Japan/Asia Long-Short, LightStream Research

Mio Kato

Japan/Asia Long-Short

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<p>We said a couple of weeks ago that the restrictions on the gaming sector imposed by China were far more severe than the market reaction indicated. However, our view was mostly a call on the long-term impact of the gaming time restrictions on minors. The latest updates suggest that even the short-term outlook could get dire fast.</p>

We said a couple of weeks ago that the restrictions on the gaming sector imposed by China were far more severe than the market reaction indicated. However, our view was mostly a call on the long-term impact of the gaming time restrictions on minors. The latest updates suggest that even the short-term outlook could get dire fast.

China Gaming Restrictions Redux – Market Seems to Be in Denial

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.

Event-Driven

<p>Below are KOSPI stocks that will see lockup releases in September. Four of these stocks have recently gone public.</p><table class="table table-striped">
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<td data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Share type"}'>Share type</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Release date"}'>Release date</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Release volume"}'>Release volume</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% of SO"}'>% of SO</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ottogi Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Ottogi Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"007310"}' data-sheets-formula='="007310"'>007310</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ordinary"}'>Ordinary</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44464}' data-sheets-numberformat='[null,5,"yyyy. mm. dd",1]'>2021. 09. 25</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":66744}' data-sheets-numberformat='[null,2,"#,##0",1]'>66,744</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.018176564639087185}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-4], "shares")'>1.82%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ajusteel Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Ajusteel</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"139990"}' data-sheets-formula='="139990"'><strong>139990</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ordinary"}'><strong>Ordinary</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44459}' data-sheets-numberformat='[null,5,"yyyy. mm. dd",1]'><strong>2021. 09. 20</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2507518}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=sum('139990'!R[12]C[0]:R[18]C[0])+'139990'!R[24]C[0]"><strong>2,507,518</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.09479434764359199}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-4], "shares")'><strong>9.48%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Y2 Solution Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Y2 Solution</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"011690"}' data-sheets-formula='="011690"'>011690</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ordinary"}'>Ordinary</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44458}' data-sheets-numberformat='[null,5,"yyyy. mm. dd",1]'>2021. 09. 19</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":59000000}' data-sheets-numberformat='[null,2,"#,##0",1]'>59,000,000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.40071820384082696}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-4], "shares")'>40.07%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Bioscience Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>SK Bioscience</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"302440"}' data-sheets-formula='="302440"'><strong>302440</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ordinary"}'><strong>Ordinary</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44457}' data-sheets-numberformat='[null,5,"yyyy. mm. dd",1]'><strong>2021. 09. 18</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":56298100}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="='302440'!R[4]C[0]+'302440'!R[8]C[0]"><strong>56,298,100</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7359228758169934}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-4], "shares")'><strong>73.59%</strong></td>
</tr>
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<td data-sheets-value='{"1":2,"2":"Krafton Inc"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Krafton</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"259960"}' data-sheets-formula='="259960"'><strong>259960</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ordinary"}'><strong>Ordinary</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44449}' data-sheets-numberformat='[null,5,"yyyy. mm. dd",1]'><strong>2021. 09. 10</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2137478}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=sum('259960'!R[18]C[0]:R[19]C[0])+'259960'!R[25]C[0]"><strong>2,137,478</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0436652687167866}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-4], "shares")'><strong>4.37%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Krafton Inc"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'><strong>Krafton</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"259960"}' data-sheets-formula='="259960"'><strong>259960</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ordinary"}'><strong>Ordinary</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44448}' data-sheets-numberformat='[null,5,"yyyy. mm. dd",1]'><strong>2021. 09. 09</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":90000}' data-sheets-numberformat='[null,2,"#,##0",1]'><strong>90,000</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0018385565533356573}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-4], "shares")'><strong>0.18%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Bank"}'><strong>Kakao Bank</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"323410"}' data-sheets-formula='="323410"'><strong>323410</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ordinary"}'><strong>Ordinary</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44445}' data-sheets-numberformat='[null,5,"yyyy. mm. dd",1]'><strong>2021. 09. 06</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3141600}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="='323410'!R[13]C[0]"><strong>3,141,600</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.006612499332430348}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-4], "shares")'><strong>0.66%</strong></td>
</tr>
<tr><td colspan="6" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX KIND"}'>Source: KRX KIND</td></tr>
</tbody>
</table><hr><div class="content-highlight"><p><strong>In the DETAIL section below, let's take a look at the flow of the 4 recently listed stocks this month one by one.</strong></p></div>

Below are KOSPI stocks that will see lockup releases in September. Four of these stocks have recently gone public.










