Korea Exchange Bans Unauthorized ETF Index Keyword Changes, Threatens Delisting

According to Yonhap InfoMax, the Korea Exchange issued guidelines to major asset managers on July 16, prohibiting them from changing keywords used in ETF index composition without prior consultation. The exchange stated that unauthorized keyword modifications would constitute grounds for listing delisting under current regulations. The move targets a growing industry practice where fund managers adjust index keywords to effectively recompose ETF holdings without formal approval, allowing them to maintain listings while altering investment targets. The exchange emphasized that keyword adjustments constitute index methodology changes subject to delisting provisions, though exceptions may apply if market continuity and index integrity are preserved.
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