◆Aju Economy Major News
▷62 companies submit plans to improve low PBR; effectiveness remains uncertain
- As the disclosure of companies with low price-to-book ratios (PBR) approaches, a total of 62 listed companies have submitted improvement plans by the deadline of October 22, including 34 from the KOSPI and 28 from the KOSDAQ.
- On the deadline day alone, 46 companies made their announcements, accounting for 74.2% of all submissions, while financial authorities plan to publicly disclose the list of low PBR companies on November 2.
- Companies that submit plans detailing the causes of their undervaluation, improvement goals, and execution strategies can be exempt from the public disclosure for one year, provided they meet the disclosure requirements. However, companies that have been in a low PBR state for six consecutive years are excluded from this exemption.
- Concerns have been raised that the burden of continuous evaluation of performance, dividends, and share buyback policies, along with the reputational risks associated with being on the list, may limit voluntary participation from companies.
- The financial investment sector has questioned the effectiveness of voluntary disclosures that lack legal enforcement and sanctions, while also expressing concerns that defining low PBR as a problem without considering individual company conditions, such as market conditions and business structure, is inappropriate.
◆Major Reports
▷Emerging Market Equity Funds See Largest Weekly Inflow in 52 Weeks [Yuanta Securities]
- During the week of October 15-21, global equity funds recorded a net inflow of $55.56 billion, continuing a significant influx for the second consecutive week. Notably, emerging market funds saw a net inflow of $33.5 billion, the highest in 52 weeks, surpassing developed markets.
- Investment funds shifted from a U.S. focus to Asian semiconductor stocks, with developed market funds experiencing the largest net inflow in technology stocks in 18 weeks, while defensive sectors like consumer goods and utilities faced the largest net outflow in 52 weeks.
- By theme, leveraged funds recorded their largest net inflow in 52 weeks, while large mixed funds maintained net inflows, contrasting with significant net outflows from small mixed funds.
- Among emerging markets, capital inflows expanded into Asian markets, including China and Taiwan, with South Korean equity funds also seeing a net inflow rate of 3.22%, the highest in 14 weeks, making it the only country among major Asian nations to experience simultaneous inflows from both offshore and domestic sources.
- This influx is attributed to bargain-hunting following a sharp decline in Asian markets due to U.S. inflation indicators and credit concerns related to AI companies. Future inflows will likely depend on the upcoming Federal Open Market Committee (FOMC) meeting and the performance and shareholder return policies of major semiconductor companies.
◆Major Disclosures After Market Close (October 23)
▷Asiana Airlines lawsuit verdict and decision (claims above a certain amount)
▷Daegu Department Store (revised) decision on asset transfer
▷BioInfra extension of short-selling restrictions (extension of short-selling ban)
▷Seohan extension of short-selling restrictions (extension of short-selling ban)
◆Fund Trends (as of October 22, excluding ETFs)
▷Domestic equity: -59.8 billion won
▷Overseas equity: -11.2 billion won
◆Key Schedule for Today (October 26)
▷Oracle AI World (until October 28)
▷IBM TechXchange 2026 (until October 29)
▷OpenAI DevDay Exchange
* This article has been translated by AI.
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