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

Hyosung Advanced Materials / Index Rebalance

AnnouncementThe KRX has just announced the results of the KOSPI 200 semi-annual rebalancing. The KRX will reflect the changes in the index calculation at the close of June 10. 5 in total newly make KOSPI 200, while 7 names leave the index.
LX Holdings (383800 KS) will be added to the index on May 28 and remain in KOSPI 200 after June 11.
SK IE Technology (361610 KS) will be added to the index on June 11 if it meets the fast-entry conditions. In such a case, HDC (012630 KS) will be deleted. KRX will officially announce it on June 2.









KOSPI 200 additions
Ticker
KOSPI 200 deletions
Ticker


Hyosung Advanced Materials Corp
298050
Tae Young Engineering&amp;Constructin Co Ltd
009410


Taihan Electric Wire Co Ltd
001440
Namsun Aluminum Co Ltd
008350


Hyosung TNC Corp
298020
Binggrae Co Ltd
005180


Dongwon Industries Co., Ltd
006040
Hanil Hyundai Cement Co Ltd
006390


SK Bioscience Co Ltd
302440
Samyang Corp
145990




SPC Samlip Co Ltd
005610




Aekyung Industrial Co Ltd
018250

Source: KRX

Passive flow estimationSK Bioscience will enjoy the largest passive inflow estimated at ₩179.8B. But Dongwon Industries will face the biggest impact as its estimated passive inflow takes 11.65 days to buy. The other 4 additions need less than 2 days to buy.








KOSPI 200 adds - passive inflow
Ticker
Estimated passive inflow
Days to buy


Hyosung Advanced Materials Corp
298050
₩40.2B
1.09x


Taihan Electric Wire Co Ltd
001440
₩29.3B
1.63x


Hyosung TNC Corp
298020
₩57.3B
0.83x


Dongwon Industries Co., Ltd
006040
₩16.9B
11.65x


SK Bioscience Co Ltd
302440
₩179.8B
1.02x

Source: KRX &amp; FnGuide

Namsun Aluminum will lose the largest passive money estimated at ₩28.3B, requiring 2.43 days to cover. But Binggrae will likely encounter the harshest impact, requiring 6.10 days to cover.








KOSPI 200 deletes - passive outflow
Ticker
Estimated passive outflow
Days to cover


Tae Young Engineering&amp;Constructin Co Ltd
009410
₩14.5B
2.54x


Namsun Aluminum Co Ltd
008350
₩28.3B
2.43x


Binggrae Co Ltd
005180
₩22.3B
6.10x


Hanil Hyundai Cement Co Ltd
006390
₩6.5B
2.67x


Samyang Corp
145990
₩7.2B
2.01x


SPC Samlip Co Ltd
005610
₩7.3B
0.46x


Aekyung Industrial Co Ltd
018250
₩20.8B
1.90x

Source: KRX &amp; FnGuide

Price performanceAll of the additions have had a decent rally as they move into the rebalancing date. Hyosung Advanced Materials had a bit of correction of late, though.The deletions have had mostly a strong performance on a year-to-date basis. But everyone had a downward correction in the recent days, probably due to the index rebalancing. Short interestI don't see a heavy short interest in any of the deletes yet. Namsun Aluminum has the highest short interest to float shares ratio at 3.33%, which is still 1.16 days to cover. But that doesn't mean that short-sellers aren't waiting on these deletes. Everyone carries a pretty heavy loan balance. As for Binggare, the loan balance is 8 times its 30-day average daily trade volume, leaving the most substantial room for new short positions. 











KOSPI 200 deletes - short interest
Ticker
Short interest to float shares
Days to cover
Loan balance to float shares
Loan balance to ADTV
30-day average daily trade value


Tae Young Engineering&amp;Constructin Co Ltd
009410
1.05%
0.44x
6.86%
2.89x
₩5.7B


