Early movers are establishing competitive advantages in cost of capital and institutional investor appeal.
Beta Release Notice: This inaugural scorecard represents version 1.0 of our Value-Up assessment framework. We acknowledge current limitations and will refine our methodology based on market feedback and evolving disclosure standards.
Our scoring system evaluates five key criteria that capture the spirit and substance of Korea's Value-Up program:
Value-Up Program Disclosure (25 points): Companies receive full points for filing comprehensive Value-Up plans with specific targets and timelines. We assess quality of disclosure, measurability of commitments, and board-level endorsement. This carries the highest weighting as formal participation signals management commitment to the broader initiative.
Dividend Policy Enhancement (20 points): We evaluate dividend increases, payout ratio improvements, and clarity of dividend policy communication. Companies demonstrating consistent dividend growth or establishing progressive dividend policies score highest. Special dividends and one-time distributions receive partial credit.
Share Buyback Activity (20 points): Active buyback programs with clear rationale and execution receive full points. We assess program size relative to market cap, execution consistency, and whether buybacks represent genuine capital allocation strategy versus market manipulation.
Board Independence (20 points): This criterion evaluates independent director ratios, board committee structure, and governance improvements. Companies with majority independent boards and robust audit/compensation committees score highest. Recent governance reforms receive additional consideration.
Price-to-Book Improvement (15 points): While early in the Value-Up cycle, we assess trajectory and management commentary around book value efficiency. This criterion will gain importance as programs mature.
Current Limitations: Our v1.0 scorecard relies heavily on disclosed information and may not capture all value-creation activities. Small-cap coverage remains limited, and our P/B methodology requires refinement as more historical data becomes available.
Thirteen companies achieved perfect 100-point scores in our inaugural assessment, with an additional seven scoring 85 points, demonstrating that excellence in Value-Up execution is achievable across multiple business models and sectors.
The Perfect Score Club represents diverse industries but shares common characteristics: comprehensive Value-Up program participation, active capital return policies, and strong governance frameworks. Leading this group, HANJINKAL (180640), AMOREPACIFIC Holdings (002790), and Korean Reinsurance (003690) exemplify different paths to excellence.
Financial services companies dominate the top tier, with Hana Financial Group (086790), KB Financial Group (105560), LS Corp. (006260), NH Investment & Securities (005940), and JB Financial Group (175330) all achieving perfect scores. This sector's leadership reflects regulatory pressure, institutional investor scrutiny, and the relative ease of implementing capital return programs in cash-generative financial businesses.
The presence of Samsung Electronics (005930) among perfect scorers carries particular significance given its market weight and historical governance challenges. The company's comprehensive Value-Up commitment, including enhanced dividend policy and active buybacks, signals broader chaebol engagement with shareholder-friendly practices.
Consumer-focused companies also feature prominently. COWAY (021240) and SHINSEGAE (004170) demonstrate how consumer brands can leverage Value-Up programs to enhance institutional appeal while maintaining growth investment. AMOREPACIFIC Corp. (090430), alongside its holding company, shows coordinated group-level commitment to the initiative.
HANWHA AEROSPACE (012450) represents the defense/aerospace sector's potential for Value-Up leadership, while Misto Holdings (081660) scored 90 points, proving that smaller players can compete with chaebols on governance metrics.
The 85-point tier includes notable names like KT Corporation (030200) in telecommunications and Korea Zinc (010130) in materials, showing Value-Up principles translate across traditional Korean industrial sectors. E-MART (139480) and CJ Corp. (001040) round out strong retail/consumer representation.
Finance & Insurance emerges as the clear Value-Up leader, with seven companies in our top 20 and an average score significantly above the market. This sector's outperformance reflects several factors: regulatory encouragement from financial authorities, sophisticated institutional investor pressure, and business models naturally suited to capital return programs. Korean financial institutions also face ongoing pressure to improve ROE metrics, making Value-Up participation strategically aligned with core business objectives.
Wholesale & Retail shows surprising strength with three top-20 representatives (SHINSEGAE, Misto Holdings, E-MART), suggesting consumer-facing companies recognize the competitive advantage of strong governance in attracting both domestic and international investment. These companies often have stable cash flows that support consistent dividend policies.
Chemicals appears twice in the top tier through the AMOREPACIFIC entities, though this represents a single group's coordinated approach rather than broad sector adoption. The chemicals sector's capital-intensive nature traditionally creates tension between growth investment and shareholder returns, making these companies' perfect scores noteworthy.
Electronics & Semiconductors presents a mixed picture. While Samsung Electronics achieved a perfect score, the sector also features prominently among laggards, including Korea Circuit, Lotte Energy Materials, and LG Display in the bottom 10. This polarization likely reflects the sector's diverse subsegments and varying capital intensity profiles.
Concerning gaps appear in traditional heavy industry. Steel & Metals shows both leaders (Korea Zinc) and laggards (SK oceanplant, Hyundai Steel), suggesting uneven adoption within capital-intensive sectors. The Pharmaceuticals sector's representation in the bottom tier (Hanall Biopharma) may reflect biotech companies' focus on R&D investment over capital returns.
Telecommunications shows promise with KT Corporation's strong showing, though broader sector representation remains limited in our top-tier analysis.
The bottom performers reveal specific challenges and opportunities within the Value-Up transformation. HANALL BIOPHARMA (009420) and KOREA CIRCUIT (007810) both scored just 10 points, representing the most significant improvement opportunities in our universe.
These laggards typically share common characteristics: limited Value-Up program disclosure, inconsistent dividend policies, absence of buyback activity, and traditional governance structures. However, rather than viewing these as permanent fixtures, global investors should recognize them as potential transformation candidates.
Pharmaceuticals companies like Hanall Biopharma face legitimate tension between R&D investment needs and capital return programs. The challenge lies in communication—helping investors understand how Value-Up principles can coexist with growth investment strategies.
Steel & Metals companies (SK oceanplant, Hyundai Steel) reflect broader heavy industry hesitation around Value-Up adoption, likely due to cyclical cash flow patterns and ongoing capital investment requirements. However, Korea Zinc's top-tier performance proves sector limitations aren't insurmountable.
The Insurance sector's mixed performance (strong banks vs. lagging life insurers like Tongyang Life, Hanwha Life) suggests regulatory or business model differences within financial services that merit further investigation.
For global investors, these bottom-tier companies represent potential value opportunities if management teams embrace Value-Up principles. Activist investors and governance-focused funds may find attractive entry points among companies with strong business fundamentals but weak shareholder-friendly practices.
Second quarter developments will test the sustainability of Q1 Value-Up momentum. Key indicators include dividend payment execution among companies that increased policies, progression of announced buyback programs, and most importantly, second-wave adoption among current laggards.
We expect sector-specific catalysts to emerge, particularly in technology and heavy industry where adoption remains uneven. Chaebol governance reforms and regulatory guidance updates could accelerate transformation among traditional holdouts, creating new investment opportunities for Korea-focused strategies.