First List of 151 Low-PBR Companies: What It Means and How to Check

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The Korea Exchange (KRX) announced the first selection of 151 low-PBR companies on November 1, 2026. The list was published on KIND, the KRX corporate disclosure platform, starting November 2. It includes 96 companies from the KOSPI market and 55 from the KOSDAQ market.

Appearing on this list does not automatically restrict trading in a company’s shares or result in designation as a managed or investment-warning stock. The disclosure system is intended to encourage corporate value improvement by identifying companies that have received relatively low market valuations over an extended period.

However, a low PBR alone is not a sufficient reason to buy a stock. Its significance can vary depending on industry characteristics, profitability, and financial structure.

Investors can check whether a stock they hold is included through the Corporate Value-up Information section on KIND. This article explains the calculation reference date, selection criteria, and important distinctions when interpreting the list.

📋 1. What Was Disclosed in the First List of 151 Low-PBR Companies?

The low-PBR company disclosure system identifies and publicly lists companies whose price-to-book ratios (PBRs) have remained relatively low within their industries over a specified period.

PBR indicates how a company’s market value compares with its book value of net assets. It is generally calculated by dividing market capitalization by net assets.

For example, a PBR of 0.5 times means that the company’s market value is approximately half its book value of net assets. This is a hypothetical example intended to explain the indicator. It does not mean that all 151 companies on the disclosed list have an actual PBR of 0.5 times.

The key details of the first disclosure are summarized below.

It is important to distinguish the KRX announcement date from the date the list became available on KIND. The selection results were announced on November 1, while the first disclosure data became available for investors to search on KIND starting November 2.

The PBR figures on the list were not calculated using share prices from November 2 alone. They were calculated with October 22 as the reference date.

According to KIND, the PBR calculation uses the average daily market capitalization over the most recent 20 trading days, including the reference date. Net assets are based on the statement of financial position in the most recent applicable annual or semiannual report.

For companies preparing consolidated financial statements, the calculation uses total consolidated equity excluding non-controlling interests. Consequently, the PBR figures used for the list are not calculated solely from share-price movements on a single day.

This calculation method can be understood as a way to distinguish a temporary share-price decline on a particular trading day from a prolonged period of relatively low valuation within an industry.

📏 2. Selection Criteria — A PBR Below 1.0 Is Not Enough

The low-PBR company list is not simply a collection of every company whose PBR is below 1.0 times.

The Korea Exchange separates the KOSPI and KOSDAQ markets and calculates PBR rankings within each of the 11 industries defined under the Global Industry Classification Standard (GICS).

Because the system applies relative bottom-tier thresholds by market and industry, companies with the same PBR may have different selection outcomes depending on their market and industry classifications.

The period requirement is also important. According to the detailed criteria explained by the Financial Services Commission (FSC) in July 2026, companies are generally selected if they have remained within the bottom-tier threshold for their market and industry over the most recent 3 years, or 6 consecutive half-year periods.

However, if a company fell outside the threshold only once during that period, a supplementary rule applies to prevent a temporary share-price increase from removing it from consideration.

If the threshold was missed only once in the most recent 6 half-year periods, the PBR ranking for the preceding 7th half-year period is also examined. If the company met the bottom-tier threshold in 6 of those 7 periods, it may be included in the disclosure.

By contrast, a company that missed the threshold twice or more during the most recent 6 half-year periods does not qualify for this supplementary rule.

A separate exception applied to the first disclosure in November 2026. Companies whose PBR was outside the relevant industry’s bottom-tier threshold on October 22, the calculation reference date, were excluded from the first disclosure even if they had previously met the historical criteria.

Therefore, a company is not necessarily included in the first list simply because its PBR remained low for an extended period in the past. Market classification, industry ranking, historical half-year results, and the first-disclosure exception must be considered together.

📝 3. Can a Corporate Value-up Plan Exempt a Company from Disclosure?

The system provides an exemption from low-PBR company disclosure for companies that meet certain requirements.

If a company discloses a corporate value-up plan by the prescribed deadline, including an analysis of the causes of its low PBR, improvement targets, implementation measures, and performance evaluations, it may receive an exemption from disclosure for 1 year, equivalent to 2 half-year periods.

This goes beyond simply expressing an intention to improve. It involves examining the reasons for a low market valuation and setting out specific targets and implementation measures.

An exemption does not certify that the company’s value has already improved or guarantee future share-price gains. It is a disclosure exemption granted to companies that satisfy the prescribed filing requirements.

There is an important exception.

Companies that have remained within the bottom-tier PBR threshold for their market and industry for a cumulative 6 years cannot receive the exemption, even if they disclose a corporate value-up plan.

In other words, not every company can be excluded from the disclosure list merely by publishing an improvement plan. A separate exemption restriction applies to companies that have experienced low valuations over a particularly long period.

The purpose of the system is to encourage companies to make voluntary improvements. The existence of an improvement plan should be distinguished from actual business performance.

🔍 4. Where Can You Check Whether a Stock Is Included?

The official verification channel is KIND, the corporate disclosure platform operated by the Korea Exchange.

KIND provides a dedicated low-PBR company search page, where users can search by market, company name, and disclosure date.

