Indices

Investment
Investment

Growth
Growth

Global
Global

Innovation
Innovation

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NOTICE
All indices of the Korea Exchange are registered and protected under the national and international intellectual property rights.
It should be noted that the use and distribution of KRX indices and KRX trademarks without the proper license is illegal. The
companies wishing to issue financial instruments, of which the underlying assets are KRX indices, have to enter into an index
license agreement with the KRX. Under the license agreement, the KRX grants the licensee the privilege to use the indices
commercially or non-commercially
KRX assumes no responsibility for the accuracy or completeness of the data and disclaims all expressed or implied warranties
in connection therewith.

Overview

Indices

KRX, as an index provider, is currently calculating index family over 133 equity and derivatives indices.
KRX published the first stock price index using price-weighted method on January 4, 1964. In 1983, reflecting the international trends, KRX Stock Market Division introduced a new market capitalization based index, KOSPI, which is still in use
today. Best known for Korean blue chip index KOSPI 200, KRX maintains and calculates various index families which consist
of not only Equity indices but also Thematic, Derivatives, Strategy and Fixed income indices.
KRX will further strengthen its presence in overseas markets by collaborating with S&P DJI.

Index Directory
Equity

KRX Series

Blue-chip KRX 100, KRX sector* indices

* Autos / Semicon / Health Care / Banks / IT / Energy & Chemicals / Steels /
Consumer Staples / Media & Telecom / Financials ex Bank / Constructions /
Securities / Shipbuilding / Insurance / Transportation / Retail / Leisure

KOSPI Series

Blue-chip KOSPI 200, KOSPI 100, KOSPI 50, KOSPI 200 Sector*
Market
KOSPI, KOSPI Large/Mid/SmallCap, KOSPI Industry Group
* Constructions & Machinery / Shipbuilding & Transportation /
Steels & Materials / Energy & Chemicals / IT / Financials / Consumer Staples /
Consumer Discretionary

KOSDAQ Series

Blue-chip KOSDAQ Premier, KOSTAR

Market
KOSDAQ, KOSDAQ Large/Mid/SmallCap, Industry Group

Derivatives

Strategy

KOSDAQ Section(prime / venture / standard / growth)

Thematics

KODI, KRX SRI, KRX SRI Eco, KRX SRI Governance, KRX Green

Global

S&P / KRX Asia 100, S&P / KRX Exchanges

Futures

F-KOSPI 200, F-USDKRW, F-KTB, F-LKTB

Options

V-KOSPI 200, C-KOSPI 200, P-KOSPI 200

Equal Weighted

KRX 100 / KOSPI 200 / KOSPI 100 / KOSPI 50 Equal weighted

Inverse/Leverage

F-KOSPI 200 / F-USDKRW / F-KTB / F-LKTB Inverse, KOSPI 200 Leverage

Risk Control

KOSPI 200 Risk Control 6% / 8% / 10% / 12%

Multi Asset

S&P / KRX Balanced Equity and Gold, KOSPI 200 DAE, KRX Balanced

Smart Beta

KOSPI 200 Low Volatility High Dividend, KOSPI 200 Low Volatility

Fixed income

KRX-Korea Treasury Bond / KRX Bond / KTB Prime Series

Korea Stock Market

KOSPI market

KOSPI Series

Market for leading large-sized businesses

KRX Series

KOSDAQ market
Market for venture, small and medium-sized businesses & IT industry

KOSDAQ Series
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Brief Descriptions
Index Description
KRX 100 consists of the 100 blue chip stocks representing both KOSPI Market and KOSDAQ Market
KRX Sector Indices designed to represent the leading companies in each of 17 sectors covering both KOSPI Market and KOSDAQ Market
KOSPI based on all common stocks on KOSPI Market except preferred / foreign / convertible stocks, mutual funds and warrants
KOSPI 200 consists of the 200 blue chip stocks on KOSPI Market. KOSPI 200 has been used as the underlying index for KOSPI 200
futures and options, which have explosively grown into an internationally sought after investment vehicles, as well as a
benchmark index for ETFs, index funds

KOSPI 100 (50) consists of constituents that rank in the top 100(50) of KOSPI 200 in terms of market capitalization
KOSPI 200 Sector As KOSPI 200 sub-indices are divided by industry sector group, 8 sector indices are calculated
KOSPI LargeCap/ As KOSPI sub-indices grouped by the size of market capitalization, the top 100 stocks are classified as LargeCap, 101 to
MidCap/SmallCap 300 are classified as MidCap, and the rest are classified as SmallCap
KOSPI Industry Group As KOSPI sub-indices divided by industry group, 22 indices are calculated
KOSDAQ Composite market cap weighted index for KOSDAQ Market. KOSDAQ plays an important role both as a general indicator of price
fluctuations in KOSDAQ Market and as a nations economic indicator

KOSDAQ Premier the main investable index on KOSDAQ Market. KOSDAQ consists of the 100 blue chip stocks selected by considering
the market representation, financial soundness and administrative excellence

