The Korea Exchange noted on the 16th that it has selected five stocks, including KB Financial Group, Hana Financial Group, SK Telecom, KT, and Hyundai Mobis, as constituents of the Korea Value Up Index.
The exchange held a meeting of the Index Operation Committee on the 11th of this month to review special changes to the Korea Value Up Index constituents and decided to incorporate the five stocks.
As of the announcement of the index on Sept. 24, the review was conducted for 43 corporations among the 51 that disclosed plans to enhance corporate value by the 6th of this month.
The newly included stocks will be part of the index starting from the 20th, increasing the total number of constituents to 105. It is set to be readjusted to 100 stocks during the regular constituents change in June next year.
An official from the exchange said, “Due to concerns about increased expense and index volatility associated with the large-scale inclusion of new stocks, it was decided to add them within a limited scope.”
Additionally, the exchange, along with Korea Securities Finance Corporation, Korea Securities Depository, Korea Financial Investment Association, and Korea Information Service, plans to establish a second value-up fund worth 300 billion won. Previously, the exchange set up a first fund worth 200 billion won in early November.
The exchange plans to sign the fund establishment agreement on the 20th of this month, deposit the related organizations' agreement amount of 150 billion won, and execute it. An official from the exchange stated, “The value-up investments of private funds are expected to begin in earnest, starting with the matching amount of 30 billion won, which is anticipated to be executed within this year.”