Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Index Rebalance

SK Square Co., Ltd. operates as an investment company. The Company invests in semiconductors, information and communications technologies, and other industries. SK Square conducts businesses in South Korea.

<ul>
<li>Add delete came in heavier than expected, ETF AUM close to 4tn won, driving meaningful flow impact and sharp reaction given light positioning and low pre visibility.</li>
<li>Beyond adds and deletes, the 15 percent cap reweighting in Samsung Electronics and Hynix adds another meaningful layer of passive flow driven demand and supply pressure.</li>
<li>22 names screen high passive impact, with 7 add delete flags. SK Square stands out with back to back ETF flows, driving two day flow driven distortion into the setup.</li>
</ul>


Add delete came in heavier than expected, ETF AUM close to 4tn won, driving meaningful flow impact and sharp reaction given light positioning and low pre visibility.
Beyond adds and deletes, the 15 percent cap reweighting in Samsung Electronics and Hynix adds another meaningful layer of passive flow driven demand and supply pressure.
22 names screen high passive impact, with 7 add delete flags. SK Square stands out with back to back ETF flows, driving two day flow driven distortion into the setup.


KRX Value Up June Rebal: 22 Names High Passive Impact, SK Square Stands Out

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>KOSPI declined by 2.3% on Monday (11 May), mainly due to concerns about imposing "national dividend" for excess profits from AI/semiconductor related companies in Korea (Samsung Electronics and SK Hynix). </li>
<li>In the near term (1-2 years), it is highly UNLIKELY for the Korean government to suddenly provide national dividends for excess profits from major AI/semiconductor companies in Korea.</li>
<li>However, when the AGI becomes a reality, the idea of providing "national dividend" or by another name Universal Basic Income (UBI) could become a reality in 5-10 years.</li>
</ul>


KOSPI declined by 2.3% on Monday (11 May), mainly due to concerns about imposing "national dividend" for excess profits from AI/semiconductor related companies in Korea (Samsung Electronics and SK Hynix). 
In the near term (1-2 years), it is highly UNLIKELY for the Korean government to suddenly provide national dividends for excess profits from major AI/semiconductor companies in Korea.
However, when the AGI becomes a reality, the idea of providing "national dividend" or by another name Universal Basic Income (UBI) could become a reality in 5-10 years.


"National Dividend" For Excess Profits from Korean Semiconductor Companies? Karl Marx Would Be Proud

<ul>
<li>On 9 January, FSC announced that it will allow Korean securities account opening for IBKR and three other foreign firms including Emperor Securities, TFI, and BancTrust.</li>
<li>FSC announced that overseas traders will be able to access the Korean won on a 24 hours real-time exchange rates basis from July 2026.</li>
<li>KOSPI is up 82% in the past one year and the likelihood of Korea becoming Developed Market status is a key factor driving higher share prices of Korean stocks. </li>
</ul>


On 9 January, FSC announced that it will allow Korean securities account opening for IBKR and three other foreign firms including Emperor Securities, TFI, and BancTrust.
FSC announced that overseas traders will be able to access the Korean won on a 24 hours real-time exchange rates basis from July 2026.
KOSPI is up 82% in the past one year and the likelihood of Korea becoming Developed Market status is a key factor driving higher share prices of Korean stocks. 


FSC Allows Korean Securities Trading Account Opening For IBKR and 3 Other Foreign Firms

Equity Bottom-Up

SAMSUNG KODEX KOREA Value-Up ETF / Equity Bottom-Up

SAMSUNG KODEX KOREA Value-up ETF is an exchange-traded fund incorporated in South Korea. The objective of the fund is to achieve return that closely replicates the performance of KOREA Value-up Index. The fund invest more than 60 % in equity.

SAMSUNG KODEX KOREA Value-Up ETF (495850 KS)

<ul>
<li><em><strong>In this insight, I discuss a pair trade between KODEX Korea Value Up ETF (495850 KS) (long) and KODEX KOSPI ETF (226490 KS) (short).</strong></em></li>
<li>Key investment thesis of this trade is that regardless of the market direction in the next 6-12 months, the Korea Value Up index is likely to outperform the KOSPI index.</li>
<li>KODEX Korea Value Up ETF (495850 KS) is up 193% in the past one year, outperforming KODEX KOSPI ETF (226490 KS) which is up 154% in the same period.</li>
</ul>


In this insight, I discuss a pair trade between KODEX Korea Value Up ETF (495850 KS) (long) and KODEX KOSPI ETF (226490 KS) (short).
Key investment thesis of this trade is that regardless of the market direction in the next 6-12 months, the Korea Value Up index is likely to outperform the KOSPI index.
KODEX Korea Value Up ETF (495850 KS) is up 193% in the past one year, outperforming KODEX KOSPI ETF (226490 KS) which is up 154% in the same period.


A Pair Trade Between KODEX Korea Value Up ETF (Long) And KODEX KOSPI ETF (Short)

SAMSUNG KODEX KOREA Value-Up ETF / Index Rebalance

<ul>
<li>There has been a sharp increase in AUM of ETFs tracking the Korea Value-Up Index in 2026. </li>
<li>Net assets of the 13 Korea Value-Up ETFs totaled 3.1 trillion won as of 17 April 2026, up 143% YTD (up from 1.26 trillion won as of 2 January 2026).</li>
<li>Korea Value-Up Index closed at 2,826.61 on 17 April 2026, up 53% from 2 January 2026, outperforming KOSPI and KOSPI200 (up 44.3% and 49.9%, respectively in the same period). </li>
</ul>


There has been a sharp increase in AUM of ETFs tracking the Korea Value-Up Index in 2026. 
Net assets of the 13 Korea Value-Up ETFs totaled 3.1 trillion won as of 17 April 2026, up 143% YTD (up from 1.26 trillion won as of 2 January 2026).
Korea Value-Up Index closed at 2,826.61 on 17 April 2026, up 53% from 2 January 2026, outperforming KOSPI and KOSPI200 (up 44.3% and 49.9%, respectively in the same period). 


A Sharp Increase in the AUM of ETFs Tracking the Korea Value-Up Index in 2026

Impact of reforms on South Korea Companies

South Korea Value-Up
Impact of reforms on South Korea Companies

KRX Value Up June Rebal: 22 Names High Passive Impact, SK Square Stands Out

KRX Value Up June rebalance screens 22 names for outsized passive impact with SK Square standing out on flow sensitivity and setup.

Sanghyun Park

"National Dividend" For Excess Profits from Korean Semiconductor Companies? Karl Marx Would Be Proud

In the near term (1-2 years), it is highly UNLIKELY for the Korean government to suddenly provide national dividends for excess profits from major...

Douglas Kim

FSC Allows Korean Securities Trading Account Opening For IBKR and 3 Other Foreign Firms

IBKR started to allow trading of Korean stocks starting last week, although IBKR has yet to issue a formal press release. I don't know how many...

Douglas Kim

A Pair Trade Between KODEX Korea Value Up ETF (Long) And KODEX KOSPI ETF (Short)

In this insight, I discuss a pair trade between KODEX Korea Value Up ETF (495850 KS) (long) and KODEX KOSPI ETF (226490 KS) (short).

Douglas Kim

A Sharp Increase in the AUM of ETFs Tracking the Korea Value-Up Index in 2026

Net assets of the 13 Korea Value-Up ETFs totaled 3.1 trillion won as of 17 April 2026, up 143% YTD (up from 1.26 trillion won as of 2 January 2026).

Douglas Kim