KOSTAR consists of the 30 blue chip stocks on KOSDAQ Market and has been used as the underlying for KOSTAR futures
KOSDAQ LargeCap/ As KOSDAQ sub-indices grouped by the size of market capitalization, the top 100 stocks are classified as LargeCap, 101 to
MidCap/SmallCap 400 are classified as MidCap, and the rest are classified as SmallCap
KOSDAQ Industry Group As KOSDAQ sub-indices divided by industry group, 34 indices are calculated
KOSDAQ Section consist all stocks on KOSDAQ Section(Prime Business /Venture Business / Standard Business / Growth Business Section)
KODI consists of 50 stocks with highest score for dividend yield, dividend propensity and dividend reliability
KRX SRI consists of 70 stocks selected by considering social & environmental responsibility and corporate governance
KRX SRI Eco consists of 30 stocks selected by considering environmental responsibility which is one of the 3 parts of SRI evaluation
KRX SRI Governance consists of 30 stocks selected by considering corporate governance responsibility which is one of the 3 parts of SRI evaluation
KRX Green consists of 20 stocks that are involved in green industry such as green certified business acquired by Korea government
F-KOSPI 200 the index linked with the price movement of the nearest month contract listed on KOSPI 200 Futures Market
F-USDKRW linked with the price movement of the nearest month contract on the US Dollar Futures Market
F-KTB linked with the price movement of the nearest month contract listed on the 3-years T-bond Futures Market
F-LKTB linked with the price movement of the nearest month contract listed on the 10-years T-bond Futures Market
V-KOSPI 200 represents the future (30-day maturity) volatility of KOSPI 200. V-KOSPI 200 is derived from the ATM (at-the-money) and

OTM (out-of-the- money) prices of the nearest and second nearest month contract of KOSPI 200 Options by the calculating
formula of Fair Variance Swap

KOSPI 200 Leverage

Equal Weighted
F-KOSPI 200 Inverse
F-USDKRW Inverse
F-KTB(LKTB) Inverse
KOSPI 200 Covered Call
KOSPI 200 Protective Put

linked with the double-leveraged (x2) return of KOSPI 200, thus is evaluating the return of KOSPI 200 leverage ETF and funds
designed to give same weight to all constituents in KRX 100, KOSPI 200/100/50 and the market cap are adjusted quarterly
linked with inverse (x-1) return of F-KOSPI 200, thus is evaluating the return of KOSPI 200 Inverse ETF and funds
linked with inverse (x-1) return of F-USDKRW
linked with inverse (x-1) return of F-KTB(F-LKTB)
linked with a synthetic investment strategy that simultaneously buys KOSPI 200 portfolio and sells KOSPI 200 call options
linked with a synthetic investment strategy that simultaneously buys KOSPI 200 portfolio and buys KOSPI 200 put options

S&P/KRX Balanced designed to track the return of an investment strategy that combines two different asset classes, equity and gold. It is
Equity and Gold comprised of a pre-defined weight of equity exposure, as represented by KOSPI 200, and a pre-defined weight of gold
exposure, as represented by S&P GSCI Gold Total Return Index

KOSPI 200 Risk Control Index Series aims to track the return of an investment strategy that applies dynamic exposure to an underlying index in an

attempt to control the level of volatility. The exposure to the underlying index is calculated by dividing the target level of
volatility by the realized volatility of the underlying index and it ranges from 10% to 100%. The target level of volatility is 6%, 8%,
10% or 12% and the realized volatility is determined by the maximum value of the V-KOSPI 200

S&P/KRX Dynamic calculated by KRX and owned jointly by KRX and S&P Dow Jones Indices, is designed to track the return of an investment
Asset Exchange strategy that combines two different asset classes, Korean equity and U.S. 10 year treasury note
KRX Balanced Index designed to track the return of an investment strategy that combines two different asset classes, equity and bond. It is
(MOBIX, COBIX) comprised of a pre-defined weight of equity exposure, as represented by the KOSPI 200, and a pre-defined weight of gold
exposure, as represented by the KRX Korea Treasury Bond Total Return Index

S&P / KRX Asia 100 consists of the 100 stocks that are prominent in 5 Asian countries (Korea, China, Hong Kong, Taiwan and Singapore)
S&P / KRX Exchanges consists of global exchanges that are publicly traded and meet market capitalization and trading value requirements

Indices

Blue-chip Index

KOSPI 200 Series

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Blue-chip Index

Indices

KOSPI 200 Series

In June 1996, KOSPI 200 was introduced to prepare for the launching of the derivatives market, KOSPI 200 futures
and options. KOSPI 200 consists of the 200 blue chip stocks listed on KOSPI market and covers approximately 90%
of the market. Since its development, KOSPI 200 has been used as the underlying index for derivatives and
benchmark for ETFs and Index Funds.
In order to meet customers needs, KRX has developed and published various kinds of indices based on KOSPI 200
such as KOSPI 200 leverage, F-KOSPI 200, KOSPI 200 Low Volatility High Dividend etc. Total number of indices
related to KOSPI 200 reaches 27 and the net asset value of ETFs and Index Funds recorded $ 16 billon in 2013.
KOSPI 200 has played a pivotal role as the premier gauge of equity market performance in South Korea. With the
high liquidity of KOSPI 200 futures and options, KOSPI 200 continues to attract global investors. ETFs that track
KOSPI 200 index are listed globally in a variety of exchanges including HKEX, NYSE, JPX and KRX.

