Analysis of Korea Value-Up ETFs in Light of Corporate Law Amendments
The recent passage of amendments to the Corporate Law in the National Assembly has brought attention to the Korea Value-Up index and the ETFs that track it. This year, the Korea Value-Up index has risen by 28.48%, with most Value-Up ETFs outperforming the KOSPI index. The financial sector is highlighted as a beneficiary of improved corporate governance, with large banking groups maintaining a stable capital ratio.
Notably, TIMEFOLIO Asset Management's 'TIMEFOLIO Korea Value-Up Active' has posted a 17.06% return in the last month, distinguishing itself in the market. The amendments to the Corporate Law have positively impacted the capital market, driving growth in the Value-Up ETF sector. As of the end of June, the net assets of 12 domestically listed Value-Up ETFs have increased to 705.1 billion KRW, reflecting expectations for continued momentum following the legal changes.
However, caution is advised regarding the potential for profit-taking in the short term. Investors should be mindful of how such activities could impact index and ETF performance. Therefore, it is crucial to weigh long-term growth potentials against short-term risks when making investment decisions.
Related News
매일일보2025 7月 06
'Value-Up ETF' Revives with Commercial Law Amendment - Daily NewspaperDaily Newspaper = Reporter Seong Dong-gyu | With the passing of the commercial law amendment, which is considered a signal for improving the structure of the capital market, the 'Value-Up Exchange Traded Fund (ETF)' market is heating up. According to the Korea Exchange on the 6th, the Korea Value-Up Index rose by 13.80% over the past month from the 2nd of last month to the 4th of this month, surpassing both the KOSPI (13.16%) and KOSDAQ (4.80%) returns. This index is composed of stocks selected based on criteria such as stock buybacks, dividend expansion, and capital efficiency. Among the stocks in the index, Poongsan surged by 82.78% in the past month, and KEPCO Engineering & Construction (44.59%), Hyosung
Value-Up ETF Dancing on Revised Commercial Act Passing National Assembly - ETodayOutperforming KOSPI by up to 4%p, expecting benefits from improved corporate governance since the beginning of the year following last year's poor performance ▲ At the National Assembly plenary session in Yeouido, Seoul on the 3rd, partial amendment to the Commercial Act