Namsun Aluminum Co Ltd
008350
3.33%
1.16x
7.26%
2.53x
₩11.7B


Binggrae Co Ltd
005180
1.19%
1.26x
7.51%
8.01x
₩3.7B


Hanil Hyundai Cement Co Ltd
006390
1.08%
0.35x
8.67%
2.79x
₩2.4B


Samyang Corp
145990
1.59%
0.58x
10.47%
3.85x
₩3.6B


SPC Samlip Co Ltd
005610
0.76%
0.16x
14.46%
2.95x
₩3.4B


Aekyung Industrial Co Ltd
018250
0.84%
0.45x
5.86%
3.11x
₩4.2B

Source: KRX



KOSPI 200 Rebalancing: Changes, Passive Flow, & Trade Approach

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

The review period for the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> June review ends on 30 April. The Korea Exchange (KRX) will announce the results of the June 2021 review of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> in May with the changes becoming effective after the close of trading on 10 June.There are currently 201 index constituents following the spin off of <a href="https://www.smartkarma.com/entities/daelim-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:18095:1" rel="noopener">DL Co Ltd (000210 KS)</a> and the inclusion of <a href="https://www.smartkarma.com/entities/dl-e-c-co-ltd" target="_blank" data-smartkarma-citation="entities:31375:1" rel="noopener">DL E&amp;C Co Ltd (375500 KS)</a> in the index. There will be 202 index constituents following the spin off of <a href="https://www.smartkarma.com/entities/lg-corp" target="_blank" data-smartkarma-citation="entities:6653:1" rel="noopener">LG Corp (003550 KS)</a> and the inclusion of LX Holdings in the index.We currently see 3 inclusions and 5 exclusions from the index. The potential inclusions are <a href="https://www.smartkarma.com/entities/hyosung-tnc-co-ltd" target="_blank" data-smartkarma-citation="entities:27749:1" rel="noopener">Hyosung TNC Co Ltd (298020 KS)</a>, <a href="https://www.smartkarma.com/entities/hyosung-advanced-materials-corporation" target="_blank" data-smartkarma-citation="entities:27751:1" rel="noopener">Hyosung Advanced Materials (298050 KS)</a> and <a href="https://www.smartkarma.com/entities/dongwon-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:1783:1" rel="noopener">Dongwon Industries (006040 KS)</a>, while the potential deletions are <a href="https://www.smartkarma.com/entities/taeyoung-engineering-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:18740:1" rel="noopener">Taeyoung Engineering &amp; Construction (009410 KS)</a>, <a href="https://www.smartkarma.com/entities/namsun-aluminum-co-ltd" target="_blank" data-smartkarma-citation="entities:17514:1" rel="noopener">Namsun Aluminum (008350 KS)</a>, <a href="https://www.smartkarma.com/entities/binggrae-co-ltd" target="_blank" data-smartkarma-citation="entities:16424:1" rel="noopener">Binggrae Co Ltd (005180 KS)</a>, <a href="https://www.smartkarma.com/entities/hanil-hyundai-cement-co-ltd" target="_blank" data-smartkarma-citation="entities:14406:1" rel="noopener">Hanil Hyundai Cement (006390 KS)</a> and <a href="https://www.smartkarma.com/entities/samyang-corp" target="_blank" data-smartkarma-citation="entities:16321:1" rel="noopener">Samyang Corp (145990 KS)</a>. The expected Fast Entry of <a href="https://www.smartkarma.com/entities/sk-bioscience-co-ltd" target="_blank" data-smartkarma-citation="entities:31484:1" rel="noopener">SK Bioscience (302440 KS)</a> could result in <a href="https://www.smartkarma.com/entities/spc-samlip" target="_blank" data-smartkarma-citation="entities:6007:1" rel="noopener">SPC Samlip (005610 KS)</a> being deleted from the index.The potential Fast Entry of <a href="https://www.smartkarma.com/entities/sk-ie-technology" target="_blank" data-smartkarma-citation="entities:29207:1" rel="noopener">SK IE Technology (SKIET KS)</a> could result in <a href="https://www.smartkarma.com/entities/aekyung-industrial-co-ltd" target="_blank" data-smartkarma-citation="entities:27129:1" rel="noopener">Aekyung Industrial Co Ltd (018250 KS)</a> being deleted from the index.<a href="https://www.smartkarma.com/entities/taihan-electric-wire-co-ltd" target="_blank" data-smartkarma-citation="entities:11551:1" rel="noopener">Taihan Electric Wire (001440 KS)</a> is a very close add - the next 5 trading days will decide if the stock is added to the index or not.Short selling in Korea is scheduled to resume on 3 May and there could be a fair amount of movement in the stocks ahead of the index review announcement and implementation date.

The review period for the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) June review ends on 30 April. The Korea Exchange (KRX) will announce the results of the June 2021 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in May with the changes becoming effective after the close of trading on 10 June.There are currently 201 index constituents following the spin off of DL Co Ltd (000210 KS) and the inclusion of DL E&amp;C Co Ltd (375500 KS) in the index. There will be 202 index constituents following the spin off of LG Corp (003550 KS) and the inclusion of LX Holdings in the index.We currently see 3 inclusions and 5 exclusions from the index. The potential inclusions are Hyosung TNC Co Ltd (298020 KS), Hyosung Advanced Materials (298050 KS) and Dongwon Industries (006040 KS), while the potential deletions are Taeyoung Engineering &amp; Construction (009410 KS), Namsun Aluminum (008350 KS), Binggrae Co Ltd (005180 KS), Hanil Hyundai Cement (006390 KS) and Samyang Corp (145990 KS). The expected Fast Entry of SK Bioscience (302440 KS) could result in SPC Samlip (005610 KS) being deleted from the index.The potential Fast Entry of SK IE Technology (SKIET KS) could result in Aekyung Industrial Co Ltd (018250 KS) being deleted from the index.Taihan Electric Wire (001440 KS) is a very close add - the next 5 trading days will decide if the stock is added to the index or not.Short selling in Korea is scheduled to resume on 3 May and there could be a fair amount of movement in the stocks ahead of the index review announcement and implementation date.