KOSPI 200 Series

KOSPI 200 Sector

Strategy Index

Constructions & Machinery

Shipbuilding & Transportation
Steels & Materials,
Energy & Chemicals
IT / Financials / Consumer Staples
Consumer Discretionary

KOSPI 200 Leverage

KOSPI 200 Equal Weighted
KOSPI 200 Risk Control 6%, 8%, 10%, 12%
KOSPI 200 Low Volatility High Dividend
KOSPI 200 Low Volatility

KOSPI 200

Multi Assets

Derivatives

S&P/KRX Balanced Equity and Gold

KRX Balanced Index(MOBIX, COBIX)
S&P/KRX Dynamic Asset Exchange
KOSPI 200 DAE

Futures F-KOSPI 200, F-KOSPI 200 Inverse

Options V-KOSPI 200
C-KOSPI 200, P-KOSPI 200

Exchange traded Products based on KOSPI 200 series

ETFs listed at Korea Exchange

Derivatives in 2013
KOSPI 200 Futures
Trading vol.
(Daily Average)

KRX(regular trading)
CME Globex
Total

186,252
16,125

202,407

* Ranked 10th out of 244 equity index futures in 2013

KOSPI 200 Options

Trading vol.
(Daily Average)

Call Options
Put Options
Total

1,232,126
1,117,916
2,350,042

* Ranked 2th out of 177 equity index options in 2013

For Global Investors

CME Globex trading of KOSPI 200 Futures has started in

November 16, 2009 and Eurex has listed Daily Futures on
KOSPI 200 Options on its platform in August 30, 2010.

For more details, eng.krx.co.kr

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Blue-chip Index

KOSPI 200 series

Key Statistics
KOSPI 200 Index

January 3, 1990
June 15, 1994
100.00
200
653,414
27

Base Date
Date Introduced
Base Value
Number of Companies
Adjusted Market Capitalization(USD Million)
No. of the KOSPI 200 index series

ETFs and Derivatives based on KOSPI 200

12
KRX(8), NYSE(1), HKEx(2), JPX(1)
15,913
(total trading volume in 2013)
49,970,933
580,460,364

Number of KOSPI 200 ETFs

Exchange
AUM of ETFs and Index Funds(USD Million)
Derivatives
KOSPI 200 Futures
KOSPI 200 Options

(As of Dec. 30, 2013, exchange rate : 1,053.50 KRW/USD)

Chronicle

Blue-chip Index

Indices

KOSPI 200

KOSPI 200 consists of the 200 blue chip stocks listed on KOSPI Market. The constituents are selected on the basis of
such criteria as market capitalization, industry representation and trading value. KOSPI 200 covers approximately 90%
of KOSPI Market. Since its development in June 1994, KOSPI 200 has been used as the underlying index for KOSPI 200
Futures and Options, which have explosively grown into an internationally sought after investment vehicles, as well as a
benchmark index for ETFs, index funds and equity linked securities.
Recently, KOSPI 200 Futures and Options has been globalized and its trading hours been expanded to attract more
foreign investors. For instance, KRX introduced 24-hour trading system for KOSPI 200 Futures and Options in
collaboration with CME Group and Eurex respectively.

Index Methodology
Index Universe

Re-balancing

All common stocks listed on KOSPI Market are eligible

for inclusion in the index. However, preferred shares,
foreign stocks, convertible stocks, warrants, mutual
funds, real estate investment funds, ship investment
funds, administrative issues, issues of disposal sale and
issues that have not been listed for more than one year
shall be excluded.

Regular Re-balancing
The stocks in the index universe are reviewed once a
year to ensure that adequate market capitalization and
liquidity are maintained. The rebalancing reference date
is after the close of the last trading day in April and the
change takes effect on the next trading day after the
2nd Thursday of June (the next trading day after the day
of June contracts of KOSPI 200 Futures and Options).

Criteria for selection of constituents

Special Change

Classification of Industry Sector

Constituent stock is removed when it is judged to be

disqualified as a result of being de-listed, designated as
administrative issue, merged into another company, etc.
Instead, stocks will be selected in ranking order from
replacement list by industry sector chosen beforehand
during regular rebalancing.

The stocks in the index universe are classified into 8

industry sectors. All industries other than manufacturing
industry are classified as the non-manufacturing
industry group.
Industry sectors : Fisheries, Mining, Electricity&Gas,
Construction, Service, Communication, Financial and Manufacturing
The fisheries and mining are excluded because the market
capitalization of the sector is less than 1% of the total market
capitalization.

Index Calculations
KOSPI 200 is calculated using a freefloat adjusted
market capitalization weighted methodology. A base
date is January 3, 1990 with a base index of 100.
A real-time index is calculated every 2 second from 9:01
to 15:00 on trading day.

Market Capitalization & Industry Representation

Constituents from the non-manufacturing industry group
are firstly selected by ranking annual average daily
market capitalization (hereafter referred to as Market
Cap), while ensuring that the accumulated Market Cap
of a stock is at least 70% of the total Market Cap of
each industry sector. And then, the rest of constituents
are chosen from manufacturing industry sector by
ranking of Market Cap.

