Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

The Korea Exchange announced its KOSDAQ150 and KRX300 indices rebalances today. There were 17 new additions and 17 deletions for KOSDAQ150. Most of the stocks that were expected to be included in KOSDAQ 150 were officially included in the rebalance. However there were a few surprises. For example <a href="https://www.smartkarma.com/entities/nanos-co-ltd" target="_blank" data-smartkarma-citation="entities:16796:1" rel="noopener">Nanos Co Ltd (151910 KS),</a>which was one of the stocks that was expected to be included in KOSDAQ150, did not get included in this indext this time. On the other hand, the following stocks including <a href="https://www.smartkarma.com/entities/sang-a-frontec-co-ltd" target="_blank" data-smartkarma-citation="entities:20692:1" rel="noopener">Sang A Frontec (089980 KS)</a>, Novarex (194700 KS(, CIS (222080 KS), MedPacto (215980 KS), <a href="https://www.smartkarma.com/entities/koreacenter-com-co-ltd" target="_blank" data-smartkarma-citation="entities:28329:1" rel="noopener">Koreacenter.com Co Ltd (290510 KS)</a>, and Soulbrain (357780 KS) which were not on the top of the lists of getting selected into the KOSDAQ150 index by the locals, were formally selected be part of the new KOSDAQ150 inclusions.  The Korea Exchange also made changes to the KRX300 index. Although the KRX300 index is not currently as important as KOSPI200 and KOSDAQ150 indices, it is increasingly gaining in importance among the local institutional investors. The KRX300 had 33 new additions and 35 deletions.

The Korea Exchange announced its KOSDAQ150 and KRX300 indices rebalances today. There were 17 new additions and 17 deletions for KOSDAQ150. Most of the stocks that were expected to be included in KOSDAQ 150 were officially included in the rebalance. However there were a few surprises. For example Nanos Co Ltd (151910 KS),which was one of the stocks that was expected to be included in KOSDAQ150, did not get included in this indext this time. On the other hand, the following stocks including Sang A Frontec (089980 KS), Novarex (194700 KS(, CIS (222080 KS), MedPacto (215980 KS), Koreacenter.com Co Ltd (290510 KS), and Soulbrain (357780 KS) which were not on the top of the lists of getting selected into the KOSDAQ150 index by the locals, were formally selected be part of the new KOSDAQ150 inclusions.  The Korea Exchange also made changes to the KRX300 index. Although the KRX300 index is not currently as important as KOSPI200 and KOSDAQ150 indices, it is increasingly gaining in importance among the local institutional investors. The KRX300 had 33 new additions and 35 deletions. 

KOSDAQ150 and KRX300 Indices Rebalances (Overlapping Additions & Deletions)

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

Index Rebalance

<ul>
<li>The annual rebalance of the Korea Value-Up Index will take place at the close of trading on 11 June. There are 20 adds and 19 deletes for the index.</li>
<li>There will be big capping flows for <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> and <a href="https://www.smartkarma.com/entities/sk-hynix-inc" target="_blank" data-smartkarma-citation="entities:16955:1" rel="noopener">SK Hynix (000660 KS)</a>, leading to one-way turnover of 30% and a round-trip trade of US$1.4bn.</li>
<li>Industrials stocks gain 8 index spots while Information Technology and Consumer Discretionary stocks are net losers with 5 and 3 spots lost respectively.</li>
</ul>


The annual rebalance of the Korea Value-Up Index will take place at the close of trading on 11 June. There are 20 adds and 19 deletes for the index.
There will be big capping flows for Samsung Electronics (005930 KS) and SK Hynix (000660 KS), leading to one-way turnover of 30% and a round-trip trade of US$1.4bn.
Industrials stocks gain 8 index spots while Information Technology and Consumer Discretionary stocks are net losers with 5 and 3 spots lost respectively.


Korea Value-Up Index Rebalance: US$1.4bn Round-Trip Trade Tomorrow

Douglas Research Advisory

<ul>
<li>Korea Value-Up Index will be rebalanced on 12 June. Korea Value Up index is up 234% in the past one year, outperforming KOSPI (up 184%) and KOSDAQ (up 27%). </li>
<li>However, Korea Value Up index has slightly underperformed KOSPI 200 index which is up 238% in the same period. </li>
<li>AUMs of the 13 major ETFs that track the Korea Value Up index rose to 4.0 trillion won as of 9 June 2026 (up 217% from beginning of year). </li>
</ul>


Korea Value-Up Index will be rebalanced on 12 June. Korea Value Up index is up 234% in the past one year, outperforming KOSPI (up 184%) and KOSDAQ (up 27%). 
However, Korea Value Up index has slightly underperformed KOSPI 200 index which is up 238% in the same period. 
AUMs of the 13 major ETFs that track the Korea Value Up index rose to 4.0 trillion won as of 9 June 2026 (up 217% from beginning of year). 


