Exchange Introduces Its Own Industry Classification System... To Be Announced on the 26th of Next Month

The Korea Exchange has introduced its own industry classification system, KRICS.

According to the Exchange on September 22, KRICS was established to effectively manage the classification and positioning of listed companies by industry, tailored to the Korean industrial environment, and to meet the growing demand for the development of various indices.

The Exchange has established the 'KRX Industry Classification Methodology' and plans to publish the results of the industry classification on the KRX index website starting October 26. The published information will include the results of the stage 1 and 2 KRICS industry classifications for KRX-listed stocks, as well as market data such as prices and trading volumes. If a listed company or an index user believes that a change in industry classification is needed, they can request a review for reclassification. In this way, the Exchange intends to continuously monitor the adequacy of classifications going forward.

In 2024, the Exchange prepared a draft classification system through external research services and subsequently refined it through continuous improvements and the collection of feedback. The final classification system consists of a four-level hierarchy with nine sectors at the top, followed by industry group, industry, and sub-industry. Taking into account the structure of the Korean stock market, a special market-focused classification was established, separately categorizing key industries such as mobility (stage 1), shipbuilding and vessels (stage 3), and batteries (stage 3).

The Exchange stated, "KRX industry classification will be applied to benchmark indices such as KOSPI 200 and KOSDAQ 150 in the second half of the year, and we plan to gradually expand its application to more indices."

This content was produced with the assistance of AI translation services.