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.

Index Rebalance

Samsung KODEX Semicon ETF / Index Rebalance

<ul>
<li>KRX sector indices use TMI as their universe, while KOSPI cap-tier indices use all KOSPI-listed stocks, creating a key difference in universe selection.</li>
<li>KRX sector indices rebalance annually after September expiry, using September TMI (reviewed end-July) as their universe—not the June version, despite common confusion.</li>
<li>Pre-Positioning is uncertain; market likely waits for August’s September TMI results before building positions. KOSPI cap indices use August review date, with similar flow patterns starting six weeks prior.</li>
</ul>


KRX sector indices use TMI as their universe, while KOSPI cap-tier indices use all KOSPI-listed stocks, creating a key difference in universe selection.
KRX sector indices rebalance annually after September expiry, using September TMI (reviewed end-July) as their universe—not the June version, despite common confusion.
Pre-Positioning is uncertain; market likely waits for August’s September TMI results before building positions. KOSPI cap indices use August review date, with similar flow patterns starting six weeks prior.


Clarifying the Universe for Key Korean Index Rebalancings in September

Event-Driven

Shinhan SOL Shipbuilding TOP3 Plus ETF / Event-Driven

<ul>
<li>New futures launched on KRX Semis, PLUS K-Defense, and SOL Shipbuilding ETFs — the first sector-focused ETFs over 1T KRW to get futures.</li>
<li>All three sectors dominate Korea’s market, already absorbing liquidity, and ETF futures could trigger delta-hedge arb flows, pushing liquidity even higher.</li>
<li>All three indices are top-heavy, so flows in big-weight names can create spot-futures dislocations and alpha on individual spreads—especially during early MM liquidity and aggressive basis plays.</li>
</ul>


New futures launched on KRX Semis, PLUS K-Defense, and SOL Shipbuilding ETFs — the first sector-focused ETFs over 1T KRW to get futures.
All three sectors dominate Korea’s market, already absorbing liquidity, and ETF futures could trigger delta-hedge arb flows, pushing liquidity even higher.
All three indices are top-heavy, so flows in big-weight names can create spot-futures dislocations and alpha on individual spreads—especially during early MM liquidity and aggressive basis plays.


Introducing Trading Opportunities from Newly Listed Top 3 Korea Sector ETF Futures

Mirae Asset TIGER Fn Semiconductor Top 10 ETF / Event-Driven

Mirae Asset TIGER Fn Semiconductor Top 10 ETF

<ul>
<li>From a trading view, no confirmed new ETFs under the National Growth Fund yet; market expects existing ETFs to be the main liquidity and sector play tools instead.</li>
<li>Out of the KRW 150tn, ETF flows likely come from the 100tn private pool—conservative case: ~3% (KRW 4.5tn), base case: 5–7%, aggressive: up to 10% (KRW 15tn).</li>
<li>Even conservatively, about KRW 3 trillion could flow into sector ETFs, a signficant AUM boost, mainly concentrated in AI, defense, aerospace, and biotech—driving notable inflow impact.</li>
</ul>


From a trading view, no confirmed new ETFs under the National Growth Fund yet; market expects existing ETFs to be the main liquidity and sector play tools instead.
Out of the KRW 150tn, ETF flows likely come from the 100tn private pool—conservative case: ~3% (KRW 4.5tn), base case: 5–7%, aggressive: up to 10% (KRW 15tn).
Even conservatively, about KRW 3 trillion could flow into sector ETFs, a signficant AUM boost, mainly concentrated in AI, defense, aerospace, and biotech—driving notable inflow impact.


Korea’s Next Policy Momentum Play: Rapid Unfolding of the National Growth Fund

<ul>
<li>KRX confirmed no immediate changes on KRX Semicon and KRX Autos. The universe will switch from BMI to TMI large and mid-caps, with constituent updates happening in the September rebalancing.</li>
<li>TMI rebalances quarterly, while KRX Semicon and Autos rebalance annually in September. KRX confirmed these indices will use the September TMI rebalancing results.</li>
<li>TMI rebalances quarterly, likely releasing results before KRX Sector Indices, giving a window to predict shifts in KRX Semicon and Autos stocks and position ahead of the sector rebalancing.</li>
</ul>


KRX confirmed no immediate changes on KRX Semicon and KRX Autos. The universe will switch from BMI to TMI large and mid-caps, with constituent updates happening in the September rebalancing.
TMI rebalances quarterly, while KRX Semicon and Autos rebalance annually in September. KRX confirmed these indices will use the September TMI rebalancing results.
TMI rebalances quarterly, likely releasing results before KRX Sector Indices, giving a window to predict shifts in KRX Semicon and Autos stocks and position ahead of the sector rebalancing.


KRX's Responses to TMI-Related Confusions on KRX Semicon & Autos Rebalancing

South Korea

Samsung KODEX Semicon ETF is an Exchange Traded Fund established in South Korea. The Fund's objective is to provide investment return that corresponds closely to the performance of the KRX Semicon Index.  The Fund invests in a portfolio that consists of the securities in the KRXSEMI Index with full replication in principle, or sampling method, when necessary.

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Samsung KODEX Semicon ETF (091160 KS)

Clarifying the Universe for Key Korean Index Rebalancings in September

This post clarifies the key issues concerning the universe (scope and timing) of key index rebalancing events in Korea this September.

Sanghyun Park

Introducing Trading Opportunities from Newly Listed Top 3 Korea Sector ETF Futures

This post introduces key trading opportunities emerging from the newly listed top 3 sector ETF futures in Korea’s local market.

Sanghyun Park

Korea’s Next Policy Momentum Play: Rapid Unfolding of the National Growth Fund

This post flags Korea’s upcoming policy driver—the swift activation of the National Growth Fund—which is set to be a major catalyst for market...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Clarifying the Universe for Key Korean Index Rebalancings in September

This post clarifies the key issues concerning the universe (scope and timing) of key index rebalancing events in Korea this September.

Sanghyun Park

Introducing Trading Opportunities from Newly Listed Top 3 Korea Sector ETF Futures

This post introduces key trading opportunities emerging from the newly listed top 3 sector ETF futures in Korea’s local market.

Sanghyun Park

Korea’s Next Policy Momentum Play: Rapid Unfolding of the National Growth Fund

This post flags Korea’s upcoming policy driver—the swift activation of the National Growth Fund—which is set to be a major catalyst for market...

Sanghyun Park

KRX's Responses to TMI-Related Confusions on KRX Semicon & Autos Rebalancing

The responses I received today from KRX regarding the confusion around the changes to the KRX Semicon and KRX Autos rebalancing brought by the...

Sanghyun Park