In today’s briefing:
- KOSPI Size Indices – The Outperformance Continues
- A 140% Increase in Share Cancellations by Korean Companies from 2021 to 2023
KOSPI Size Indices – The Outperformance Continues
- The review period for the March rebalance of the KOSPI Size Indices started 1 December and will end 29 February. The changes will be implemented at the close 14 March.
- We currently see 3 migrations from MidCap to LargeCap, 3 new adds to LargeCap, 6 migrations from LargeCap to MidCap, and 11 migrations from SmallCap to MidCap.
- Historically, stocks migrating from SmallCap to MidCap have outperformed stocks that are migrating between other categories.
A 140% Increase in Share Cancellations by Korean Companies from 2021 to 2023
- The total amount of share cancellations by Korean companies increased sharply in the past three years. Share cancellations of 6.1 trillion won in 2023 represented a 140% increase from 2021.
- Although the total amount of share cancellations of 6.1 trillion won in 2023 seems fairly large, this represented only 0.24% of total market caps of Korean companies.
- We also provide a list of seven Korean companies that have been targeted by activist investors to cancel more shares and improve corporate governance.
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