KOSPI200 Index Rebalance Preview: Review Period Almost Complete; Short Selling Commences in a Week

Event-Driven

KOSPI 200 June rebalancing review period is November 1 to April 30.The change will become effective on the next trading day of the 2nd Thursday of June, June 11.Below is the first batch of the likely candidates based on the November 1~March 10 average market caps.A total of 192 names make the list.
Select candidates for each sector in order by avg daily MC (the cumulative cutoff at the 85th percentile)
Include the first company that crosses the 85th percentile mark
Exclude those whose avg DTV ranking is below the 85th percentile or (only new entrants) whose avg daily MC ranking is above 110%
If not 200, then re-select current constituents whose avg daily MC ranking is within 110%













Name
Ticker
Sector
KOSPI 200
MC C
MC R
DTV C
MC (₩B)


Samsung Electronics Co Ltd
005930
IT
1
70.19%
11.11%
1.56%
458,493.0


SK Hynix Inc
000660
IT
2
83.40%
22.22%
3.13%
86,251.5


LG Chem Ltd
051910
Mat
3
33.53%
3.57%
0.61%
65,567.7


Samsung Biologics Co Ltd
207940
HC
17
32.65%
5.56%
7.27%
52,382.9


Naver Corp
035420
Comm
5
31.13%
10.00%
3.57%
52,326.4


Hyundai Motor Co
005380
CD
7
21.89%
2.78%
1.96%
45,526.1


Samsung SDI Co Ltd
006400
IT
6
90.12%
33.33%
4.69%
43,886.8


Celltrion, Inc.
068270
HC
4
57.96%
11.11%
1.82%
40,628.5


Kakao Corp
035720
Comm
8
53.10%
20.00%
7.14%
36,922.7


Kia Motors Corporation
000270
CD
12
35.68%
5.56%
0.65%
28,668.0


HYUNDAI MOBIS CO., LTD.
012330
CD
13
48.71%
8.33%
2.61%
27,092.3


LG Household &amp; Healthcare Ltd
051900
CS
14
23.69%
3.85%
4.17%
24,585.9


Samsung C&amp;T Corp
028260
Ind
16
11.94%
2.08%
4.17%
24,257.7


POSCO
005490
Mat
9
45.84%
7.14%
1.83%
24,083.8


SK Innovation Co Ltd
096770
Energy
20
58.35%
25.00%
11.11%
20,749.0


LG Electronics Inc.
066570
CD
19
58.61%
11.11%
1.31%
20,588.0


NCSoft Corp
036570
Comm
18
64.97%
30.00%
14.29%
19,947.6


SK Telecom Co Ltd
017670
Comm
10
76.65%
40.00%
17.86%
19,637.4


KB Financial Group Inc
105560
Fin &amp; RE
11
12.75%
5.56%
1.54%
18,770.6


SK Holdings Co Ltd
034730
Ind
24
20.99%
4.17%
1.79%
18,386.7


Shinhan Financial Group Co., Ltd.
055550
Fin &amp; RE
15
24.36%
11.11%
3.08%
17,103.9


LG Corp
003550
Ind
27
28.57%
6.25%
7.14%
15,411.7


Korea Electric Power Corporation
015760
Util
26
69.88%
50.00%
7.14%
15,160.3


Samsung Life Insurance co., Ltd
032830
Fin &amp; RE
30
34.54%
16.67%
7.69%
14,976.3


Samsung SDS Co Ltd
018260
IT
31
92.35%
44.44%
17.19%
14,556.4


Samsung Electro-Mechanics Co., Ltd.
009150
IT
22
94.39%
55.56%
7.81%
13,344.4


SK Biopharmaceuticals Co Ltd
326030
HC
51
65.63%
16.67%
10.91%
12,296.1


Amorepacific Corp
090430
CS
28
35.47%
7.69%
2.78%
12,219.8


KT&amp;G Corp
033780
CS
23
46.44%
11.54%
6.94%
11,376.0


Netmarble Corp
251270
Comm
25
83.20%
50.00%
25.00%
11,000.4


Hana Financial Group Inc
086790
Fin &amp; RE
21
41.89%
22.22%
6.15%
10,831.0


Lotte Chemical Corp
011170
Mat
37
51.10%
10.71%
3.05%
10,279.0


Posco Chemical Co Ltd
003670
Mat
56
55.79%
14.29%
3.66%
9,182.0


Samsung Fire &amp; Marine Insurance Co Ltd
000810
Fin &amp; RE
32
47.87%
27.78%
9.23%
8,803.3


Hanon Systems
018880
CD
38
62.75%
13.89%
8.50%
8,610.4


S Oil Corp
010950
Energy
52
81.55%
50.00%
22.22%
8,246.9


Hanwha Solutions Corp
009830
Mat
36
59.80%
17.86%
4.88%
7,843.4


Korea Zinc Inc
010130
Mat
48
63.80%
21.43%
11.59%
7,808.8


Korea Shipbuilding &amp;Offshore Engn Co Ltd
009540
Ind
35
32.21%
8.33%
7.74%
7,398.1