Name
Ticker
Share type
Release date
Release volume
% of SO


Ottogi Corp
007310
Ordinary
2021. 09. 25
66,744
1.82%


Ajusteel
139990
Ordinary
2021. 09. 20
2,507,518
9.48%


Y2 Solution
011690
Ordinary
2021. 09. 19
59,000,000
40.07%


SK Bioscience
302440
Ordinary
2021. 09. 18
56,298,100
73.59%


Krafton
259960
Ordinary
2021. 09. 10
2,137,478
4.37%


Krafton
259960
Ordinary
2021. 09. 09
90,000
0.18%


Kakao Bank
323410
Ordinary
2021. 09. 06
3,141,600
0.66%

Source: KRX KIND

In the DETAIL section below, let's take a look at the flow of the 4 recently listed stocks this month one by one.

September Lockup Releases on KOSPI: Looking at Each Stock's Flow Situation

<p>As shown below, KRX BBIG consists of one mother index and four sub-indices. That is, a total of five individual indices each have their own ETF.</p><table class="table table-striped">
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<td style="width: 248.991px;" data-sheets-value='{"1":2,"2":"Index calculations"}'>Index calculations</td>
<td style="width: 191.989px;" data-sheets-value='{"1":2,"2":"BBIG"}'>BBIG (the mother index)</td>
<td style="width: 305.028px;" data-sheets-value='{"1":2,"2":"Four sub-indices"}'>
<div>Four sub-indices</div>
<div>: Secondary Battery, Bio, Internet, &amp; Game</div>
</td>
</tr>
<tr>
<td style="width: 248.991px;" data-sheets-value='{"1":2,"2":"Number of constituents"}'>Number of constituents</td>
<td style="width: 191.989px;" data-sheets-value='{"1":3,"3":12}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>12</td>
<td style="width: 305.028px;" data-sheets-value='{"1":3,"3":10}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>10</td>
</tr>
<tr>
<td colspan="1" rowspan="2" style="width: 248.991px;" data-sheets-value='{"1":2,"2":"Index weight"}'><div>Index weight</div></td>
<td colspan="1" rowspan="2" style="width: 191.989px;" data-sheets-value='{"1":2,"2":"Equal-weighted at 8.33%"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'><div>Equal-weighted at 8.33%</div></td>
<td colspan="1" rowspan="2" style="width: 305.028px;" data-sheets-value='{"1":2,"2":"Top 3 (by full market cap): Equal-weighted at 25%\nThe remaining 7: float-adjusted market cap-weighted totaling 25%"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'><div>Top 3 (by full market cap): Equal-weighted at 25%<br>The remaining 7: float-adjusted market-cap-weighted totaling 25%</div></td>
</tr>
<tr></tr>
<tr><td colspan="3" rowspan="1" style="width: 746.008px;" data-sheets-value='{"1":2,"2":"Source: KRX &amp; WISE Index"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>Source: KRX &amp; WISE Index</td></tr>
</tbody>
</table><p>It is important to note that these indices consist of only 10 to 12 stocks. <strong>In addition, futures of the KRX BBIG mother index and two sub-indices (Secondary Battery and Bio) have been listed and operated since July of this year.</strong></p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/227/980/original/Screen+Shot+2021-09-05+at+3.22.23+AM.png?1630829541" class="editor-image img-responsive" data-smartkarma-image-id="227980"></figure></section><div class="content-highlight">
<p><strong>Hence, these indices provide relatively suitable conditions for ETF arbitrage.</strong></p>
<ul>
<li><strong>In other words, we can aim for arbitrage using an ETF/NAV disparity. In particular, in Korea, we get tax-free benefits (no transaction tax) when selling ETFs.</strong></li>
<li><strong>For this reason, if a disparity rises above -0.25% (equivalent to transaction tax rate), we can consider a classic ETF arb setup.</strong></li>
<li><strong>We buy underlying securities and undergo ETF creation and redemption in the primary and then sell ETFs in the secondary market.</strong></li>
</ul>
</div>

As shown below, KRX BBIG consists of one mother index and four sub-indices. That is, a total of five individual indices each have their own ETF.







