South Korea’s Hyundai Rotem won a spot in the closely watched MSCI Korea Index, while seven companies including two construction giants and the nation’s leading telecom operator face removal in the latest quarterly rebalancing.
The changes, set to take effect November 26, mark a significant reduction in the index membership, bringing the total number of constituents to 92. The reshuffle highlights the shifting landscape of South Korea’s equity market, with traditional industrial and telecom players losing ground.
Among the companies getting cut are Hyundai Engineering & Construction and Hyundai Steel, both part of the powerful Hyundai conglomerate, along with KT Corp., the country’s second-largest telecommunications provider. Celltrion Pharm, Cosmo Advanced Materials, Hanwha Solutions, and Kumyang will also exit the benchmark.
The MSCI Korea Index serves as a key benchmark for international investors and often triggers portfolio adjustments by passive funds tracking the gauge. The quarterly review by MSCI considers factors including market capitalization and free float.
