The Korea Value Up Index saw 27 stocks included and 32 stocks excluded in its first regular revision.
The Korea Exchange announced on the 27th that it decided to hold a stock index operation committee. The changes in the index composition will take effect starting June 13.
In December of last year, the number of stocks in the Korea Value Up Index was temporarily increased to 105 due to special inclusions, but it has been adjusted back to 100 stocks in this regular revision. The market capitalization ratio of the Korea Value Up Index stocks compared to the total market capitalization of the KOSPI and KOSDAQ markets is approximately 45.8%.
The newly included stocks are PSK Holdings, Solus Advanced Materials, Hyundai Rotem, LS ELECTRIC, Hanwha System, Hyosung Heavy Industries, KEPCO E&C, LOTTE Rental, Cheryong Electric, Kangwon Land, HANSSEM, DoubleU Games, Hanatour, Myoung Shin Industry, Samsung Securities, JB Financial Group, KRAFTON, Kumho Petrochemical, Poongsan, Miwon Commercial, Amorepacific Corporation, COSMAX, Binggrae, HD Hyundai, SK Gas, Hanmi Science, and WONTECH.
The Korea Exchange explained that it applied preferential treatment for the assessment of value-up disclosure corporations during this regular change, easing requirements such as market capitalization, price-to-book ratio (PBR), and return on equity (ROE).
There was also a large-scale exclusion. The Korea Exchange noted that it established objective screening criteria for 'actions that harm shareholder value,' which are against the intent of the value-up policy, and excluded some stocks that fell under this category.
ISU PETASYS, LX Semicon, HANA Materials, SIMMTECH, WONIK QnC, DOOSAN TESNA, BH, HAESUNG DS, Pan Ocean, SFA Engineering Corporation, Yunsung F&C, Medytox, SL Corporation, Hansei Industry, CUCKOO Homesys, GOLFZON, Hyundai Marine & Fire Insurance, Daou Data, NCSOFT, SME, Korea Zinc, HS HYOSUNG, Advanced Nano Products, OTOKI, and Kolmar BNH were excluded from the Korea Value Up Index.
As a result of this regular revision, the ratio of value-up disclosed stocks within the Korea Value Up Index increased from 25% to 61%. The Korea Exchange plans to focus on value-up disclosure corporations for index composition starting from the regular review in 2026.
The performance of the Korea Value Up Index was superior to that of KOSPI 200 Index, the representative benchmark stock index in the country. Since its inception on Sept. 30 last year, the Korea Value Up Index has risen by 6.92%, while the KOSPI 200 Index has increased by 2.13% during the same period.