Kumho Petro Chemical Co Ltd
011780
Mat
66
67.54%
25.00%
1.22%
7,331.3


Hyundai Glovis Co Ltd
086280
Ind
45
35.76%
10.42%
2.38%
7,218.3


Woori Financial Group Inc
316140
Fin &amp; RE
33
52.65%
33.33%
18.46%
7,044.6


LG Display Co Ltd
034220
IT
40
95.45%
66.67%
9.38%
6,938.1


Big Hit Entertainment Co Ltd
352820
Comm
34
87.16%
60.00%
10.71%
6,655.9


Industrial Bank of Korea
024110
Fin &amp; RE
68
57.10%
38.89%
16.92%
6,541.2


KT Corp
030200
Comm
79
90.96%
70.00%
28.57%
6,389.7


Mirae Asset Daewoo Co Ltd
006800
Fin &amp; RE
42
61.34%
44.44%
15.38%
6,254.0


Shinpoong Pharmaceutical Co Ltd
019170
HC
29
69.47%
22.22%
3.64%
6,165.9


CJ Cheiljedang Corp
097950
CS
58
52.26%
15.38%
8.33%
6,040.2


Hyundai Steel Co
004020
Mat
43
70.35%
28.57%
8.54%
5,483.9


Coway Co Ltd
021240
CD
39
65.28%
16.67%
16.99%
5,253.3


LG Uplus Corp
032640
Comm
47
94.08%
80.00%
32.14%
5,237.8


Kangwon Land, Inc.
035250
CD
54
67.72%
19.44%
11.76%
5,091.3


Doosan Heavy Industries Constrctn Co Ltd
034020
Ind
60
38.25%
12.50%
13.69%
5,057.8


Hankook Tire &amp; Technology Co Ltd
161390
CD
59
70.14%
22.22%
14.38%
5,019.9


Orion Corp
271560
CS
61
56.96%
19.23%
13.89%
4,879.3


SKC Co Ltd
011790
Mat
80
72.82%
32.14%
6.71%
4,823.7


HMM Co Ltd
011200
Ind
41
40.60%
14.58%
0.60%
4,764.3


Amorepacific Group
002790
CS
87
61.51%
23.08%
18.06%
4,725.4


Hanmi Science Co Ltd
008930
HC
86
72.37%
27.78%
38.18%
4,659.2


Yuhan Corp
000100
HC
46
75.27%
33.33%
27.27%
4,640.3


Green Cross Corp
006280
HC
75
78.14%
38.89%
5.45%
4,616.0


E-Mart Inc
139480
CS
50
65.93%
26.92%
5.56%
4,579.2


Korea Investment Holdings Co., Ltd.
071050
Fin &amp; RE
49
64.45%
50.00%
12.31%
4,571.6


SK Chemicals Co Ltd
285130
Mat
55
75.10%
35.71%
2.44%
4,475.6


Hanjin Kal
180640
Ind
100
42.77%
16.67%
39.88%
4,418.4


LG Innotek Co., Ltd.
011070
IT
67
96.12%
77.78%
10.94%
4,354.9


Hyundai Engineering &amp; Construction Co.
000720
Ind
57
44.89%
18.75%
11.31%
4,307.8


Hyundai Heavy Industries Holdings Co Ltd
267250
Ind
65
46.99%
20.83%
20.24%
4,268.1


Korean Air Lines Co Ltd
003490
Ind
44
49.05%
22.92%
3.57%
4,183.1


Samsung Heavy Industries Co.,Ltd
010140
Ind
53
51.10%
25.00%
13.10%
4,162.9


HanmiPharm
128940
HC
63
80.71%
44.44%
16.36%
4,116.4


CJ Logistics Corp
000120
Ind
76
52.98%
27.08%
22.02%
3,811.9


Samsung Card Co Ltd
029780
Fin &amp; RE
126
69.79%
61.11%
43.08%
3,807.7


Lotte Corp
004990
Ind
127
54.74%
29.17%
40.48%
3,585.8


Samsung Securities Co Ltd
016360
Fin &amp; RE
64
72.19%
66.67%
21.54%
3,536.4


GS Holdings Corp
078930
Energy
81
91.48%
75.00%
33.33%
3,532.9


KIWOOM Securities Co., Ltd.
039490
Fin &amp; RE
84
74.54%
72.22%
13.85%
3,459.7


Ssangyong Cement Industry Co Ltd
003410
Mat
132
76.86%
39.29%
18.90%
3,425.7


Doosan Fuel Cell Co Ltd
336260
Ind
105
56.42%
31.25%
4.76%
3,410.9


Dong Suh Companies Inc
026960
CS
116
69.10%
30.77%
16.67%
3,288.3


Hotel Shilla Co Ltd
008770
CD
62
71.69%
25.00%
4.58%
3,218.4


Doosan Bobcat Inc
241560
Ind
90
58.00%
33.33%
24.40%
3,203.4


NH Investment &amp; Securities Co Ltd
005940
Fin &amp; RE
83
76.71%
77.78%
29.23%
3,194.1


S1 Corp
012750
Ind
74
59.56%
35.42%
47.62%
3,181.9


GS Engineering &amp; Construction Corp
006360
Ind
70
61.10%
37.50%
12.50%
3,131.2


Cs Wind Corp
112610
Ind
120
62.62%
39.58%
9.52%
3,084.7


Lotte Shopping Co Ltd
023530
CD
108
73.15%
27.78%
12.42%
3,053.3


DB Insurance Co Ltd
005830
Fin &amp; RE
73
78.78%
83.33%
26.15%
3,043.2


Korea Gas Corp
036460
Util
112
83.18%
100.00%
14.29%
2,885.9


Daewoo Shipbuilding &amp; Marine Engineering
042660
Ind
93
64.02%
41.67%
42.26%
2,837.1


