According to the Korea Exchange, a total of 151 companies were publicly listed as 'low PBR' on November 1, including 96 from the KOSPI and 55 from the KOSDAQ. This announcement follows a joint initiative by relevant agencies to improve the capital market, which was announced in March.
Low PBR companies are those that have remained in the bottom tier of PBR rankings for six consecutive half-year periods or for six out of the last seven half-year periods. The KOSPI uses the bottom 25% by sector, while the KOSDAQ uses the bottom 10% as its criteria.
The exchange calculated PBR for 2,431 companies, excluding those that had reasons for delisting as of September 22. Among these, 185 met the low PBR criteria, but 34 companies that disclosed plans to improve their corporate value were excluded from the final list.
Included in the announcement are major companies with market capitalizations exceeding 1 trillion won, such as Lotte Shopping (0.17), E-Mart (0.15), Lotte Chemical (0.18), Hyundai Steel (0.19), and Hanwha Life (0.27). In the KOSDAQ, KCC Construction (0.20) and Spigen Korea (0.31) were also listed.
The exchange will publish the list of the 151 selected low PBR companies on the Value-Up page of the listing disclosure system (KIND) and will introduce a 'low PBR' label in mobile and home trading systems (MTS/HTS) of securities firms.
[STO Era Begins] Digital Financial Revolution Expected to Reach 315 Trillion Won by 2030
According to the financial investment industry, the implementation of the electronic securities law and capital markets law for the token securities (STO) system will officially begin in February next year. Starting next year, phase one will see institutional investor-only private money market funds (MMFs), private bonds, trust beneficiary securities for unlisted stocks, and public fractional investment securities traded in STO form.
The core of STO is the issuance, trading, and settlement of 'on-chain real-world assets (RWA)' by converting real-world assets or rights into blockchain-based 'tokens.' This can lead to various benefits, including shortened payment cycles, increased opportunities for small-scale investments, and simplified corporate financing. Experts believe that the full-scale implementation of STO will dramatically change the financial paradigm. In the U.S., token securities investing in government bonds and MMFs have already emerged.
The potential for expansion is immense. Boston Consulting Group (BCG) projects that the global market capitalization of tokenized assets will grow from $2.3 trillion next year to $14 trillion by 2030. Tiger Research recently estimated that the domestic tokenized asset market in Korea could reach 315 trillion won by 2030. Including stablecoins for payment and settlement (45 trillion won), the total market size is expected to grow to around 360 trillion won.
In Korea, the competition among financial companies to seize the opportunities presented by the STO era is heating up. Major financial firms such as KB Securities (Securitize, Canton), Mirae Asset Securities (Polygon), Meritz Securities (Ripple, Canton), and Hana Bank (Bitgo) are preparing to build related infrastructure in collaboration with overseas tech companies. A source in the financial investment industry stated, "With the implementation of related laws next year, the STO market centered on traditional financial assets with abundant liquidity will open up, leading to significant changes in the financial sector."
[Export Records and Challenges] Korean Exports Near $1 Trillion; Trade Surplus with U.S. Exceeds $100 Billion
On November 1, the Ministry of Trade, Industry and Energy announced that the preliminary export figure for October was $115.28 billion, a 93.7% increase compared to the same month last year, making it the second-highest monthly export figure ever, following September's $121.1 billion. This marks the second consecutive month that monthly exports have exceeded $110 billion.
The cumulative export figure for January to October reached $930 billion, a 60.6% increase compared to the same period last year, leaving only $70 billion to reach the annual export target of $1 trillion. The government assesses that if this trend continues, achieving $1 trillion in exports in November is highly likely.
The surge in exports was driven by semiconductors, with October semiconductor exports reaching $56.44 billion, a 259.4% increase from the same month last year, influenced by the growing demand for advanced semiconductors due to the rise of the artificial intelligence (AI) industry.
Imports in October also rose by 36.0% to $72.78 billion. As a result, the trade balance recorded a surplus of $42.5 billion, marking the 21st consecutive month of surplus. The cumulative trade surplus for the year has reached $294.9 billion.
The trade surplus with the United States has also reached a record high. Combining the confirmed figures from the Customs Service for January to September with the preliminary figures for October, the cumulative trade surplus with the U.S. for January to October is approximately $102.3 billion, surpassing $100 billion for the first time. October exports to the U.S. amounted to $24.9 billion, a 185.8% increase compared to the same month last year, setting a new monthly record. However, as the October figures are preliminary, the cumulative surplus may change in the future.
[FBI: North Korea Behind Binance Hack; Could Affect U.S.-North Korea Talks]
On October 31, the Federal Bureau of Investigation (FBI) stated on its website that North Korea is responsible for the theft of over $6 billion in virtual assets from Binance on September 29. The FBI explained that this incident is linked to the malicious cyber activities of North Korea's elite hacking group, TraderTraitor.
The FBI, in collaboration with the U.S. Secret Service (USSS) and the Internal Revenue Service Criminal Investigation (IRS-CI), detected movements indicating that North Korean hackers were converting the stolen assets primarily into Ethereum (ETH). They also warned of the possibility that the hackers might attempt to launder the funds by using decentralized finance (DeFi) platforms and instant exchange services to convert them into other virtual assets.
The FBI released a list of Ethereum (ETH), Bitcoin (BTC), and Solana (SOL) wallet addresses that the hackers may have used. They urged the virtual asset industry to block transactions related to these addresses or originating from them.
This incident highlights North Korea's ability to secure substantial illegal funds through cyberattacks, even amid widespread international sanctions due to its nuclear and missile development. The resurgence of concerns over North Korea's cybercrime and illicit financing could impact the Trump administration's North Korea policy as it seeks to resume dialogue.
However, President Trump, when asked about North Korea's involvement in the Binance hack during a press conference at his Mar-a-Lago residence in Florida, stated, "I don't know if it's North Korea, but if it is, I will talk to them about it," avoiding a definitive answer. He had also expressed uncertainty the day before, saying, "I don't know. We're looking into it."
[Lee to Deliver Budget Address Tomorrow Amid Political Tensions Over Overseas Trips]
On November 1, Chief Presidential Secretary Kang Yoo-jung announced the schedule for President Lee's budget address. President Lee is expected to explain the rationale behind the proposed budget for next year and request cooperation in the review and processing of the budget.
Given the ongoing political disputes that began during the National Assembly's audit, it may be challenging for President Lee's address to foster cooperation between the ruling and opposition parties.
The government's proposed budget for next year totals 820.9 trillion won, a 12.8% increase from this year's main budget. The government plans to allocate funds for stabilizing livelihoods, securing future growth engines, and promoting local-led growth.
The Democratic Party is focused on securing funding for key government initiatives, while the People Power Party is pushing for significant cuts targeting the establishment of a future response fund and cash support programs. The National Assembly's Special Committee on Budget and Accounts will conduct comprehensive policy inquiries on November 4-5.
Political disputes over overseas trips continue. The People Power Party raised concerns during the National Assembly audit regarding the frequency of President Lee's trips abroad and the participation of First Lady Kim Hye-kyung. In response, President Lee directly refuted these claims on X (formerly Twitter) on October 31.
* This article has been translated by AI.
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