Korea Exchange Revamp Puts 88.1 Trillion Won of ETFs in Play

Korea Exchange Revamp Changes Index Positions, Not Companies

The investment implications of Mirae Asset Securities’ October 27, 2026 forecast are clear. The Korea Exchange (KRX) industry classification revamp does not change companies’ underlying businesses; it redefines where stocks sit within 63 indices and the 88.1 trillion won in ETFs tracking them. Classification changes will alter the candidates for inclusion and removal during regular rebalancing, but any resulting market-price impact has yet to be confirmed.

According to Yonhap News securities coverage, the Korea Exchange (KRX) announced its stock-level classifications under its proprietary KRICS framework on October 26, 2026. KRICS is the exchange’s four-tier system for categorizing Korean-listed stocks by sector, industry group, industry and sub-industry. It covers 2,559 domestically listed stocks.

The 62.5 Trillion Won That Matters More Than the 63 Indices

While the impact is broad, assets are concentrated in the KOSPI 200. Mirae Asset Securities analyst Yoon Jae-hong said ETFs tracking the KOSPI 200 directly or indirectly hold 62.5 trillion won in assets, accounting for 71% of all affected ETF assets. Including index funds and pension funds, total tracking assets are estimated at 140 trillion to 160 trillion won.

Assets tracking the KOSDAQ 150 total 8.9 trillion won, smaller in absolute terms than those tracking the KOSPI 200. Investors should consider both the amount of assets tracking each index and the stocks expected to be replaced in each market.

How the Korea Exchange’s KRICS Redrew Industry Boundaries

SK and LG moved from industrials to information technology, while Hyundai Motor and Kia were classified under mobility. Samsung Electronics and SK hynix were placed in semiconductors within the information technology sector, while LG Energy Solution was assigned to batteries within industrials. A company’s sector classification determines its eligibility for inclusion in related indices.

ETFs tracking the KOSPI 200 Information Technology Sector Index hold 2.4 trillion won in assets. Mirae Asset Securities expects LG Electronics, classified under consumer goods, and Samsung SDI, classified under industrials, to be removed from the index, with SK and Daeduck Electronics, both reassigned to information technology, added. The case shows how classification criteria, rather than a company’s technology narrative, determine its place in an index.

Expected KOSPI 200 and KOSDAQ 150 Replacements

• KOSPI 200: Mirae Asset Securities expects 10 stocks, including Daeduck Electronics and Iljin Electric, to be added during the December rebalancing, while 11, including Asia Holdings and SeAH Steel Holdings, are expected to be removed. The previous rebalancing added and removed four stocks each.
• KOSDAQ 150: Ten stocks, including FADU and SAMT, are expected to be added, while 10, including INNOX Advanced Materials and Nextin, are expected to be removed.
• Information technology sector: Yoon said most of the expected replacements would occur in the information technology sector. The forecast also highlighted the sector moves by SK and LG and the semiconductor classification of Samsung Electronics and SK hynix.

What Could Expand or Reduce the Replacements

If the proposed classifications remain unchanged, Mirae Asset Securities’ candidates for inclusion and removal in December will serve as a key reference point for investors. The expected number of replacements would also remain higher than at the previous rebalancing. With tracking assets disclosed by index, investors can distinguish which stocks may move within each index.

However, the Korea Exchange (KRX) said the announced industry classifications could be partially adjusted during the market consultation process. Any classification changes would also alter the expected inclusion and removal lists. Final stock-level industry classifications, the stocks affected by the December rebalancing and any post-revamp market-price changes remain unconfirmed.

Three Steps for Investors to Monitor

• After October 30, 2026: Check the final classification information referenced by a Korea Exchange (KRX) official. The starting point is whether any stocks differ from the initial proposal.
• December rebalancing: Compare the final results with the projected 10 additions and 11 removals from the KOSPI 200 and the projected 10 additions and 10 removals from the KOSDAQ 150.
• Sector index composition: Watch whether LG Electronics and Samsung SDI are formally removed from the KOSPI 200 Information Technology Sector Index and SK and Daeduck Electronics are added.
• Separate price from classification: The industry classification changes have been announced, but the available data do not yet indicate a stock-price direction. Investors need confirmation of the final classifications and index composition changes before assessing the price implications.

This article was automatically summarized and analyzed from the original news report. View original article (Yonhap News)