Hyundai E&C and Samsung Epis Holdings Newly Added to MSCI Korea Index

February Regular Review Adjusts Korea Index Constituents
Exclusion of Coway, Doosan Bobcat, and LG Household & Health Care

Hyundai Engineering & Construction and Samsung Epis Holdings have been newly added to the Morgan Stanley Capital International (MSCI) Korea Index constituents. In contrast, Coway, Doosan Bobcat, and LG Household & Health Care have been removed.

Global index provider MSCI announced on the 10th (local time) the results of its February regular review and adjusted the Korea Index constituents accordingly. The index rebalancing (readjustment) will take place after the market closes on the 27th.

With this adjustment, the number of constituents in the MSCI Korea Index has decreased by one, from 82 to 81. MSCI conducts regular reviews every February, May, August, and November, adjusting index constituents based on total market capitalization and free-float market capitalization. In November last year, HD Hyundai Marine Solution and APR were added, while Orion was removed.

Ahead of this February review, the market had largely expected 2 to 3 stocks to be added and 2 to 4 stocks to be removed. In a report published last month, Kim Dongyoung, a researcher at Samsung Securities, stated that "as the KOSPI surged, shifts in favored investment themes appeared rapidly, and as a result, the list of potential additions and deletions has shown unusually high volatility compared to previous years." He projected the inclusion of 2 stocks, including Hyundai Engineering & Construction, and the exclusion of 3 stocks, including LG Household & Health Care.

The MSCI index is one of the most influential global indices in the world and serves as a benchmark index for global investors. When a stock is included in the index, global passive funds that track this index flow into it. However, when a stock is removed, capital outflows can occur.

This content was produced with the assistance of AI translation services.