Index calculations
BBIG (the mother index)

Four sub-indices
: Secondary Battery, Bio, Internet, &amp; Game



Number of constituents
12
10


Index weight
Equal-weighted at 8.33%
Top 3 (by full market cap): Equal-weighted at 25% The remaining 7: float-adjusted market-cap-weighted totaling 25%


Source: KRX &amp; WISE Index

It is important to note that these indices consist of only 10 to 12 stocks. In addition, futures of the KRX BBIG mother index and two sub-indices (Secondary Battery and Bio) have been listed and operated since July of this year.
Hence, these indices provide relatively suitable conditions for ETF arbitrage.

In other words, we can aim for arbitrage using an ETF/NAV disparity. In particular, in Korea, we get tax-free benefits (no transaction tax) when selling ETFs.
For this reason, if a disparity rises above -0.25% (equivalent to transaction tax rate), we can consider a classic ETF arb setup.
We buy underlying securities and undergo ETF creation and redemption in the primary and then sell ETFs in the secondary market.



ETF Arbitrage Using KRX BBIG New Deal Is on the Rise

<h2>Rebalancing results</h2><p>Below is the official result of the regular rebalancing in September for the KRX BBIG K_New Deal Index.</p><div class="content-highlight"><p><strong>Of course, the big changes are Krafton and SK Bioscience in the main index. And SKIET's inclusion in the Secondary Battery sub-index also deserves special attention.</strong></p></div><table class="table table-striped">
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<tr><td colspan="5" data-sheets-value='{"1":2,"2":"Constituents Change of KRX BBIG K-New Deal Index"}'>Constituents Change of KRX BBIG K-New Deal Index</td></tr>
<tr>
<td rowspan="2" data-sheets-value='{"1":2,"2":"Index"}'><div>Index</div></td>
<td colspan="2" style="text-align: center;" data-sheets-value='{"1":2,"2":"Addition"}'>Addition</td>
<td colspan="2" style="text-align: center;" data-sheets-value='{"1":2,"2":"Deletion"}'>Deletion</td>
</tr>
<tr>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Name"}'>Name</td>
</tr>
<tr>
<td rowspan="2" data-sheets-value='{"1":2,"2":"KRX BBIG K_New Deal Index"}'><div><strong>KRX BBIG K_New Deal</strong></div></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"302440"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula='="302440"'><strong>302440</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"SK Bioscience Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'><strong>SK Bioscience</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"302440"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula='="302440"'><strong>302440</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"SK Bioscience Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'><div><div><strong>SK Biopharm</strong></div></div></td>
</tr>
<tr>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"259960"}' data-sheets-formula='="259960"'><strong>259960</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Krafton Inc"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'><strong>Krafton</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"293490"}' data-sheets-formula='="293490"'><strong>293490</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Kakao Games Corp"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'><div><div><strong>Kakao Games</strong></div></div></td>
</tr>
<tr>
<td><div></div></td>
<td colspan="4" style="text-align: left;"><div><div></div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KRX Secondary Battery K_New Deal Index"}'><strong>KRX Secondary Battery</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"361610"}' data-sheets-formula='="361610"'><strong>361610</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"SK IE Technology Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'><strong>SK IE Technology</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"278280"}' data-sheets-formula='="278280"'><strong>278280</strong></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Chunbo Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'><strong>Chunbo</strong></td>
</tr>
<tr>
<td rowspan="2" data-sheets-value='{"1":2,"2":"KRX Bio K_New Deal Index"}'><div>KRX Bio</div></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"302440"}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula='="302440"'>302440</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"SK Bioscience Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'>SK Bioscience</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"019170"}' data-sheets-formula='="019170"'>019170</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Shinpoong Pharmaceutical Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'><div><div>Shinpoong Pharm</div></div></td>
</tr>
<tr>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"128940"}' data-sheets-formula='="128940"'>128940</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"HanmiPharm"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'>HanmiPharm</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"096530"}' data-sheets-formula='="096530"'>096530</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Seegene Inc"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'>Seegene</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KRX Internet K_New Deal Index"}'>KRX Internet</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"035600"}' data-sheets-formula='="035600"'>035600</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"KGInicis Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'>KGInicis</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"131370"}' data-sheets-formula='="131370"'>131370</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Rsupport Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'><div><div>Rsupport</div></div></td>
</tr>
<tr>
<td rowspan="2" data-sheets-value='{"1":2,"2":"KRX Game K_New Deal Index"}'><div>KRX Game</div></td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"259960"}' data-sheets-formula='="259960"'>259960</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Krafton Inc"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'>Krafton</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"112040"}' data-sheets-formula='="112040"'>112040</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Wemade Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'>Wemade</td>
</tr>
<tr>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"194480"}' data-sheets-formula='="194480"'>194480</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Devsisters Corp"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'>Devsisters</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"217270"}' data-sheets-formula='="217270"'>217270</td>
<td style="text-align: left;" data-sheets-value='{"1":2,"2":"Neptune Co"}' data-sheets-formula='=googlefinance(R[0]C[-1], "name")'>Neptune</td>
</tr>
<tr><td colspan="5" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p><strong>The effective date is September 10, the same as the KOSPI 200 Fast Entry rebalancing. It means that Krafton will receive passive inflow from both KRX BBIG and KOSPI 200.</strong></p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" style="width: 746.008px;" data-sheets-value='{"1":2,"2":"Rebalancing schedule"}'>Rebalancing schedule</td></tr>
<tr>
<td style="width: 212.997px;" data-sheets-value='{"1":2,"2":"Rebalancing cycle"}'>Rebalancing cycle</td>
<td style="width: 533.011px;" data-sheets-value='{"1":2,"2":"Semi-annually"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>Semi-annually</td>
