South Korea's LS Electric Co. will be added to the Morgan Stanley Capital International (MSCI) Korea Index, MSCI announced on Tuesday.
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.
South Korea's SK IE Technology Co. (SKIET) will be removed.
The rebalancing of the MSCI Korea Index is expected to occur at the close of trading on August 30, which could trigger passive fund flows based on the changes.
The changes will take effect on September 2.
LS Electric is expected to see an inflow of around 148.5 billion won ($108.29 million) in passive funds, while SKIET is projected to face an outflow of 55 billion won.