Scoring Methodology

How We Score the Value-Up Tracker

The Follow-Through Score is a 0–100 composite of five verifiable criteria.The methodology is published in full — we believe transparency is the mechanism by which independent research earns credibility.

The Five Components

1. Capital Return — 40 points The single most heavily weighted component. For most sectors: did the company actually 'cancel' its treasury shares (permanent, irreversible per-share value increase) or merely hold them (reissuable, value-neutral)?
This is the distinction that matters most in Korean governance. Korean companies have historically bought back shares without cancelling them — making buyback announcements a weaker shareholder-return signal than they appear.
Sector-aware adjustment: Financial companies (banks, insurers) return capital primarily via dividends rather than cancellation. For these companies, a committed payout floor that is actively being paid earns the full 40 points — structurally equivalent to cancellation for that sector.

2. Execution Rate — 25 points Actual capital deployed divided by the announced amount. A press release is an intention. A DART filing is the receipt. We use only the receipt.
Scored linearly to the execution rate. 0% execution = 0 points. 100% execution = 25 points.

3. Target Specificity — 15 points - Floor (committed minimum) = 15 points- Range = 7 points- Vague / qualitative = 0 points
A committed floor leaves no escape hatch. "We will pay at least 40% of earnings" is a meaningfully stronger commitment than "we aim to increase our payout ratio." We score them differently.

4. Dividend Follow-Through — 10 points Up to 6 points for actual payout ratio versus stated target. Up to 4 points for adoption of Korea's 2026 pre-record-date dividend reform — the change that makes Korean dividends modelable for foreign investors for the first time.

5. Board Independence — 10 points Net addition of independent directors with evidence of real oversight function. Cosmetic appointments do not qualify.

Score Bands

| Band | Range | Reading |

| Executing | 75–100 | Commitments delivered with DART-verified receipts |

| Partial | 50–74 | Some follow-through; execution lags or targets are soft |

| Disclosure only | 0–49 | Plan exists on paper; little or no verified execution |

Data Standards

Every input to the Follow-Through Score traces to a specific DART filing or company IR document. We do not estimate. We do not interpolate. If data is unavailable, the affected component is marked N/A and excluded from the denominator — never guessed.
The tracker is updated every Friday after KRX close.

Nothing here is investment advice. Methodology subject to refinement — any material changes will be disclosed.