Index Committee
Index Committee, which is composed of professors,
asset managers, institutional investors, experts from
corporate governance or accounting professions, etc.,
decides on matters relating to the calculation and
management of KOSPI 200.

Market Liquidity
Among the stocks meeting above criteria, the stocks, of
which the ranking of annual average daily trading value
(hereafter referred to as Market Liquidity) is below
85% of each industry sector, are excluded. Instead, the
stocks, of which Market Cap is ranked next and Market
Liquidity is over 85%, are selected.

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Blue-chip Index

KOSPI 200
Index Performance

Portfolio Characteristics
Number of Companies

Returns

200

3 Months

Adjusted Market Capitalization (USD Million)

Average

3,267

Largest

143,873

Smallest

77

Median

844

Top 10 Companies Market Cap share

Annualized Returns

Annualized Risk
(std dev)

46.26%

1.28 %

6 Months

9.07 %

1 year

0.12 %

5 years

12.54 %

10 years

9.65 %

1 year

11.51 %

5 years

18.51 %

10 years

20.19 %

Top 10 Companies by Weight

Company

Market Cap

Index weight

Free Floats

143,873.77

22.02%

0.75

Manufacturing

HyundaiMtr

34,614.87

5.30%

0.70

Manufacturing

POSCO

22,967.75

5.30%

0.85

Manufacturing

NAVER

20,387.73

3.12%

0.90

Services

SK hynix

19,846.52

3.12%

0.80

Manufacturing

ShinhanGroup

19,161.53

2.93%

0.90

Financials

Mobis

18,983.67

2.91%

0.70

Manufacturing

KBFinancialGroup

14,719.68

2.25%

0.95

Financials

KiaMtr

14,030.92

2.15%

0.65

Manufacturing

LGCHEM

13,188.16

2.02%

0.70

Manufacturing

SamsungElec

Industry Group

5 year historical performance

KOSPI 200 Sector Weights

Sector
Manufacturing

Market Cap.(USD Million)

428,561.35

Financials

88,031.99

Services

86,820.95

Communication

26,522.45

Construction

12,922.01

Elec&Gas

10,555.55

(As of Dec. 30, 2013, exchange rate : 1,053.50 KRW/USD)

Derivatives Index

KOSPI 200 Futures series

Indices

F-KOSPI 200
F-KOSPI 200 is the index linked with the price movement of the nearest month contract listed on the KOSPI 200
Futures market and is using as the underlying index for the ETFs.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized Returns

Jan. 2, 2007
Aug. 17, 2009
1,000.00
3 Months

1.26 %

6 Months

9.26 %

1 year

-1.95 %

3 years

-2.15 %

5 years

10.88 %

F-KOSPI 200 Inverse

F-KOSPI 200 Inverse is linked with inverse (x-1) return of F-KOSPI 200, thus is evaluating the return of KOSPI 200
Inverse ETF and funds.

Index Statistics
Base Date

Sep. 16, 2009

Date introduced

Sep. 16, 2009

Base Value
Returns
Annualized Returns

1,085.14
3 Months

-1.05%

6 Months

-8.17%

1 year

2.47%

3 years

0.66%

Trading volume of KOSPI futures and options

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Derivatives Index

KOSPI 200 Options series

V-KOSPI 200
V-KOSPI 200 (KOSPI 200 Volatility Index) represents the future (30-day maturity) volatility of KOSPI 200. V-KOSPI
200 is derived from the ATM and OTM prices of the nearest and second nearest month contract of KOSPI 200
Options by the calculating formula of Fair Variance Swap.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized Returns

Jan. 2, 2003
Apr. 13, 2009
35.57
3 Months

- 16.51 %

6 Months

- 24.96 %

1 year

-19.19 %

3 years

- 6.74 %

5 years

- 23.14 %

C-KOSPI 200
C-KOSPI 200 (KOSPI 200 Covered Call) is linked with a synthetic investment strategy that simultaneously buys
KOSPI 200 portfolio and sells KOSPI 200 call options. When KOSPI 200 drops or gradually rises, excess returns
are expected.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized Returns

Jan. 11, 2007

Oct. 1, 2010
176.26
3 Months

1.78 %

6 Months

7.82 %

1 year

0.57 %

3 years

0.14 %

P-KOSPI 200
P-KOSPI 200 (KOSPI 200 Protective Put) is linked with a synthetic investment strategy that simultaneously buys
KOSPI 200 portfolio and buys KOSPI 200 put options. When KOSPI 200 plunges, loss is limited (excess returns
are expected).

