MSCI Korea Index adds Alteogen, Enchem, HD Hyundai Electric

South Korea's Alteogen Inc., Enchem Co., and HD Hyundai Electric Co. will be added to the Morgan Stanley Capital International (MSCI) Korea Index.

MSCI, a global stock index provider, announced on Wednesday that Alteogen Inc., Enchem Co., and HD Hyundai Electric Co. will join the MSCI Korea Index on May 13.

Hanon Systems Corp., Kakao Pay Corp., Kangwon Land Inc., and Samsung Securities Co. will be dropped.

MSCI Inc. rebalances MSCI indexes, including the MSCI Korea Index, in February, May, August, and November every year by adding new members or removing existing ones based on both full and float-adjusted market capitalization.

The MSCI Korea Index is closely followed by foreign institutional investors investing in South Korean stocks through index-tracking passive funds.

Inclusion in the index tends to increase foreign buying, leading to a rise in share prices.

South Korea's Samsung Securities forecast that Alteogen could see inflows of around 180 billion won ($133 million), HD Hyundai Electric about 140 billion won, and Enchem around 85 billion won.

Write to Jin-Gyu Maeng at maeng@hankyung.com