South Korea's stock exchange tightens ETF keyword adjustment rules, fund changes in constituent stocks require advance communication.

According to industry sources in the South Korean financial investment industry, the South Korean Exchange recently issued "Guidelines for Adjusting ETF Keywords" to major asset management companies. The core content is that for ETFs that select constituent stocks through specific keywords in the index compilation method, any keyword adjustments must be negotiated with the exchange in advance. The exchange stated: "The index compilation method based on keywords often relies on qualitative judgment rather than quantitative standards." and stated: "We have found some cases where the composition of the index changes frequently." The exchange emphasized: "Changing the keywords used to select constituent stocks may be considered a change in the index calculation standard, and according to current rules, this may trigger delisting conditions." Earlier reports stated that the "TIGER Semiconductor TOP 10" ETF under Future Assets Global Investments changed the index calculation standard before its regular rebalancing to replace constituent stocks, sparking controversy in the industry.