Mando Corp
204320
CD
77
74.51%
30.56%
5.88%
2,816.8


Korea Aerospace Industries Ltd
047810
Ind
82
65.40%
43.75%
5.36%
2,807.8


GS Retail Co Ltd
007070
CS
123
71.69%
34.62%
15.28%
2,688.6


Iljin Materials Co Ltd
020150
IT
122
97.01%
100.00%
18.75%
2,657.8


Fila Holdings Corp
081660
CD
71
75.79%
33.33%
18.95%
2,657.1


CJ Corp
001040
Ind
103
66.70%
45.83%
25.00%
2,641.7


Samsung Engineering Co Ltd
028050
Ind
72
67.97%
47.92%
19.64%
2,574.5


Hansol Chemical Co Ltd
014680
Mat
88
78.16%
42.86%
14.63%
2,546.2


MERITZ SECURITIES CO LTD
008560
Fin &amp; RE
98
80.49%
88.89%
33.85%
2,525.3


Pan Ocean Co Ltd
028670
Ind
117
69.20%
50.00%
5.95%
2,515.8


BGF Retail Co Ltd
282330
CS
114
74.10%
38.46%
20.83%
2,502.6


Shinsegae Inc
004170
CD
78
76.94%
36.11%
6.54%
2,400.2


Daewoong Co., Ltd.
003090
HC
129
82.19%
50.00%
30.91%
2,385.7


Cheil Worldwide Inc
030000
Comm
89
95.49%
90.00%
53.57%
2,375.3


Hanssem Co Ltd
009240
CD
115
78.08%
38.89%
28.76%
2,365.2


HiteJinro Co Ltd
000080
CS
111
76.37%
42.31%
9.72%
2,359.8


Hanwha Life Insurance Co Ltd
088350
Fin &amp; RE
138
82.03%
94.44%
10.77%
2,261.7


Oci Co Ltd
010060
Mat
92
79.28%
46.43%
5.49%
2,185.9


Hanwha Corp
000880
Ind
104
70.28%
52.08%
17.26%
2,183.2


LS Corp.
006260
Ind
99
71.35%
54.17%
20.83%
2,181.4


Chong Kun Dang Pharmaceutical Corp
185750
HC
101
83.50%
55.56%
20.00%
2,098.7


Ottogi Corp
007310
CS
149
78.37%
46.15%
37.50%
2,075.4


Daewoo Engineering &amp; Construction Co Ltd
047040
Ind
119
72.37%
56.25%
14.29%
2,075.0


Posco International Corp
047050
Ind
146
73.39%
58.33%
2.98%
2,064.8


Hyundai Marine &amp; Fire Insurance Co., Ltd
001450
Fin &amp; RE
91
83.40%
100.00%
23.08%
2,020.1


Hyundai Rotem Co
064350
Ind
110
74.37%
60.42%
11.90%
1,998.6


BNK Financial Group Inc
138930
Fin &amp; RE
85
84.70%
105.56%
27.69%
1,913.9


Hyundai Mipo Dockyard Co., Ltd.
010620
Ind
106
75.30%
62.50%
16.67%
1,886.2


Green Cross Holdings
005250
HC
131
84.66%
61.11%
14.55%
1,862.9


Hyundai Wia Corp
011210
CD
136
78.96%
41.67%
3.27%
1,834.7


LS Electric Co Ltd
010120
Ind
121
76.19%
64.58%
30.95%
1,805.9


Doosan Infracore Co Ltd
042670
Ind
97
77.07%
66.67%
14.88%
1,799.7


Korea Petro Chemical Ind Co Ltd
006650
Mat
142
80.18%
50.00%
9.76%
1,776.0


Nongshim Co Ltd
004370
CS
125
80.08%
50.00%
22.22%
1,774.8


Hyundai Department Store Co Ltd
069960
CD
109
79.81%
44.44%
11.11%
1,772.4


Hanwha Systems Co Ltd
272210
Ind
162
77.94%
68.75%
8.33%
1,762.7


Hyundai Elevator Co Ltd
017800
Ind
94
78.79%
70.83%
23.21%
1,716.2


Hyosung Corp
004800
Ind
140
79.62%
72.92%
19.05%
1,694.2


Hanall Biopharma Co Ltd
009420
HC
95
85.72%
66.67%
23.64%
1,693.8


KCC Corp
002380
Mat
130
81.05%
53.57%
25.00%
1,692.5


HDC Hyundai Development Co
294870
Ind
107
80.45%
75.00%
17.86%
1,685.6


Hanwha Aerospace Co Ltd
012450
Ind
118
81.28%
77.08%
10.71%
1,679.5


Bukwang Pharm Co Ltd
003000
HC
102
86.74%
72.22%
9.09%
1,632.9


Daewoong Pharmaceutical Co., Ltd.
069620
HC
148
87.74%
77.78%
29.09%
1,615.3


F&amp;F Co., Ltd
007700
CD
160
80.57%
47.22%
15.69%
1,568.1


IS DONGSEO CO., LTD.
010780
Ind
137
82.05%
79.17%
41.67%
1,563.5


Hankook &amp; Company Co Ltd
000240
CD
175
81.31%
50.00%
18.30%
1,545.5


Youngone Corporation
111770
CD
145
82.03%
52.78%
30.72%
1,498.7


Lotte Fine Chemical Co Ltd
004000
Mat
113
81.78%
57.14%
26.22%
1,425.4


Zinus Inc
013890
CD
128
82.71%
55.56%
35.95%
1,417.7


Yungjin Pharm Co Ltd
003520
HC
141
88.58%
83.33%
47.27%
1,347.8


KEPCO Plant Service &amp; Engineering Co Ltd
051600
Ind
147
82.68%
81.25%
45.83%
1,287.7