</tr>
<tr>
<td style="width: 212.997px;" data-sheets-value='{"1":2,"2":"Rebalancing month"}'>Rebalancing month</td>
<td style="width: 533.011px;" data-sheets-value='{"1":2,"2":"March and September"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div>March and September</div></td>
</tr>
<tr>
<td style="width: 212.997px;" data-sheets-value='{"1":2,"2":"Implementation date"}'>Implementation date</td>
<td style="width: 533.011px;" data-sheets-value='{"1":2,"2":"The trading day following the last trading day for KOSPI 200 futures contracts"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div>The trading day following the last trading day for KOSPI 200 futures contracts</div></td>
</tr>
<tr>
<td style="width: 212.997px;" data-sheets-value='{"1":2,"2":"Next implementation date"}'>Next implementation date</td>
<td style="width: 533.011px;" data-sheets-value='{"1":2,"2":"September 10, 2021"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div>September 10, 2021</div></td>
</tr>
<tr>
<td style="width: 212.997px;" data-sheets-value='{"1":2,"2":"Rebalancing trading"}'>Rebalancing trading</td>
<td style="width: 533.011px;" data-sheets-value='{"1":2,"2":"At the close on September 9, 2021"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div>At the close on September 9, 2021</div></td>
</tr>
<tr>
<td style="width: 212.997px;" data-sheets-value='{"1":2,"2":"Screening base date"}'>Screening base date</td>
<td style="width: 533.011px;" data-sheets-value='{"1":2,"2":"The last trading day of the month preceding the date of regular rebalancing"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div>The last trading day of the month preceding the date of regular rebalancing.</div></td>
</tr>
<tr>
<td style="width: 212.997px;" data-sheets-value='{"1":2,"2":"Screening period"}'>Screening period</td>
<td style="width: 533.011px;" data-sheets-value='{"1":2,"2":"The three months preceding the screening base date"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'><div>The three months preceding the screening base date</div></td>
</tr>
<tr><td colspan="2" rowspan="1" style="width: 746.008px;" data-sheets-value='{"1":2,"2":"Source: KRX &amp; WISE Index"}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}'>Source: KRX &amp; WISE Index</td></tr>
</tbody>
</table><p>Below are the AUMs of the ETFs tracking these indices. Only the main index and the secondary battery sub-index have a meaningful size of AUM. And both indices' AUMs have decreased from the peak in the first half of this year.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"ETFs tracking BBIG indices"}'>ETFs tracking BBIG indices</td>
<td data-sheets-value='{"1":2,"2":"Index"}'>Index</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"AUM"}'>AUM</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX BBIG K-New Deal ETF"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX BBIG K-New Deal ETF</td>
<td rowspan="4" data-sheets-value='{"1":2,"2":"KRX BBIG K-New Deal Index"}'><div><strong>KRX BBIG K-New Deal Index</strong></div></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":364960}'>364960</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":441.35}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩441.4B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":700003}'>700003</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":10.31}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩10.3B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"TIMEFOLIO TIMEFOLIO BBIG Active ETF"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>TIMEFOLIO TIMEFOLIO BBIG Active ETF</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":385710}'>385710</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":27.564}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000">₩27.6B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"- Total"}' data-sheets-numberformat='[null,2,"#,##0.00",1]'><strong>- Total</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"-"}'><strong>-</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":479.22400000000005}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])"><strong>₩479.2B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX Second Battery K-NewDeal ETF"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX Second Battery K-NewDeal ETF</td>
<td data-sheets-value='{"1":2,"2":"KRX Secondary Battery K-New Deal Index"}' data-sheets-numberformat='[null,2,"#,##0.0"]'><strong>KRX Secondary Battery K-New Deal Index</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":364980}'>364980</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":647.235}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩647.2B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX BIO K-New Deal ETF"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX BIO K-New Deal ETF</td>
<td data-sheets-value='{"1":2,"2":"KRX Bio K-New Deal Index"}' data-sheets-numberformat='[null,2,"#,##0.0"]'><strong>KRX Bio K-New Deal Index</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":364970}'>364970</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":100.53}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩100.5B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX Internet K-New Deal ETF"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX Internet K-New Deal ETF</td>
<td data-sheets-value='{"1":2,"2":"KRX Internet K-New Deal Index"}' data-sheets-numberformat='[null,2,"#,##0.0"]'><strong>KRX Internet K-New Deal Index</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":365000}'>365000</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":64.86725}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩64.9B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Mirae Asset TIGER KRX Game K-New Deal ETF"}' data-sheets-formula='=googlefinance(R[0]C[2], "name")'>Mirae Asset TIGER KRX Game K-New Deal ETF</td>
<td data-sheets-value='{"1":2,"2":"KRX Game K-New Deal Index"}' data-sheets-numberformat='[null,2,"#,##0.0"]'><strong>KRX Game K-New Deal Index</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":364990}'>364990</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":31.89275}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[0]C[1]*R[0]C[2]/1000000000"><strong>₩31.9B</strong></td>
</tr>
<tr><td colspan="4">Source: KRX</td></tr>
</tbody>
</table><hr><h2>Regarding Krafton's inclusion:</h2><p>Krafton was listed after the review cutoff date (July 31). Nonetheless, KRX decided to include it in this rebalancing. Then, did KRX break its own rule? Well, it did not.</p><p><strong>Here is my explanation which I posted previously, concerning this issue.</strong></p><div class="content-highlight">
<p>First of all, this BBIG index does not have a Fast Entry clause. So, KRX was internally debating whether to apply the review cutoff date to newly listed stocks with large market caps. (This was what I heard from KRX directly.) Since this index has few constituents, if newly listed stocks with large market caps are excluded from the index for nearly six months, the resulting disparity between the index and the actual sector may become too large, and KRX is also concerned about this.</p>
<p>Therefore, KRX said that it would decide on Fast Entry of those stocks with large market caps, such as Krafton, Kakao Pay, and LG Energy Solution, at the time of regular rebalancing in consultation with the ETF operators (Mirae Asset). In the end, it turned out that the outcome of the KRX &amp; Mirae Asset discussion on the Fast Entry of Krafton was Go, which wasn't outside the scope of the KRX Index methodology at all.</p>
</div>

