The Korea Exchange will publish its first list of listed companies with low P/B ratios on November 2 under a system intended to encourage corporate value-enhancement disclosures and shareholder returns. P/B compares market capitalization with equity, or net assets; a ratio below 1 means investors value a company below its book value. Companies will be assessed within 11 Global Industry Classification Standard sectors using semi-annual data from the past three years. The system will cover the bottom 25% of KOSPI companies and bottom 10% of KOSDAQ companies, with an exchange simulation estimating 120 to 220 potential targets. Analysts expect the framework to encourage buybacks, share cancellations and higher dividends, while reducing equity-increasing measures such as rights offerings and convertible bond issuance. Companies that submit corporate value-enhancement plans by October 22 will receive a one-year exemption. Inclusion is not a buy signal, however, because a low P/B ratio can reflect weak profitability or growth prospects, creating a value trap. Investors will need to distinguish completed cancellations from buybacks that leave repurchased shares available for resale and assess whether dividends are recurring or one-off payments.