To accelerate reforms aimed at increasing shareholder returns and overcoming the "Korea discount," South Korea is taking action.

• The Financial Services Commission met with domestic institutional investors, including the country's pension fund, on Thursday, and vice chairman Kim So-young announced that they will be accelerating the timeline for the previously announced reforms.

The financial regulator of South Korea may accelerate the corporate reforms proposed last month and introduce new measures, following market players' concerns that the steps might not be sufficient to address the "Korea discount."

The Financial Services Commission met with domestic institutional investors and the country's pension fund on Thursday, and vice chairman Kim So-young announced that the schedule for the previously announced reforms would be accelerated, according to a Reuters report.

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The FSC stated in a post-meeting statement that promoting transparent markets, increasing accessibility to the capital market, and encouraging shareholder returns are crucial for revitalizing South Korea's undervalued stock markets.

The "Corporate Value-up Program" was launched by Korea's FSC in late February to boost shareholder returns and stock prices through tax benefits, which was reiterated on Thursday.

The objective is to motivate corporations to establish and reveal valuation improvement strategies on a voluntary basis.

Analysts warned that the measures taken by South Korea, similar to those of Japan, did not meet market expectations and may not be effective in pushing its stock markets to new heights.

The lack of targeted steps and South Korea's dominant "chaebol" have been identified as reasons why the country needs to take more actions to increase stock valuations. "Chaebols" are large family-owned global conglomerates, typically controlled by the founder's family, with notable examples including Samsung Electronics, LG, SK, and Hyundai.

The FSC announced on Thursday that the KRX will complete the development of the Korea value-up index in close consultation with institutional investors by the third quarter of this year.