Rebalancing resultsBelow is the official result of the regular rebalancing in September for the KRX BBIG K_New Deal Index.Of course, the big changes are Krafton and SK Bioscience in the main index. And SKIET's inclusion in the Secondary Battery sub-index also deserves special attention.








Constituents Change of KRX BBIG K-New Deal Index

Index
Addition
Deletion


Ticker
Name
Ticker
Name


KRX BBIG K_New Deal
302440
SK Bioscience
302440
SK Biopharm


259960
Krafton
293490
Kakao Games






KRX Secondary Battery
361610
SK IE Technology
278280
Chunbo


KRX Bio
302440
SK Bioscience
019170
Shinpoong Pharm


128940
HanmiPharm
096530
Seegene


KRX Internet
035600
KGInicis
131370
Rsupport


KRX Game
259960
Krafton
112040
Wemade


194480
Devsisters
217270
Neptune

Source: KRX

The effective date is September 10, the same as the KOSPI 200 Fast Entry rebalancing. It means that Krafton will receive passive inflow from both KRX BBIG and KOSPI 200.





Rebalancing schedule

Rebalancing cycle
Semi-annually


Rebalancing month
March and September


Implementation date
The trading day following the last trading day for KOSPI 200 futures contracts


Next implementation date
September 10, 2021


Rebalancing trading
At the close on September 9, 2021


Screening base date
The last trading day of the month preceding the date of regular rebalancing.


Screening period
The three months preceding the screening base date

Source: KRX &amp; WISE Index

Below are the AUMs of the ETFs tracking these indices. Only the main index and the secondary battery sub-index have a meaningful size of AUM. And both indices' AUMs have decreased from the peak in the first half of this year.








