Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>The Korea Exchange introduced the Corporate Value Up program on the KIND website. This is a voluntary system aimed at boosting the corporate value of listed Korean companies.</li>
<li>Five key investment indicators for the 2,400+ listed Korean companies include PBR, PER, ROE, dividend payout, and dividend yield. The detailed data these indicators can be easily downloaded on excel. </li>
<li>Corporate Value Up program is a marathon, not a sprint. In this race, the runners (Korean companies) also need some water (such as improvements to dividend/corporate income tax policy).</li>
</ul>


The Korea Exchange introduced the Corporate Value Up program on the KIND website. This is a voluntary system aimed at boosting the corporate value of listed Korean companies.
Five key investment indicators for the 2,400+ listed Korean companies include PBR, PER, ROE, dividend payout, and dividend yield. The detailed data these indicators can be easily downloaded on excel. 
Corporate Value Up program is a marathon, not a sprint. In this race, the runners (Korean companies) also need some water (such as improvements to dividend/corporate income tax policy).


Korea Exchange Launches the Disclosure of Corporate Value Up Program on KIND System

Index Rebalance

<ul>
<li>KRX announced changes to KOSPI200 and KOSDAQ150 indices. These changes will be effective from 12 December 2025. </li>
<li>In KOSPI200, there are 8 new additions and 8 deletions. Among the new additions include LG CNS, Sanil Electric, Asia Holdings, and Paradise.</li>
<li>There could be a buying opportunity for LG CNS due to its inclusion in KOSPI200 combined with its attractive valuations and accelerating sales and operating profit growth in 2026. </li>
</ul>


KRX announced changes to KOSPI200 and KOSDAQ150 indices. These changes will be effective from 12 December 2025. 
In KOSPI200, there are 8 new additions and 8 deletions. Among the new additions include LG CNS, Sanil Electric, Asia Holdings, and Paradise.
There could be a buying opportunity for LG CNS due to its inclusion in KOSPI200 combined with its attractive valuations and accelerating sales and operating profit growth in 2026. 


Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

<ul>
<li>There will be 7 additions and 8 deletions for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> at the next rebalance to be implemented at the close on 11 December.</li>
<li>As expected, there are no adhoc inclusions as Samsung Epis Holdings is added to the index to offset the gap created by the <a href="https://www.smartkarma.com/entities/hd-hyundai-heavy-industries-co" target="_blank" data-smartkarma-citation="entities:33808:1" rel="noopener">Hyundai Heavy</a>/ <a href="https://www.smartkarma.com/entities/hd-hyundai-mipo" target="_blank" data-smartkarma-citation="entities:2755:1" rel="noopener">Hyundai Mipo</a> merger.</li>
<li>The adds have outperformed the deletes very handily while also outperforming the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> but by a much narrower margin.</li>
</ul>


There will be 7 additions and 8 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the next rebalance to be implemented at the close on 11 December.
As expected, there are no adhoc inclusions as Samsung Epis Holdings is added to the index to offset the gap created by the Hyundai Heavy/ Hyundai Mipo merger.
The adds have outperformed the deletes very handily while also outperforming the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) but by a much narrower margin.


Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>IT trio got in as 1st/2nd screens didn’t fill 200; KRX used 3rd‑stage, pulling in the three names with biggest average daily mkt cap.</li>
<li>Old buffer rule recycled constituents, but since two years ago Step 3 applies to the whole universe—first shortfall let big IT names like Hyundai Autoever slide in.</li>
<li>Dec 12 rebalance: ~₩60tn passive flow expected; IT trio volumes high, but joining KOSPI 200 IT index could still trigger noticeable price impact near effective date.</li>
</ul>


IT trio got in as 1st/2nd screens didn’t fill 200; KRX used 3rd‑stage, pulling in the three names with biggest average daily mkt cap.
Old buffer rule recycled constituents, but since two years ago Step 3 applies to the whole universe—first shortfall let big IT names like Hyundai Autoever slide in.
Dec 12 rebalance: ~₩60tn passive flow expected; IT trio volumes high, but joining KOSPI 200 IT index could still trigger noticeable price impact near effective date.


