[Edaily Reporter Shin Ha-yeon ] LG Innotek(011070)LG Innotek is surging by over 16% in early trading on expectations of its inclusion in the Morgan Stanley Capital International (MSCI) Korea Index.

According to MP Doctor on the 5th, as of 9:14 a.m., LG Innotek is trading at 610,000 won, up 16.19% from the previous trading day. During the session, the stock rose as high as 622,000 won, an 18.48% increase from the previous close.

This surge is believed to be driven by expectations of passive fund inflows following a potential inclusion in the MSCI index ahead of the announcement of its August regular review. MSCI is set to announce the results of its August review on the 12th (local time), with the results scheduled to be released on the morning of the 13th (Korean time). The changes will be reflected in the index starting September 1.

The securities industry is singling out LG Innotek as the most likely candidate for inclusion in this review. Kim Dong-young, an analyst at SamsungSecurities, noted, “Since both its market capitalization and free-float market capitalization significantly exceed the inclusion criteria, its inclusion is virtually certain.”

Kang Song-cheol, an analyst at EUGENE INVESTMENT & SECURITIES, also predicted that LG Innotek would be newly included in the MSCI Korea Index, estimating that its inclusion would generate approximately 430 billion won in passive buying demand from foreign investors.