ETFs tracking BBIG indices
Index
Ticker
AUM


Mirae Asset TIGER KRX BBIG K-New Deal ETF
KRX BBIG K-New Deal Index
364960
₩441.4B


Hana Financial Investment Hana KRX BBIG K-New Deal ETN 3
700003
₩10.3B


TIMEFOLIO TIMEFOLIO BBIG Active ETF
385710
₩27.6B


- Total
-
₩479.2B


Mirae Asset TIGER KRX Second Battery K-NewDeal ETF
KRX Secondary Battery K-New Deal Index
364980
₩647.2B


Mirae Asset TIGER KRX BIO K-New Deal ETF
KRX Bio K-New Deal Index
364970
₩100.5B


Mirae Asset TIGER KRX Internet K-New Deal ETF
KRX Internet K-New Deal Index
365000
₩64.9B


Mirae Asset TIGER KRX Game K-New Deal ETF
KRX Game K-New Deal Index
364990
₩31.9B

Source: KRX

Regarding Krafton's inclusion:Krafton was listed after the review cutoff date (July 31). Nonetheless, KRX decided to include it in this rebalancing. Then, did KRX break its own rule? Well, it did not.Here is my explanation which I posted previously, concerning this issue.
First of all, this BBIG index does not have a Fast Entry clause. So, KRX was internally debating whether to apply the review cutoff date to newly listed stocks with large market caps. (This was what I heard from KRX directly.) Since this index has few constituents, if newly listed stocks with large market caps are excluded from the index for nearly six months, the resulting disparity between the index and the actual sector may become too large, and KRX is also concerned about this.
Therefore, KRX said that it would decide on Fast Entry of those stocks with large market caps, such as Krafton, Kakao Pay, and LG Energy Solution, at the time of regular rebalancing in consultation with the ETF operators (Mirae Asset). In the end, it turned out that the outcome of the KRX &amp; Mirae Asset discussion on the Fast Entry of Krafton was Go, which wasn't outside the scope of the KRX Index methodology at all.