SK Networks Co Ltd
001740
Ind
153
83.30%
83.33%
26.79%
1,252.4


SK Discovery Co Ltd
006120
Energy
144
94.99%
100.00%
44.44%
1,249.3


Shinsegae International Inc
031430
CD
161
83.29%
58.33%
19.61%
1,205.7


Kolon Industries Inc
120110
Mat
139
82.39%
60.71%
9.15%
1,193.5


Hyosung TNC Corp
298020
CD
#N/A
83.86%
61.11%
3.92%
1,176.8


Lotte Tour Development Co., Ltd.
032350
CD
152
84.41%
63.89%
17.65%
1,152.6


Kolmar Korea Co Ltd
161890
CS
134
81.19%
53.85%
11.11%
1,150.3


Kumho Tire Co Inc
073240
CD
151
84.96%
66.67%
54.25%
1,128.5


Ilyang Pharmaceutical Co., Ltd
007570
HC
133
89.28%
88.89%
32.73%
1,122.5


Doubleu Games Co Ltd
192080
CD
159
85.49%
69.44%
33.33%
1,106.8


KG DongbuSteel Co Ltd
016380
Mat
178
82.95%
64.29%
43.90%
1,094.7


Taihan Electric Wire Co Ltd
001440
Ind
#N/A
83.81%
85.42%
18.45%
1,047.4


Cosmax Inc
192820
CS
143
82.19%
57.69%
12.50%
1,033.3


Foosung Co Ltd
093370
Mat
164
83.46%
67.86%
17.07%
1,007.3


TY Holdings Co Ltd
363280
Ind
#N/A
84.30%
87.50%
39.29%
1,001.9


Dongwon Systems Corp
014820
Mat
196
83.97%
71.43%
20.12%
1,001.2


Youngpoong Corp
000670
Mat
180
84.49%
75.00%
57.93%
999.6


Lotte Chilsung Beverage Co Ltd
005300
CS
172
83.15%
61.54%
34.72%
999.1


Boryung Pharmaceutical Co., Ltd
003850
HC
177
90.56%
100.00%
21.82%
985.6


Huchems Fine Chemical Corporation
069260
Mat
158
84.99%
78.57%
32.93%
982.1


Sebang Global Battery Co Ltd
004490
CD
176
85.96%
72.22%
9.15%
979.3


GRAND KOREA LEISURE CO LTD
114090
CD
155
86.43%
75.00%
28.10%
972.9


HYUNDAI HOME SHOPPING NETWORK CORP
057050
CD
154
87.34%
80.56%
52.29%
944.2


Taekwang Industrial Co., Ltd.
003240
Mat
200
85.47%
82.14%
56.10%
939.0


LG International Corp
001120
Ind
150
84.76%
89.58%
30.36%
929.7


Daesang Corp
001680
CS
163
84.02%
65.38%
27.78%
905.7


Cuckoo Homesys Co Ltd
284740
CD
189
87.76%
83.33%
53.59%
875.1


Dongwon Industries Co., Ltd
006040
CS
#N/A
84.86%
69.23%
65.28%
863.9


Doosan Corp
000150
Ind
183
85.18%
91.67%
48.21%
855.5


S&amp;T Motiv Co Ltd
064960
CD
173
88.17%
86.11%
26.80%
849.9


ORION Holdings Corp
001800
CS
184
85.67%
73.08%
30.56%
846.4


Hwaseung Enterprise Co Ltd
241590
CD
186
88.57%
88.89%
32.03%
843.2


Hyundai Green Food Co Ltd
005440
CS
168
86.48%
76.92%
19.44%
842.1


POONGSAN CORPORATION
103140
Mat
157
86.34%
89.29%
13.41%
825.7


LOTTE Himart Co Ltd
071840
CD
185
88.96%
91.67%
38.56%
818.1


Handsome Corp
020000
CD
169
89.34%
94.44%
33.99%
789.2


Dongkuk Steel Mill Co., Ltd
001230
Mat
156
86.74%
92.86%
18.29%
774.4


LIG Nex1 Co Ltd
079550
Ind
179
85.92%
95.83%
27.38%
743.7


Cuckoo Holdings Co Ltd
192400
CD
198
90.08%
100.00%
62.09%
737.9


Samyang Foods Co Ltd
003230
CS
170
87.19%
80.77%
40.28%
732.7


Asiana Airlines Inc
020560
Ind
135
86.64%
100.00%
25.60%
727.1


Dongwon F&amp;B Co Ltd
049770
CS
192
88.55%
88.46%
52.78%
703.6


Hansae Co., Ltd.
105630
CD
182
90.41%
102.78%
24.84%
698.1


Samyang Holdings Corp
000070
CS
187
89.19%
92.31%
33.33%
664.0


Aekyung Industrial Co Ltd
018250
CS
193
89.83%
96.15%
31.94%
657.4


HDC Holdings Co Ltd
012630
Mat
174
87.44%
100.00%
38.41%
656.9


Nexen Tire Corp
002350
CD
191
90.72%
105.56%
32.68%
633.7


SPC Samlip Co Ltd
005610
CS
197
91.05%
103.85%
66.67%
622.7


Lock&amp;Lock Co Ltd
115390
CD
194
91.01%
108.33%
47.06%
611.6

Source: KRX

Now, we have the second batch based on the second screening.
We have 8 names here.
If still not 200, then select additional names among the unselected current constituents in order by avg. MC, regardless of classification













Name
Ticker
Sector
KOSPI 200
MC C
MC R
DTV C
MC (₩B)


DB HiTek Co Ltd
000990
IT
96
97.70%
122.22%
12.50%
2,160.3


Innocean Worldwide Inc
214320
Comm
