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Korea Exchange Not to Apply 30 Percent Cap Rule to Samsung Electronics Early
Exclusion of 30 Percent Cap Rule
Korea Exchange Not to Apply 30 Percent Cap Rule to Samsung Electronics Early
  • By Yoon Young-sil
  • February 20, 2020, 08:09
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The Korea Exchange decided not to apply a 30 percent cap rule to the market cap of Samsung Electronics in the KOSPI 200.
The Korea Exchange decided not to apply a 30 percent cap rule to the market cap of Samsung Electronics in the KOSPI 200.

The Korea Exchange today announced on Feb. 19 that it will not apply a 30 percent cap rule to the market cap of Samsung Electronics in the KOSPI 200.

exchange studied a plan to diffuse an impact on the stock market by adjusting the proportion of Samsung Electronics’ market in the market caps of companies in the KOSPI 200 as Samsung Electronics’ entry proportion in the KOSPI 200 increased to 33.5 percent as of Jan. 20 of this year from Dec. 2 of last year.

"We considered a lack of response time for index users when a regular adjustment was scheduled to be made in June," the exchange said. "We decided not to make an early adjustment based on industry feedback."

Therefore, the Korea Exchange will study the application of the cap to the KOSPI 200 index in parallel with the regular change in the KOSPI 200 stocks in June.