KRX BBIG Rebalancing Results & Passive Impact Estimations: Watch Douzone Bizon

<p>KRX officially announced the KOSPI 200 Fast Entry results of Kakao Bank and Krafton. KRX also announced the changes of KOSPI sector indices accordingly.</p><div class="content-highlight"><p><strong>The effective date is September 10th, so the rebalancing trading should occur at the close on September 9th.</strong></p></div><hr><h2>1. Kakao Bank in and Lock&amp;Lock out</h2><p>Below are the changes following the inclusion of Kakao Bank's index. As expected, Lock&amp;Lock (115390) was removed from the KOSPI 200. Lock&amp;Lock was one of the two stocks with the lowest daily average market cap during the most recent rebalancing review period, from November 1 of last year to April 30. Another thing worth noting is that the stock excluded from the KOSPI 100 is Ottogi (007310).</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Bank"}'>Kakao Bank</td>
<td data-sheets-value='{"1":2,"2":"Add"}'>Add</td>
<td data-sheets-value='{"1":2,"2":"Delete"}'>Delete</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200"}'><strong>KOSPI 200</strong></td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'><strong>KakaoBank (323410)</strong></td>
<td data-sheets-value='{"1":2,"2":"L&amp;L (115390)"}'><strong>L&amp;L (115390)</strong></td>
</tr>
<tr><td colspan="3"><strong> </strong></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Financials"}'>KOSPI 200 Financials</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Consumer discretionary"}'>KOSPI 200 Consumer discretionary</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td data-sheets-value='{"1":2,"2":"L&amp;L (115390)"}'>L&amp;L (115390)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 MidSmallCap"}'>KOSPI 200 MidSmallCap</td>
<td data-sheets-value='{"1":2,"2":"OTTOGI (007310)"}'>OTTOGI (007310)</td>
<td data-sheets-value='{"1":2,"2":"L&amp;L (115390)"}'>L&amp;L (115390)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI ex-KOSPI 200"}'>KOSPI ex-KOSPI 200</td>
<td data-sheets-value='{"1":2,"2":"L&amp;L (115390)"}'>L&amp;L (115390)</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'><div><div>KakaoBank (323410)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 ex-TOP"}'>KOSPI 200 ex-TOP</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"L&amp;L (115390)"}'>L&amp;L (115390)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Factor Tilt Momentum"}'>KOSPI 200 Factor Tilt Momentum</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Factor Tilt LowVol"}'>KOSPI 200 Factor Tilt LowVol</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"L&amp;L (115390)"}'>L&amp;L (115390)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Factor Tilt Value"}'>KOSPI 200 Factor Tilt Value</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Factor Tilt Quality"}'>KOSPI 200 Factor Tilt Quality</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"L&amp;L (115390)"}'>L&amp;L (115390)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 GIVI"}'>KOSPI 200 GIVI</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td data-sheets-value='{"1":2,"2":"L&amp;L (115390)"}'>L&amp;L (115390)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Climate Change"}'>KOSPI 200 Climate Change</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td data-sheets-value='{"1":2,"2":"L&amp;L (115390)"}'>L&amp;L (115390)</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 100"}'><strong>KOSPI 100</strong></td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'><strong>KakaoBank (323410)</strong></td>
<td data-sheets-value='{"1":2,"2":"OTTOGI (007310)"}'><div><div><strong>OTTOGI (007310)</strong></div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 50"}'>KOSPI 50</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"COWAY (021240)"}'><div><div>COWAY (021240)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KRX 300"}'>KRX 300</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KRX 300 Financials"}'>KRX 300 Financials</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KRX Bank"}'>KRX Bank</td>
<td data-sheets-value='{"1":2,"2":"KakaoBank (323410)"}'>KakaoBank (323410)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr><td colspan="3" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><h2>2. Krafton in &amp; JW Pharma out</h2><p>Krafton is included in the KOSPI 200 through Fast Entry, replacing JW Pharma (001060). This is also an expected result. This is because JW Pharma, along with Lock&amp;Lock, was the stock with the lowest daily average market cap during the last rebalancing review period. And the stock excluded from the KOSPI 100 is Posco International (047050).</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Krafton"}'>Krafton</td>
<td data-sheets-value='{"1":2,"2":"Add"}'>Add</td>
<td data-sheets-value='{"1":2,"2":"Delete"}'>Delete</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200"}'><strong>KOSPI 200</strong></td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'><strong>KRAFTON (259960)</strong></td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'><div><div><strong>JWPHARMA (001060)</strong></div></div></td>
</tr>
<tr><td colspan="3"><div><div><strong> </strong></div></div></td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Communication Service"}'>KOSPI 200 Communication Service</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Health Care"}'>KOSPI 200 Health Care</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'><div><div>JWPHARMA (001060)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 MidSmallCap"}'>KOSPI 200 MidSmallCap</td>
<td data-sheets-value='{"1":2,"2":"POSCO INTERNATIONAL (047050)"}'>POSCO INTERNATIONAL (047050)</td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'><div><div>JWPHARMA (001060)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI ex-KOSPI 200"}'>KOSPI ex-KOSPI 200</td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'>JWPHARMA (001060)</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'><div><div>KRAFTON (259960)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 ex-TOP"}'>KOSPI 200 ex-TOP</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'><div><div>JWPHARMA (001060)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Factor Tilt Momentum"}'>KOSPI 200 Factor Tilt Momentum</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Factor Tilt LowVol"}'>KOSPI 200 Factor Tilt LowVol</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'><div><div>JWPHARMA (001060)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Factor Tilt Value"}'>KOSPI 200 Factor Tilt Value</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Factor Tilt Quality"}'>KOSPI 200 Factor Tilt Quality</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Consumer Goods"}'>KOSPI 200 Consumer Goods</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'><div><div>JWPHARMA (001060)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Low Volatility High Dividend Index"}'>KOSPI 200 Low Volatility High Div Index</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'><div><div>JWPHARMA (001060)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 GIVI"}'>KOSPI 200 GIVI</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'><div><div>JWPHARMA (001060)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 200 Climate Change"}'>KOSPI 200 Climate Change</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
<td data-sheets-value='{"1":2,"2":"JWPHARMA (001060)"}'><div><div>JWPHARMA (001060)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 100"}'><strong>KOSPI 100</strong></td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'><strong>KRAFTON (259960)</strong></td>
<td data-sheets-value='{"1":2,"2":"POSCO INTERNATIONAL (047050)"}'><div><div><strong>POSCO INTERNATIONAL (047050)</strong></div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KOSPI 50"}'>KOSPI 50</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"Kangwonland (035250)"}'><div><div>Kangwonland (035250)</div></div></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KRX 300"}'>KRX 300</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KRX 300 Communication Service"}'>KRX 300 Communication Service</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"KRX Media &amp; Entertainment"}'>KRX Media &amp; Entertainment</td>
<td data-sheets-value='{"1":2,"2":"KRAFTON (259960)"}'>KRAFTON (259960)</td>
<td data-sheets-value='{"1":2,"2":"None"}'>None</td>
</tr>
<tr><td colspan="3" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