124
97.06%
110.00%
75.00%
1,221.1


CJ CGV Co Ltd
079160
Comm
165
97.58%
120.00%
42.86%
886.4


JW Pharmaceutical Corp
001060
HC
171
93.62%
133.33%
67.27%
689.6


LG HAUSYS, LTD.
108670
Ind
167
88.70%
112.50%
27.98%
673.3


KEPCO Engineering &amp; Construction Co Inc
052690
Ind
190
89.68%
118.75%
48.81%
664.0


DL Holdings Co Ltd
000210
Ind
69
90.91%
127.08%
8.93%
615.1


Samyang Corp
145990
CS
195
92.21%
111.54%
38.89%
592.5

Source: KRX



KOSPI 200 June Rebalancing Update: 4 Additions & 4 Deletions

The Korea Exchange (KRX) will announce the results of the June 2021 review of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> in May with the changes becoming effective after the close of trading on 10 June.We currently see <a href="https://www.smartkarma.com/entities/taihan-electric-wire-co-ltd" target="_blank" data-smartkarma-citation="entities:11551:1" rel="noopener">Taihan Electric Wire (001440 KS)</a>, <a href="https://www.smartkarma.com/entities/dongwon-industries-co-ltd" target="_blank" data-smartkarma-citation="entities:1783:1" rel="noopener">Dongwon Industries (006040 KS)</a>, <a href="https://www.smartkarma.com/entities/hyosung-advanced-materials-c" target="_blank" data-smartkarma-citation="entities:27751:1" rel="noopener">Hyosung Advanced Materials C (298050 KS)</a> and <a href="https://www.smartkarma.com/entities/hyosung-tnc-co-ltd" target="_blank" data-smartkarma-citation="entities:27749:1" rel="noopener">Hyosung TNC Co Ltd (298020 KS)</a> as potential inclusions in the index, with <a href="https://www.smartkarma.com/entities/taeyoung-engineering-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:18740:1" rel="noopener">Taeyoung Engineering &amp; Construction (009410 KS)</a>, <a href="https://www.smartkarma.com/entities/namsun-aluminum-co-ltd" target="_blank" data-smartkarma-citation="entities:17514:1" rel="noopener">Namsun Aluminum (008350 KS)</a>, <a href="https://www.smartkarma.com/entities/hanil-hyundai-cement-co-ltd" target="_blank" data-smartkarma-citation="entities:14406:1" rel="noopener">Hanil Hyundai Cement (006390 KS)</a> and <a href="https://www.smartkarma.com/entities/binggrae-co-ltd" target="_blank" data-smartkarma-citation="entities:16424:1" rel="noopener">Binggrae Co Ltd (005180 KS)</a> as the corresponding exclusions.<a href="https://www.smartkarma.com/entities/sk-bioscience-co-ltd" target="_blank" data-smartkarma-citation="entities:31484:1" rel="noopener">SK Bioscience (302440 KS)</a> is expected to list on the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-index" target="_blank" data-smartkarma-citation="entities:22911:1" rel="noopener">Korea Stock Exchange Kospi Index (KOSPI INDEX)</a> market in March and there is a possibility that the stock gets Fast Entry into the index. That could see <a href="https://www.smartkarma.com/entities/sebang-global-battery-co-ltd" target="_blank" data-smartkarma-citation="entities:9618:1" rel="noopener">Sebang Global Battery (004490 KS)</a> being deleted from the index.<a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (1486402D KS)</a> is another possible Fast Entry into the index though there are few details available on when the stock is expected to list.The short sell ban in Korea has been extended to 2 May. Stocks that are constituents of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> and <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> can be short sold from 3 May. The commencement of short selling on these stocks prior to the announcement of the June review changes could result in the expected inclusions outperforming the expected exclusions and opening up other interesting trading strategies.