KRX Just Dropped the KOSPI 200 Dec Rebalance: Bigger IT Sector Surprise

<ul>
<li>With the review period complete, there could be 7 changes for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> in December.</li>
<li>There may not be any intra-review changes following the <a href="https://www.smartkarma.com/entities/hd-hyundai-heavy-industries-co" target="_blank" data-smartkarma-citation="entities:33808:1" rel="noopener">Hyundai Heavy Industries</a>/ <a href="https://www.smartkarma.com/entities/hd-hyundai-mipo" target="_blank" data-smartkarma-citation="entities:2755:1" rel="noopener">Hyundai Mipo</a> merger due to timing and also due to <a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics</a>' spinoff being added to the index.</li>
<li>The forecast adds have outperformed the forecast deletes and the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">KOSPI2 INDEX</a> over the last few months and in the short-term too.</li>
</ul>


With the review period complete, there could be 7 changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December.
There may not be any intra-review changes following the Hyundai Heavy Industries/ Hyundai Mipo merger due to timing and also due to Samsung Biologics' spinoff being added to the index.
The forecast adds have outperformed the forecast deletes and the KOSPI2 INDEX over the last few months and in the short-term too.


KOSPI200 Index Rebalance Preview: 7 Changes a Side for December

South Korea

HDC Holdings Co.,Ltd operates as a real estate owner and developer. The Company develops residential areas, office buildings, hotels, restaurants, and other related areas. HDC Holdings offers services throughout South Korea.

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HDC Holdings (012630 KS)

Korea Exchange Launches the Disclosure of Corporate Value Up Program on KIND System

The Korea Exchange introduced the Corporate Value Up program on the KIND website. This is a voluntary system aimed at boosting the corporate value...

Douglas Kim

KRX Announces Changes to KOSPI200 Index

KRX announced changes to KOSPI200 and KOSDAQ150 indices effective 12 December 2025. LG CNS could present a buying opportunity with its inclusion,...

Douglas Kim

KOSPI200 Index Rebalance: Nearly Perfect

As expected, there are 7 changes a side (ignoring the merger, which was known). No ad hoc inclusions since the Hyundai merger offsets the Samsung...

Brian Freitas

KRX Just Dropped the KOSPI 200 Dec Rebalance: Bigger IT Sector Surprise

KRX’s Dec KOSPI 200 rebalance dropped today with a big surprise — unexpected IT names sliding in, reshaping flows and setting up notable price...

Sanghyun Park

KOSPI200 Index Rebalance Preview: 7 Changes a Side for December

If the merger offsets the spinoff, there could be 7 index changes in Dec. Passive impact on the stock varies between 0.7-21x ADV. Adds have...

Brian Freitas

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Korea Exchange Launches the Disclosure of Corporate Value Up Program on KIND System

The Korea Exchange introduced the Corporate Value Up program on the KIND website. This is a voluntary system aimed at boosting the corporate value...

Douglas Kim

KRX Announces Changes to KOSPI200 Index

​KRX announced changes to KOSPI200 and KOSDAQ150 indices effective 12 December 2025. LG CNS could present a buying opportunity with its inclusion,...

Douglas Kim

KOSPI200 Index Rebalance: Nearly Perfect

As expected, there are 7 changes a side (ignoring the merger, which was known). No ad hoc inclusions since the Hyundai merger offsets the Samsung...

Brian Freitas

KRX Just Dropped the KOSPI 200 Dec Rebalance: Bigger IT Sector Surprise

KRX’s Dec KOSPI 200 rebalance dropped today with a big surprise — unexpected IT names sliding in, reshaping flows and setting up notable price...

Sanghyun Park

KOSPI200 Index Rebalance Preview: 7 Changes a Side for December

If the merger offsets the spinoff, there could be 7 index changes in Dec. Passive impact on the stock varies between 0.7-21x ADV. Adds have...

Brian Freitas

KRX announced changes to KOSPI200 and KOSDAQ150 indices effective 12 December 2025. LG CNS could present a buying opportunity with its inclusion,...