KRX officially announced the KOSPI 200 Fast Entry results of Kakao Bank and Krafton. KRX also announced the changes of KOSPI sector indices accordingly.The effective date is September 10th, so the rebalancing trading should occur at the close on September 9th.1. Kakao Bank in and Lock&amp;Lock outBelow are the changes following the inclusion of Kakao Bank's index. As expected, Lock&amp;Lock (115390) was removed from the KOSPI 200. Lock&amp;Lock was one of the two stocks with the lowest daily average market cap during the most recent rebalancing review period, from November 1 of last year to April 30. Another thing worth noting is that the stock excluded from the KOSPI 100 is Ottogi (007310).







Kakao Bank
Add
Delete


KOSPI 200
KakaoBank (323410)
L&amp;L (115390)

 

KOSPI 200 Financials
KakaoBank (323410)
None


KOSPI 200 Consumer discretionary
None
L&amp;L (115390)


KOSPI 200 MidSmallCap
OTTOGI (007310)
L&amp;L (115390)


KOSPI ex-KOSPI 200
L&amp;L (115390)
KakaoBank (323410)


KOSPI 200 ex-TOP
KakaoBank (323410)
L&amp;L (115390)


KOSPI 200 Factor Tilt Momentum
KakaoBank (323410)
None


KOSPI 200 Factor Tilt LowVol
KakaoBank (323410)
L&amp;L (115390)


KOSPI 200 Factor Tilt Value
KakaoBank (323410)
None


KOSPI 200 Factor Tilt Quality
KakaoBank (323410)
L&amp;L (115390)


KOSPI 200 GIVI
None
L&amp;L (115390)


KOSPI 200 Climate Change
None
L&amp;L (115390)


KOSPI 100
KakaoBank (323410)
OTTOGI (007310)


KOSPI 50
KakaoBank (323410)
COWAY (021240)


KRX 300
KakaoBank (323410)
None


KRX 300 Financials
KakaoBank (323410)
None


KRX Bank
KakaoBank (323410)
None

Source: KRX

2. Krafton in &amp; JW Pharma outKrafton is included in the KOSPI 200 through Fast Entry, replacing JW Pharma (001060). This is also an expected result. This is because JW Pharma, along with Lock&amp;Lock, was the stock with the lowest daily average market cap during the last rebalancing review period. And the stock excluded from the KOSPI 100 is Posco International (047050).







Krafton
Add
Delete


KOSPI 200
KRAFTON (259960)
JWPHARMA (001060)

 

KOSPI 200 Communication Service
KRAFTON (259960)
None


KOSPI 200 Health Care
None
JWPHARMA (001060)


KOSPI 200 MidSmallCap
POSCO INTERNATIONAL (047050)
JWPHARMA (001060)


KOSPI ex-KOSPI 200
JWPHARMA (001060)
KRAFTON (259960)


KOSPI 200 ex-TOP
KRAFTON (259960)
JWPHARMA (001060)


KOSPI 200 Factor Tilt Momentum
KRAFTON (259960)
None


KOSPI 200 Factor Tilt LowVol
KRAFTON (259960)
JWPHARMA (001060)


KOSPI 200 Factor Tilt Value
KRAFTON (259960)
None


KOSPI 200 Factor Tilt Quality
KRAFTON (259960)
None


KOSPI 200 Consumer Goods
None
JWPHARMA (001060)


KOSPI 200 Low Volatility High Div Index
None
JWPHARMA (001060)


KOSPI 200 GIVI
None
JWPHARMA (001060)


KOSPI 200 Climate Change
None
JWPHARMA (001060)


KOSPI 100
KRAFTON (259960)
POSCO INTERNATIONAL (047050)


KOSPI 50
KRAFTON (259960)
Kangwonland (035250)


KRX 300
KRAFTON (259960)
None


KRX 300 Communication Service
KRAFTON (259960)
None


KRX Media &amp; Entertainment
KRAFTON (259960)
None

Source: KRX



KOSPI 200 September Rebalancing Results & Passive Impact Estimations

South Korea

Krafton, Inc. operates as a game development company. The Company develops console games, mobile games, computer games, and other related products. Krafton markets its products throughout South Korea.

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Krafton (259960 KS)

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52-week Range

Market Cap (USDm)

P/E

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