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To make easy the comparison between the Korea Standard Industrial Classification (KSIC) and Global Industry Classification Standard (GICS), the Korea Exchange (KRX) plans to make available the GICS industry code of listed company along with the existing KSIC industry code from July 1, 2010. The details to be published on the KRX Webpage include the name and code of the GICS sector and industry group and the market data such as the price and trading volume of the listed company.
According to the existing KSIC, over 50 % of listed companies are classified as manufacturing industry. However, when the GICS is adopted, there would be no distinction between the manufacturing and non-manufacturing industries and the relative importance would be given to utilization aspect. Hence, the five sectors – the materials, industrials, consumer discretionary, financials, and information technology – would account for about 84% of total market capitalization and 87% of total number of the listed companies.
It is expected that the adoption of GICS would enhance the market infrastructure and help the investors to better understand the characteristics and change of industry structure. Additionally, the financial sector would be able to more efficiently manage their portfolios, including the analysis of investments and asset allocation, and then the ground necessary for the development of various financial investment products based on GICS would be established.