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized Returns

Jan. 11, 2007

Oct. 1, 2010
176.26
3 Months

0.14 %

6 Months

6.42 %

1 year

- 4.33 %

3 years

- 5.62 %

(As of Dec. 30, 2013, exchange rate : 1,053.50 KRW/USD)

10

Strategy Index

Indices

KOSPI 200 Strategy series

KOSPI 200 Low Volatility High Dividend

KOSPI 200 Low Voltility High Dividend index consists of 50 stocks with high dividend and low volatility among
constituents of KOSPI 200 index.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized Returns

Jan. 3, 2005
Nov. 18, 2013
1,000.00
3 Months

- 2.41 %

6 Months

6.12 %

1 year

5.74 %

3 years

0.73 %

5 years

11.77 %

KOSPI 200 Risk Control

KOSPI 200 Risk Control series aims to track the return of an investment strategy that applies dynamic exposure to an underlying index in an attempt to control the level of volatility. The exposure to the underlying index is
calculated by dividing the target level of volatility by the realized volatility of the underlying index and it ranges
from 10% to 100%. The target level of volatility is 6%, 8%, 10% or 12% and the realized volatility is determined
by the maximum value of the V-KOSPI 200.

Index Statistics
Target Level
Base Date
Date introduced
Base Value
Returns
Annualized Returns

6%

8%

10 %

12 %

Jan. 2, 2006
June 25, 2012
1,000.00
3 Months

0.89%

0.93%

1.04%

1.07%

6 Months

4.15%

5.01%

5.97%

6.92%

1 year

1.52%

0.98%

0.50%

0.07%

3 years

3.19%

3.16%

3.12%

3.10%

5 years

1.57%

1.03%

0.43%

-0.22%

5 year Historical Performance

11

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Strategy Index

KOSPI 200 Strategy series

KOSPI 200 Low Volatility
KOSPI 200 Low Volatility index consists of 50 stocks with low volatility among constituents of KOSPI 200 index.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized Returns

Jan. 3, 2005
Nov. 18, 2013
1,000.00
3 Months

2.52%

6 Months

14.88%

1 year

5.32%

3 years

4.65%

5 years

12.27%

KOSPI 200 Leverage

KOSPI 200 Leverage is the index linked with the return double that of the KOSPI 200 index, serving as investment
base index to evaluate the operability of investment instruments such as KOSPI 200 leverage ETF, fund and others.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized Returns

Feb. 22, 2010

Feb. 22, 2010
217.81
3 Months
1.55 %
6 Months

16.43 %

1 year

- 4.15 %

3 years

- 8.50 %

KOSPI 200 Equal Weighted

KOSPI 200 Equal Weighted is designed to give same weight to all constituents in KOSPI 200 and the market cap
are adjusted quarterly.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized Returns

Jan. 2, 2009
May 2, 2011
1,000.00
3 Months

- 1.70 %

6 Months

9.93 %

1 year

5.49 %

3 years

- 0.90 %

5 years

12.50 %

(As of Dec. 30, 2013, exchange rate : 1,053.50 KRW/USD)

12

Strategy Index

KOSPI 200 Multi Assets series

Indices

KRX Balanced Index

KRX Balanced Index is designed to track the return of an investment strategy that combines two different asset
classes,equity and bond. It is comprised of a pre-defined weight of equity exposure, as represented by the KOSPI
200, and a pre-defined weight of bond exposure, as represented by the KRX Korea Treasury Bond Total Return Index.
* MOBIX(equity 70%, bond 30%), COBIX(equity 70%, bond 30%)

Index Statistics
Base Date
Date introduced
Base Value
Returns

Jan. 4, 2010
June 3, 2013
1,000.00
MOBIX

COBIX

2.52 %

0.81 %

6 Months 14.88 %

3.85 %

3 Months

Annualized
Returns

1 year

5.32 %

2.09 %

2 years

4.65 %

4.46 %

3 years 12.27 %

2.99 %

S&P/KRX Balanced Equity and Gold

S&P/KRX Balanced Equity and Gold is designed to track the return of an investment strategy that combines two
different asset classes, equity and gold. It is comprised of a pre-defined weight of equity exposure, as represented
by KOSPI 200, and a pre-defined weight of gold exposure, as represented by S&P GSCI Gold Total Return Index.

Index Statistics
Base Date
Date introduced
Base Value
Returns

Jan. 4, 2000
June 25, 2012
1,000.00
3 Months

- 4.06 %

6 Months

4.74 %

Annualized
Returns

1 year

-14.08 %

3 years

- 2.31 %

Dynamic Asset Exchange

KOSPI 200 DAE and S&P/KRX DAE are designed to track the return of an investment strategy that combines two
different asset classes, KOSPI 200 and 10 year Treasury bond.
* KOSPI 200 DAE(KOSPI 200 & 10 year KTB), S&P/KRX DAE(KOSPI 200 & U.S. 10 year treasury note)

Index Statistics
KOSPI 200 DAE S&P/KRX DAE
Jan. 2, 2013
Jan. 2, 2002
Base Date
Nov. 18, 2013 Nov. 26, 2012
Date introduced
1,000.00
1,000.00
Base Value
Returns
3 Months - 0.16 %
0.22 %

Annualized
Returns

6 Months 3.07 %

3.80 %

1 year - 2.78 %

- 2.45 %

3 years

1.52 %

5 years

9.26 %

13

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Sector Index

KOSPI 200 Sector series

As KOSPI 200 sub-indices are divided by industry sector group, 8 sector indices are calculated.
*Constructions & Machinery, Consumer Discretionary, Consumer Staples, Energy & Chemicals, Financials, IT,
Shipbuilding & Transportation, Steels & Materials

