KOSPI 67, KOSDAQ 33 Included
Information Technology Leads with 24, Finance and Real Estate 10 Each
The Korea Exchange has finalized 100 constituent stocks for the 'Korea Value-Up Index,' introduced to encourage investment in companies with excellent corporate value. The index includes stocks from various industries such as information technology, industrials, healthcare, consumer staples, and communication services.
According to the Korea Exchange on the 24th, 67 stocks from KOSPI and 33 from KOSDAQ were included in the Value-Up Index. Among the top market capitalization stocks in KOSPI, included companies are Samsung Electronics, SK Hynix, Hyundai Motor, Kia, Celltrion, and Shinhan Financial Group.
By industry group, there are 24 in information technology, 20 in industrials, 12 in healthcare, 11 in consumer discretionary, 10 in financials and real estate, 9 in materials, 8 in consumer staples, 5 in communication services, and 1 in energy.
In information technology, besides Samsung Electronics and SK Hynix, included companies are POSCO DX, Hanmi Semiconductor, LG Innotek, HPSP, Lino Industrial, DB HiTek, Isu Petasys, and LX Semicon.
In industrials, HMM, POSCO International, Korean Air, Hanwha Aerospace, Hyundai Glovis, Doosan Bobcat, Korea Aerospace Industries, and Hanjin KAL were included.
In healthcare, selected companies include Celltrion, Hanmi Pharmaceutical, Classys, Caregen, Medytox, Dentium, and Chong Kun Dang.
In consumer discretionary, Hyundai Motor, Kia, F&F, Coway, and Fila Holdings were included; in financials and real estate, Shinhan Financial Group, Samsung Fire & Marine Insurance, Meritz Financial Group, Woori Financial Group, DB Insurance, Mirae Asset Securities, and Korea Financial Group were included.
In materials, companies such as Korea Zinc, Hansol Chemical, Soulbrain, Dongjin Semichem, and Hyosung Advanced Materials were included; in consumer staples, KT&G, Orion, BGF Retail, Dongseo, and Ottogi were included. In communication services, NCSoft, JYP Entertainment, and SM Entertainment were included, and in energy, S-Oil was included as the first constituent stock.
Among the 100 stocks, seven companies fulfilled the Value-Up disclosure requirements: DB HiTek, Hyundai Motor, Shinhan Financial Group, Meritz Financial Group, Woori Financial Group, Mirae Asset Securities, and Kiwoom Securities. Among these, Hyundai Motor, Shinhan Financial Group, Woori Financial Group, and Mirae Asset Securities were included in the index under the Value-Up early disclosure special exception.
Colma Holdings, FnGuide, Estrafic, DK&D, and DB Financial Investment made early Value-Up disclosures but did not meet the minimum requirements and were not included in the index.
An official from the Korea Exchange stated, "When applying the selection criteria, a relative evaluation method was adopted to ensure that no particular industry group is overly concentrated or excluded, allowing for balanced inclusion."
Lee Bu-yeon, Executive Director of the Management Support Headquarters at the Korea Exchange, explained, "Some industries have higher return on equity (ROE), while others have higher average price-to-book ratios (PBR). We considered the fairness issues that companies belonging to specific industries might raise." He added, "As the number of constituent companies increases in the future, we plan to reorganize the index focusing on companies actively participating in Value-Up. From next year, companies that do not make Value-Up disclosures may find it difficult to be included in the index."
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