Moving to Change Index Calculation Methodology
Korea Exchange has decided not to apply its market cap ceiling to Samsung Electronics. It announced that it would gather opinions, until April 22, on limiting the application of the 30 percent ceiling to foreign stock price indices in calculating indices such as KOSPI 200.
The ratio of Samsung Electronics’ aggregate market value to the market cap of the KOSPI 200 index increased from 29.8 percent on Dec. 2 last year to 33.5 percent on Jan. 20 this year. Then, in March this year, Korea Exchange began to consider reducing potential market impacts by means of the 30 percent ceiling.
However, Korea Exchange changed its stance in its latest plan to limit the application of the ceiling to foreign indices. It is planning to gather opinions until April 22 and then change its index calculation methodology through committee deliberation.