3 companies added to MSCI Korea Index; constituent number unchanged at 81

The logo of Morgan Stanley Capital International / Reuters-Yonhap

Morgan Stanley Capital International (MSCI) has added three new companies, including defense firm LIG Nex1, to its Korea Index, a key gauge of Korea's stock market, the global index provider announced Friday.

The U.S.-based provider of investment research and indices added construction and robotics firm Doosan, LIG Nex1 and electric motor maker Hyosung Heavy Industries while removing the same number of companies from the list, which remains unchanged at 81, according to the company.

Those removed are leading food company CJ Cheiljedang, electric components maker LG Innotek and SKC, a chemical products maker.

The rebalancing will take effect Aug. 26.

MSCI reviews the Korea Index every three months to reflect changes in the market capitalization of underlying securities.

The index is seen as a benchmark of the Korean market, and changes to its constituents can affect the movements of passive funds tracking the index.

Market watchers had expected additions to outnumber exclusions in the August review, considering that the country's stock market has been showing a strong performance compared with its global peers.

In February, the MSCI excluded 11 companies from the list while adding none amid weakness in the local stock market. The index provider added two new companies and took out two others in its May review.