Daily Brief South Korea: Samsung KODEX Semicon ETF, The Pinkfong Company, Industrial Bank Of Korea and more

In today’s briefing:

Clarifying the Universe for Key Korean Index Rebalancings in September
Initial Thoughts on The Pinkfong Company IPO (Creator of the Baby Shark Brand)
Industrial Bank Of Korea (024110 KS) Vs. Woori Financial (316140 KS): Pair Trade Signal

Clarifying the Universe for Key Korean Index Rebalancings in September

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.

In this insight, we provide our initial thoughts on The Pinkfong Company IPO which is expected to be completed in KOSPI in 2H 2025.
The Pinkfong Company is the creator of the Baby Shark brand. Its original “Baby Shark Dance” is the most viewed Youtube video ever (15.9 billion views as of May 2025).
The Pinkfong Company’s valuation was more than 1 trillion won in 2021 (Series B investment round).

The Industrial Bank Of Korea (024110 KS)/ Woori Financial Group (316140 KS) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
The relative value opportunity can be implemented through stocks, derivatives, or as relative over-/underweights in a long only context.
This Insight discusses trade setup, statistical properties, factor exposure, and risk management strategies.

💡 Before it’s here, it’s on Smartkarma

The Smartkarma Preview Pass is your entry to the Independent Investment Research Network