South Korea Names 120-220 Low PBR Companies Starting November, Targets 5-10% of Listed Firms

According to the Financial Services Commission and Korea Exchange announced on July 28, South Korea will publicly disclose a list of listed companies with persistently low price-to-book ratios (PBR) starting in November 2026. Companies ranked in the bottom 25% of their industry sector for three consecutive years on the Kospi index, or bottom 10% on the Kosdaq, will receive a "low PBR" label on trading platforms.

Simulation data from May showed approximately 120 to 220 companies could be affected, representing 5-10% of all listed firms domestically. Companies can avoid disclosure for one year by submitting value improvement plans, but those remaining below standards for six consecutive years will be listed regardless of mitigation efforts.