The Korea Exchange (KRX) will announce the results of the June 2021 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in May with the changes becoming effective after the close of trading on 10 June.We currently see Taihan Electric Wire (001440 KS), Dongwon Industries (006040 KS), Hyosung Advanced Materials C (298050 KS) and Hyosung TNC Co Ltd (298020 KS) as potential inclusions in the index, with Taeyoung Engineering &amp; Construction (009410 KS), Namsun Aluminum (008350 KS), Hanil Hyundai Cement (006390 KS) and Binggrae Co Ltd (005180 KS) as the corresponding exclusions.SK Bioscience (302440 KS) is expected to list on the Korea Stock Exchange Kospi Index (KOSPI INDEX) market in March and there is a possibility that the stock gets Fast Entry into the index. That could see Sebang Global Battery (004490 KS) being deleted from the index. Krafton Inc (1486402D KS) is another possible Fast Entry into the index though there are few details available on when the stock is expected to list.The short sell ban in Korea has been extended to 2 May. Stocks that are constituents of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) and KOSDAQ 150 Index (KOSDQ150 INDEX) can be short sold from 3 May. The commencement of short selling on these stocks prior to the announcement of the June review changes could result in the expected inclusions outperforming the expected exclusions and opening up other interesting trading strategies.

KOSPI200 Index Rebalance Preview: Increasing Number of Potential Changes

The Korea Exchange (KRX) will announce the results of the June 2021 review of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> in May with the changes becoming effective after the close of trading on 10 June.Currently, we see <a href="https://www.smartkarma.com/entities/taihan-electric-wire-co-ltd" target="_blank" data-smartkarma-citation="entities:11551:1" rel="noopener">Taihan Electric Wire (001440 KS)</a> being included in the index and <a href="https://www.smartkarma.com/entities/taeyoung-engineering-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:18740:1" rel="noopener">Taeyoung Engineering &amp; Construction (009410 KS)</a> being deleted, with a few stocks as close adds/ deletes. <a href="https://www.smartkarma.com/entities/taeyoung-engineering-construction-co-ltd" target="_blank" data-smartkarma-citation="entities:18740:1" rel="noopener">Taeyoung Engineering &amp; Construction (009410 KS)</a>'s expected deletion is a result of the demerger of TY Holdings (363280 KS) in September which has significantly lowered its market cap.<a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener">Krafton Inc (1486402D KS)</a>'s estimated market cap of US$26-30bn would see it included in the index as a Fast Entry if it lists before the end of April which would put <a href="https://www.smartkarma.com/entities/sebang-global-battery-co-ltd" target="_blank" data-smartkarma-citation="entities:9618:1" rel="noopener">Sebang Global Battery (004490 KS)</a> at risk of deletion. If Krafton lists by end January/ beginning February (seems unlikely at this point in time), it could be included in the KOSPI 200 in March. If it lists after mid Feb but before end April, Krafton could be included in the index at the June review.<a href="https://www.smartkarma.com/entities/taihan-electric-wire-co-ltd" target="_blank" data-smartkarma-citation="entities:11551:1" rel="noopener">Taihan Electric Wire (001440 KS)</a> has increased in price sharply over the last month and we would wait for the price to stabilize a bit before buying into the stock.

The Korea Exchange (KRX) will announce the results of the June 2021 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in May with the changes becoming effective after the close of trading on 10 June.Currently, we see Taihan Electric Wire (001440 KS) being included in the index and Taeyoung Engineering &amp; Construction (009410 KS) being deleted, with a few stocks as close adds/ deletes. Taeyoung Engineering &amp; Construction (009410 KS)'s expected deletion is a result of the demerger of TY Holdings (363280 KS) in September which has significantly lowered its market cap.Krafton Inc (1486402D KS)'s estimated market cap of US$26-30bn would see it included in the index as a Fast Entry if it lists before the end of April which would put Sebang Global Battery (004490 KS) at risk of deletion. If Krafton lists by end January/ beginning February (seems unlikely at this point in time), it could be included in the KOSPI 200 in March. If it lists after mid Feb but before end April, Krafton could be included in the index at the June review.Taihan Electric Wire (001440 KS) has increased in price sharply over the last month and we would wait for the price to stabilize a bit before buying into the stock.

KOSPI200 Index Rebalance Preview: IPO Fast Entry & End of Short Sell Ban Will Shake Things Up

South Korea

Taihan Electric Wire Co., Ltd. manufactures a wide range of cables and wires, such as power, communications, copper rod, and enameled cables and wires.  The Company also produces stainless steel sheets and aluminum products including coils, sheets, and plates.  In addition, Taihan Electric offers information and communications equipment, such as optical transmission and network systems.

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52-week Range	0.00 - 0.00
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Taihan Electric Wire (001440 KS)

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There could be up to 6 inclusions and 8 exclusions at the KOSPI200 index review in June. The inclusions could outperform the exclusions as short...

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KOSPI 200 June Rebalancing Update: 4 Additions & 4 Deletions

This post updates KOSPI 200 June rebalancing's current status based on November 1~March 10 daily market cap and trading volume.

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We see 4 potential changes to the KOSPI200 index at the June review (up from 1 change in Nov). With the short sell ban expiring on 2 May for...

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KOSPI200 Index Rebalance Preview: IPO Fast Entry & End of Short Sell Ban Will Shake Things Up

We just just one addition and deletion to the KOSPI200 index in the June 2021 review. The end of the short sell ban in March will bring a lot more...

Brian Freitas

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