KOSPI 200 Sectors

Index Statistics
Base Date Jan. 2, 2008

Returns
Annualized Returns

Returns
Annualized Returns

Date introduced April 1, 2011

Base Value 1,000.00

Constructions
& Machinery

Consumer
Discretionary

Consumer Shipbuilding &

Staples Transportation

3 Months

- 12.09 %

- 1.86 %

1.80 %

-4.85 %

6 Months

- 0.18 %

5.03 %

7.18 %

18.19 %

1 year

- 26.39 %

5.43 %

4.17 %

- 4.30 %

3 years

- 18.96 %

4.08 %

4.84 %

- 13.55 %

5 years

- 1.41 %

27.77 %

4.30 %

1.72 %

Energy &
Chemicals

Financials

Steels &
Materials

IT

3 Months

- 0.39 %

6.83 %

- 1.13 %

7.40 %

6 Months

15.87 %

15.00 %

13.80 %

12.96 %

1 year

- 8.41 %

11.75 %

- 5.52 %

12.37 %

3 years

-7.16 %

- 6.15 %

- 6.39 %

6.16 %

5 years

14.09 %

7.64 %

9.18 %

18.44 %

5 year Historical Performance

(As of Dec. 30, 2013, exchange rate : 1,053.50 KRW/USD)

14

Indices

KRX 100
KOSDAQ Premier
Derivatives

For more details, eng.krx.co.kr

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Blue-chip Index

Indices

KRX 100

After the establishment of Korea Exchange(KRX) through the market consolidation in 2005, KRX 100 is the first index
that KRX has developed and introduced to reflect the purpose of the market integration.
KRX 100 consists of 100 blue chip stocks from both KOSPI Market and KOSDAQ Market, so it truly represents the stock
market of KRX. The constituents are selected on the basis of such criteria as market capitalization, market liquidity as
well as various financial standards.

Index Methodology
Re-balancing

Index Universe
All common stocks listed on KOSPI Market or KOSDAQ
Market are eligible for inclusion in the index. However,
preferred shares, foreign stocks, convertible stocks,
warrants, mutual funds, real estate investment funds,
ship investment funds, administrative issues, issues of
disposal sale and issues that have not been listed for
more than three years shall be excluded.

Regular Re-balancing
The stocks in the index universe are reviewed annually to
ensure that adequate market capitalization and liquidity
are maintained. The re-balancing reference date is after
the close of the last trading day in April and the change
takes effect on the next trading day after the 2nd
Thursday of June (the next trading day after the day of
June contracts of KOSPI 200 Futures and Options).

Criteria for selection of constituents

Special Change
Classification of Industry Sector
The stocks in the index universe are classified into 26
industry sectors and top two stocks in terms of overall
score in each industry sector are selected firstly. Rest
of the constituents are selected in the order of the
overall score disregarding the industry sectors.

Constituent stock is removed when it is judged to be

disqualified as a result of being de-listed, designated as
an administrative issue, merged into another company
and etc. Instead, stocks will be selected in ranking
order from replacement list by industry sector chosen
beforehand during regular re-balancing.

Top one stock is selected in the industry sector of which the

market capitalization is less than 1% of the total market
capitalization.

Index Calculations
KRX 100 is calculated using a free-float adjusted market
capitalization weighted methodology with 15% cap on
each constituents. The base date is January 2, 2001 with
the base index of 1,000. The index is calculated every 2
seconds on a real time basis from 9:01 to 15:00 of
trading day.

Market Capitalization & Liquidity

Market Capitalization & Market Liquidity of stocks in the
index universe must be within the top 25% and top 20%
respectively.

Financial Soundness & Free-float Rate

Index Committee

Stocks in the universe must have positive ROE(Return

On Equity) figures and more than 15% Free-float Rate.

Index Committee, which is composed of professors,

asset managers, institutional investors, experts from
corporate governance or accounting professions,
decides on matters relating to the calculation and
management of KRX 100.

Score Calculation
Stocks meeting above criteria are scored by Market
Capitalization (60%), ROE (20%) and Reserve
Ratio (20%).

17

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Blue-chip Index

KRX 100
Portfolio Characteristics

Index Performance

Number of Companies
Adjusted Market Capitalization (USD Million)

100

Average

5,384

Largest

69,706

Smallest

109

Median

2,477

Top 10 Companies Market Cap share

46.01%

Returns

3 Months
6 Months
1 year
5 years
10 years
1 year
5 years
10 years

Annualized Returns

Annualized Risk
(std dev)

1.91 %
10.37 %
2.15 %
12.20 %
5.64 %
11.13 %
15.36 %
19.33 %

Top 10 Companies by Weight

Company
SamsungElec

Market Cap

Index weight

Free Floats

69,706.84

12.95%

0.75

Industry Group
Communication Equipment

HyundaiMtr

34,614.88

6.43 %

0.70

Transportation Equipment

POSCO

22,967.75

4.27 %

0.85

Iron & Metal

NAVER

20,387.74

3.79 %

0.90

Software

SK hynix

19,846.53

3.69 %

0.80

IT Part

ShinhanGroup

19,161.53

3.56 %

0.90

Other Financial

Mobis

18,983.67

3.53 %

0.70

Transportation Equipment

KBFinancialGroup

14,719.69

2.73 %

0.95

Other Financial

KiaMtr

14,030.92

2.61 %

0.65

Transportation Equipment

LGCHEM

13,188.17

2.45 %

0.70

Chemicals

5 year historical performance

KRX 100 Sector Weights

(As of Dec. 30, 2013, exchange rate : 1,053.50 KRW/USD)