Highlights of the Korea Value-Up Index Rebalance on 12 June

Thematic (Sector/Industry)

On February 23rd, the Korean government announced numerous domestic consumption boosting measures. Among them included a discount of 30-50% on KTX (high speed rail in Korea) if the tickets are purchased 25 days in advance. This discount on high speed rail is effective starting August. This annoucement is likely to negatively impact the domestic low cost airlines such as Jeju Airlines as well as major airlines such as <a href="https://www.smartkarma.com/entities/1896" target="_blank" data-smartkarma-citation="entities:1896:1">Asiana Airlines (020560 KS)</a> since there will likely be more people that will…

On February 23rd, the Korean government announced numerous domestic consumption boosting measures. Among them included a discount of 30-50% on KTX (high speed rail in Korea) if the tickets are purchased 25 days in advance. This discount on high speed rail is effective starting August. This annoucement is likely to negatively impact the domestic low cost airlines such as Jeju Airlines as well as major airlines such as Asiana Airlines (020560 KS) since there will likely be more people that will…

Korean Govt Measures To Invigorate Domestic Consumption

Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Virtual Reality (VR) is not really taking off. We had and we are still having high expectations on VR, but the actual sales numbers are quite disappointing. VR was one of the items that went flop in the recent year-end hot sales period. In fact, no VR company seems to have actually turned profits. So, many of us are questioning about the survival (or sustainability) of VR business.For instance,Sony’s PlayStations VR (PS VR) created a huge hype, but Sony achieved only less than 30% of its initial sales target for FY16. Google’s Daydream is no exception. Google initially aimed to sell 450k units of Daydream for FY16, but the actual sales number was estimated at about 260k units. Well, Samsung’s Gear VR showed a relatively better result, but we should note that most of Samsung’s Gear VRs were given to Galaxy Smartphone buyers for free. So, Samsung Gear VR’s sales number is not really relevant. Another examples are Oculus’ Rift and HTC’s Vive. Both were expected to record 300-400k units in sales, but neither has so far achieved this target. It is estimated that the sales number of both devices was only around 100k.These numbers may not be accurate. But what seems certain is that the growth rate of VR market is not meeting our high expectations.

Virtual Reality (VR) is not really taking off. We had and we are still having high expectations on VR, but the actual sales numbers are quite disappointing. VR was one of the items that went flop in the recent year-end hot sales period. In fact, no VR company seems to have actually turned profits. So, many of us are questioning about the survival (or sustainability) of VR business.For instance,Sony’s PlayStations VR (PS VR) created a huge hype, but Sony achieved only less than 30% of its initial sales target for FY16. Google’s Daydream is no exception. Google initially aimed to sell 450k units of Daydream for FY16, but the actual sales number was estimated at about 260k units. Well, Samsung’s Gear VR showed a relatively better result, but we should note that most of Samsung’s Gear VRs were given to Galaxy Smartphone buyers for free. So, Samsung Gear VR’s sales number is not really relevant. Another examples are Oculus’ Rift and HTC’s Vive. Both were expected to record 300-400k units in sales, but neither has so far achieved this target. It is estimated that the sales number of both devices was only around 100k.These numbers may not be accurate. But what seems certain is that the growth rate of VR market is not meeting our high expectations.

Stark Reality of VR Market - Telcos Are Pushing VR for 5G in Korea

South Korea

SL Corp. designs and manufactures head lamps, chassis, and power trains for autos and motorcycles.  The Company exports its products to overseas market such as North America and Australia.

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SL Corp (005850 KS)

KOSDAQ150 and KRX300 Indices Rebalances (Overlapping Additions & Deletions)

We highlight the KOSDAQ150 and KRX300 indices rebalances. There are some interesting new names, especially among those that are over lapping in...

Douglas Kim

Korea Value-Up Index Rebalance: US$1.4bn Round-Trip Trade Tomorrow

There are 20 adds and 19 deletes for the index in June, plus large capping changes for Samsung Electronics and SK Hynix, leading to one-way...

Brian Freitas

Highlights of the Korea Value-Up Index Rebalance on 12 June

AUMs of the 13 major ETFs that track the Korea Value Up index rose to 4.0 trillion won as of 9 June 2026 (up 217% from beginning of year).

Douglas Kim

Korean Govt Measures To Invigorate Domestic Consumption

On February 23rd, the Korean government announced numerous domestic consumption boosting measures. Among them included a discount of 30-50% on KTX...

Douglas Kim

Stark Reality of VR Market - Telcos Are Pushing VR for 5G in Korea

Virtual Reality (VR) is not really taking off. We had and we are still having high expectations on VR, but the actual sales numbers are quite...

Sanghyun Park

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