1. Access KIND: Open the Korea Exchange’s KIND website, navigate to Corporate Value-up Information, and select Low-PBR Companies.
2. Set the search criteria: Select the first disclosure dated November 2, 2026, and choose All, KOSPI, or KOSDAQ under market classification.
3. Search by company name: Enter the name of the company you want to check.
4. Review the results: Check the listed company’s PBR, industry, PBR reference date, and other information for the selected disclosure.

The KIND page provides both a full-list view and search functionality. Changing the market classification allows users to check KOSPI and KOSDAQ companies separately.

The first disclosure covers 151 companies in total, comprising 96 companies in the KOSPI market and 55 in the KOSDAQ market.

Some brokerage home trading systems (HTS) and mobile trading systems (MTS) may also display a ‘Low-PBR’ tag beside stock names. However, the implementation date and display format may vary by brokerage.

The absence of such a tag on a trading screen does not necessarily mean that the company is excluded from the disclosure list. If a brokerage’s display differs from the KIND results, the KIND list for the relevant disclosure date is the more reliable reference.

It is also important not to confuse the PBR calculation reference date with the current trading date. The PBR shown in the disclosure may differ from one calculated using real-time share prices because the reference dates and calculation methods can differ.

⚖️ 5. What Inclusion Means — Not an Investment-Caution Designation

Being publicly identified as a low-PBR company means that the company met the bottom-tier PBR criteria for its market and industry over the prescribed period.

Inclusion alone does not suspend trading in the company’s shares or result in designation as a managed stock or an investment-caution, investment-warning, or investment-risk stock.

This distinction is also reflected in the organization of the KIND website.

Low-PBR Companies appears under Corporate Value-up Information, while managed stocks, stocks subject to trading suspension, and investment-caution, warning, and risk stocks are listed separately under Investment Caution Information.

The two types of information serve different purposes. The low-PBR disclosure system is primarily a means of providing information intended to encourage improvements in the value of companies that have received relatively low market valuations over an extended period.

Its relationship with delisting must also be distinguished.

According to the explanation released by the Financial Services Commission in July 2026, a low PBR in itself is not being added as a ground for initiating a substantive delisting review.

However, the FSC also described a proposal under which financial indicators such as PBR could be considered alongside corporate continuity, management transparency, investor protection, and other factors if a substantive review had already been initiated for another reason.

This is different from saying that inclusion on the low-PBR list automatically triggers a substantive delisting review.

Conversely, being classified as a low-PBR company does not eliminate the possibility of a managed-stock designation, trading suspension, or other measures arising from separate circumstances. The grounds for each designation and the relevant disclosures must be assessed independently.

⚠️ 6. A Low PBR Is Not a Reason to Buy

The low-PBR company list should not be interpreted as a list of recommended investments.

A low PBR indicates that a company’s market value is relatively low compared with its book value of net assets. However, this does not necessarily mean that the market is undervaluing the company excessively.

A low PBR may also reflect the business structure of the industry, profitability, or the company’s financial condition.

In particular, financial institutions and capital-intensive industries with substantial facilities and assets may have relatively low PBRs because of their business models and asset characteristics.

Simply comparing PBR figures across different industries can therefore lead to a distorted assessment of company value.

When interpreting PBR, the following factors can generally be considered together.

• Profitability: How effectively the company uses its capital to generate earnings.
• Debt and financial structure: The composition of net assets and the extent of financial obligations.
• Cash flow: Whether there is a difference between accounting earnings and the ability to generate actual cash.
• Shareholder returns: How dividend and treasury-share policies relate to the company’s use of capital.
• Corporate value-up plan: Whether the analysis of low valuation, improvement targets, and implementation measures is specific and concrete.

These factors provide an analytical perspective for understanding the limitations of PBR, rather than an investment recommendation concerning any particular company.

Even companies within the same industry may differ in business stability, asset quality, and earnings-generating capacity. A low PBR and a conclusion that a stock has a high fair value are separate matters.

The disclosure system is not intended to turn a low PBR into a buy signal. Its purpose is to provide investors with information about companies that have received low valuations within their industries over an extended period and to encourage those companies to improve.

✅ 7. Summary — How to Use the List and When the Next Disclosure Is Due

The first low-PBR company disclosure in November 2026 covered 151 companies: 96 in the KOSPI market and 55 in the KOSDAQ market. The Korea Exchange announced the selection results on November 1, and the list became available on KIND starting November 2.

The selection criteria go beyond whether PBR is simply below 1.0 times. They consider market and GICS industry rankings, the most recent 3 years of history covering 6 half-year periods, supplementary conditions, and the exception applied to the first disclosure.

There is also a 1-year disclosure exemption for qualifying companies that publish a corporate value-up plan. However, the exemption does not apply to companies that have remained in the bottom tier for a cumulative 6 years.

The list should be distinguished from trading restrictions and investment-caution designations. A low PBR alone is also insufficient to determine whether a company is an attractive investment.

Under the system’s regular schedule, the next disclosure is due on the first trading day of May 2027. This follows the semiannual disclosure cycle explained by the Financial Services Commission and does not establish a specific calendar date.

The most practical use of the low-PBR company list is to examine how companies have been valued by the market over time and how that valuation relates to their corporate value-up plans. Whether a stock is included can be verified through KIND by selecting the relevant disclosure date and market classification.

🔗 Further Reading

• Korea Exchange KIND — Low-PBR Company Search
• Financial Services Commission — Detailed Criteria for Low-PBR Company Disclosure