18

Blue-chip Index

Indices

KOSDAQ Premier

KOSDAQ Premier consists of 100 representative stocks listed on KOSDAQ Market. The constituents are selected on the basis
of such criteria as market capitalization, market liquidity and financial soundness and administrative excellence.
KOSDAQ Premier accounts for approximately 40% of KOSDAQ Market. Comparing with KOSTAR index, to improve the market
representativeness, constituents number is increased from 30 to 100 and to provide more opportunities to invest
into blue chip stocks of KOSDAQ Market, more enhanced financial and managerial standards are applied.

Index Methodology
Index Universe

Re-balancing

All common stocks listed on KOSDAQ Market are eligible

for inclusion in the index. However, preferred shares,
foreign stocks, convertible stocks, warrants, mutual funds,
real estate investment funds, ship investment funds,
administrative issues, issues of disposal sale and issues
that have not been listed for more than six months shall
be excluded.

Regular Re-balancing
The stocks in the index universe are reviewed annually to
ensure that adequate market capitalization and liquidity are
maintained. The rebalancing takes effect on the next
trading day after the 2nd Thursday of June.

Intermediate Change
Intermediate change is applied to reflect changes of the
market and to include newly listed or merged companies
in the index quickly. The change takes effect on the next
trading day after the 2nd Thursday of December.

Criteria for selection of constituents

Market Capitalization
Constituents within the index universe are selected by
ranking 6 months average daily market capitalization
while ensuring below criteria.

Special Change
Constituent stock is removed when it is judged to be
disqualified as a result of being de-listed, designated as
an administrative issue, merged into another company
and etc. Instead, stocks will be selected in ranking order
from replacement list chosen beforehand during regular
re-balancing.

Market Liquidity
Constituents must be within the top 70% stocks in the
average daily value traded for the preceding six months.

Financial Soundness & Free-float Rate

The capital of the stocks must not be impaired and
continuing profit must have been achieved at least
twice in recent three years and ROE (Return On Equity)
and sales are more than 5% and KRW 50 billion
respectively.

Index Calculations
KOSDAQ Premier is calculated using a free-float adjusted
market capitalization weighted methodology with 15% cap
on each constituents. The base date is January 2, 2009 with
the base index of 1,000. The index is calculated every
10 seconds on a real time basis from 9:01 to 15:00 of
trading day.

Administrative Excellence
Stocks have been designated as an insincere
disclosure company or reviewed as a candidate of
delisting companies and changed the biggest
shareholder more than three times over the recent two
years are excluded.

19

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Blue-chip Index

KOSDAQ Premier
Index Performance

Portfolio Characteristics
Number of Companies

Returns

100

Adjusted Market Capitalization (USD Million)

Average

275

Largest

2,748

Smallest

53

Median

179

Top 10 Companies Market Cap share

3 Months

- 5.97 %

6 Months

- 1.79 %

Annualized Returns

1.55 %

5 years

0.22 %

10 years

8.55 %

1 year

18.15 %

5 years

17.02 %

10 years

20.07 %

Annualized Risk
(std dev)

39.32 %

1 year

Top 10 Companies by Weight

Company

Market Cap Index weight Free Floats

Industry Group

Celtrion

2,447.69

8.91 %

0.65

Manufacturing

SSC

1,453.34

5.29 %

0.65

IT H/W

CJOS

1,344.33

4.89 %

0.55

Communication & Broadcasting Service

GSHS

1,339.09

4.88 %

0.70

Communication & Broadcasting Service

Paradise

913.31

3.33 %

0.40

Entertainment & Culture

Daum

864.97

3.15 %

0.80

IT S/W & SVC

S.M.

693.04

2.52 %

0.80

Entertainment & Culture

CJ E&M

672.80

2.45 %

0.60

Communication & Broadcasting Service

Dongsuh

558.12

2.03 %

0.35

Distribution

PARTRON

512.77

1.87 %

0.70

IT H/W

5 year historical performance

Sector Weights

Sector

Market Cap.(USD Million)

Manufacturing

8,430.64

IT H/W
Communication &
Broadcasting Service
IT S/W & SVC

8,133.86

Entertainment & Culture

2,025.66

Distribution

1,220.59

Business Service

3,356.24
3,049.32

533.17

(As of Dec. 30, 2013, exchange rate : 1,053.50 KRW/USD)

20

Derivatives Index

Currency & Fixed income series

Indices

F-USDKRW
F-USDKRW is linked with the price movement of the nearest month contract on the US Dollar Futures Market.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized
Returns

Jan. 2, 2007
Jan. 8, 2010
1,000.00
3 Months

- 2.46 %

6 Months

- 8.64 %

1 year

- 3.38 %

3 years

- 4.15 %

5 years

- 5.39 %

F-KTB
F-KTB index is linked with the price movement of the nearest month contract listed on the 3-years T-bond
Futures Market.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized
Returns

