SK Biopharmaceuticals and SK Global Chemical are likely to be included on the MSCI Korea Index next month, market watchers said Thursday. But Big Hit, the local entertainment agency behind K-pop sensation BTS, is seen as unlikely to make the cut.

The Geneva-based MSCI is set to announce the results of its semiannual index review Nov. 11.

Other South Korean companies, including Hanmi Science, Doosan Heavy Industries & Construction and Genexine, could also join the index, while Posco International, Korea Gas Corporation, BNK Financial Group, Ottogi and Lotte Corp. are likely to be removed, they said.

The equity index is one of the benchmarks most widely used by foreigners investing in the stock market.

The key standards for inclusion and weighting are a firm’s market value and the proportion of that value that is publicly traded on the stock market.

A company with a bigger market capitalization has a greater chance of be added to the index, but a firm with reduced market cap could be eliminated.

Big Hit Entertainment, which had one of Korea’s biggest IPOs this year, as did SK Biopharmaceuticals, is less likely to place its name on the list next month, but may do so in February, according to analysts.

The K-pop agency might need more time before it sees the value of its outstanding shares increase, they added.

The firm’s stock closed at 258,000 won on its first day of trading on the Kospi, but it fell to 157,000 won per share at Thursday’s closing bell.

By Jie Ye-eun (yeeun@heraldcorp.com)