Jan. 2, 2008
July 8, 2011
3 Months

1,000.00
0.07 %

6 Months

0.65 %

1 year

0.57 %

3 years

1.41 %

5 years

1.99 %

F-LKTB
F-LKTB index is linked with the price movement of the nearest month contract listed on the 10-years T-bond
Futures Market.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized
Returns

Jan. 3, 2011
Oct. 24, 2011
1,000.00
3 Months

- 0.88 %

6 Months

- 0.19 %

1 year

- 1.38 %

2 years

1.99 %

3 years

3.81 %

21

For more details, eng.krx.co.kr

index_services@krx.co.kr
+82. 51. 662. 2366

Derivatives Index

Currency & Fixed income series

F-USDKRW Inverse
F-USDKRW Inverse is linked with inverse (x-1) return of F-USDKRW.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized
Returns

April 1, 2011
April 1, 2011
1,220.58
3 Months

3.12 %

6 Months

10.67 %

1 year

5.70 %

2 years

9.14 %

F-KTB Inverse
F-KTB Inverse is linked with inverse (x-1) return of F-KTB Market.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized
Returns

July 18, 2011

July 18, 2011
3 Months

1,440.29
0.58 %

6 Months

0.67 %

1 year

2.13 %

2 years

1.90 %

F-LKTB Inverse
F-LKTB Inverse is linked with inverse (x-1) return of F-LKTB.

Index Statistics
Base Date
Date introduced
Base Value
Returns
Annualized
Returns

Oct. 24, 2011

Oct. 24, 2011
3 Months

1,063.46
1.49 %

6 Months

1.33 %

1 year

3.78 %

2 years

0.72 %

(As of Dec. 30, 2013, exchange rate : 1,053.50 KRW/USD)

22

Indices
KRX INDEX LICENSING
Introduction

License Fee

Since the production and publication of its first stock price

index in 1964, the KRX has been providing various types
of indexes to date. They are often used to develop index
funds, ETFs, ELS or other structured products. Especially,
KOSPI 200, the underlying index of some well-known
derivatives products of the KRX, has been used by many
financial firms to develop index-linked products. Before
developing and distributing the KRX index-linked
products, the financial firms are required to obtain the
index license from the KRX. Along with the growth of KRX
market and improved performance of KRX- listed
companies, the interest in obtaining the KRX index license
has been on the rise.

The total license fee is determined by taking into

consideration the size of financial products based on KRX
indexes and it consists of two parts, i.e., the basic fee and
the variable fee. The type of indexes, type of financial
products developed and listing status etc. are also taken
into the consideration in determining the license fee.

Licensing Policy
To develop, distribute and manage funds or structured
products based on the KRX indexes, it is necessary to
obtain the index license from the KRX, but the index license
is not required to use the KRX indexes as a benchmark.
The KRX does not grant any institution an exclusive right
to use the KRX indexes in any specific region or country.

Types of Indices
The KRX indexes are categorized into four types. They are
Investable Indexes, Global Indexes, Market Indexes and
Customized Indexes. Investable Indexes are such
indexes as KOSPI 200 and KRX 100 which are designed
to be used primarily as the underlying asset of financial
products. Global Indexes are S&P / KRX Exchanges and
Asia 100, which were developed in collaboration with S&P.
Market Indexes are those being used largely as the
indicator of overall performance or movement of the stock
market such as KOSPI and KOSDAQ Composite. The KRX
will continue to provide market and investable indexes to
serve the needs of the financial communities worldwide.

License Privileges
The licensee may use the KRX indexes and KRX
trademarks for the following purposes:
To develop, distribute and trade the financial products
based on the KRX indexes
To market and promote the financial products based on
the KRX indexes

Term of License
The index license is valid for one ( 1 ) year from the date the
agreement is signed and may be renewed for additional year.
In case of not intending to renew the license agreement, the
concerned party is required to inform the other party of its
intention to terminate the agreement at least thirty (30) days
before the expiry date of the agreement.

Termination of Agreement
The license agreement can be terminated in case of the breach
of agreement by either party, licensees election to cease using
the license and the impairment of KRXs ability to license due
to the change in the legislation or regulation. In any of these
cases, the concerned party must notify the other party in
writing in advance.

To contact the KRX and inquire about the Index License

To clarify the KRX Licensing Policies
To nalize the Fee Schedule
To enter into the license Agreement with the KRX
To pay the Basic Fee
To submit the annual report on License Usage
To pay the Variable Fee
Renew
the Agreement

Change
the Fee Schedule

Terminate
the Agreement

Cooperation with Index Providers

The KRX is acting as the exclusive Sales Agent for CSI in
Korea. As a Sales Agent for the CSI, the KRX introduce the CSI
indexes to the potential users in Korea, so that the CSI may
enter into the license agreement with the customer in Korea.
In addition, the KRX cooperates with S&P in developing and
marketing of several indexes.

For more details, eng.krx.co.kr

index_services@krx.co.kr
+82. 51. 662. 2366