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.

Event-Driven

<ul>
<li>Structural foreign-cap tightness blocks ADR issuance, disabling arb and making KT’s ADR premium sticky and persistently elevated, especially in high-vol premium expansion phases.</li>
<li>KT’s ADR premium ranged ~0–10% this year, trending higher when local shares sold off, then reversing lower as onshore prices turned up into year-end.</li>
<li>KT’s gradual treasury burn tied to foreign flows may distort onshore trading and cap upside, while ADR premiums stay structurally pinned, creating a clear window for underlying/ADR trades.</li>
</ul>


Structural foreign-cap tightness blocks ADR issuance, disabling arb and making KT’s ADR premium sticky and persistently elevated, especially in high-vol premium expansion phases.
KT’s ADR premium ranged ~0–10% this year, trending higher when local shares sold off, then reversing lower as onshore prices turned up into year-end.
KT’s gradual treasury burn tied to foreign flows may distort onshore trading and cap upside, while ADR premiums stay structurally pinned, creating a clear window for underlying/ADR trades.


KT Treasury Burn: Flow Distortion & Sticky ADR Premium Trade Angle

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we discuss a pair trade between Coupang (CPNG US) (short) and CJ Logistics (000120 KS) (long).</li>
<li>There are six major factors that have negatively impacted Coupang in the past several weeks including a massive data breach, loss of customers, and potential ban on early dawn deliveries. </li>
<li>Coupang's daily active users (DAU) were 16.2 million as of 5 December, down by 1.8 million (10%)  from 18 million as of 1 December. </li>
</ul>


In this insight, we discuss a pair trade between Coupang (CPNG US) (short) and CJ Logistics (000120 KS) (long).
There are six major factors that have negatively impacted Coupang in the past several weeks including a massive data breach, loss of customers, and potential ban on early dawn deliveries. 
Coupang's daily active users (DAU) were 16.2 million as of 5 December, down by 1.8 million (10%)  from 18 million as of 1 December. 


A Pair Trade Between Coupang (Short) And CJ Logistics (Long)

<ul>
<li>Major major local media including Maekyung Business Daily and Chosun Daily have reported that LS Cable &amp; System is pushing forward with an EB worth 400 billion won. </li>
<li>The target stock to be used in the EB is LS Cable's shares in its subsidiary LS Marine Solution. </li>
<li>LS Marine Solution is one of the largest marine engineering companies in Korea, specializing in the installation and maintenance of submarine cables, offshore wind infrastructure, and marine energy systems.</li>
</ul>


Major major local media including Maekyung Business Daily and Chosun Daily have reported that LS Cable &amp; System is pushing forward with an EB worth 400 billion won. 
The target stock to be used in the EB is LS Cable's shares in its subsidiary LS Marine Solution. 
LS Marine Solution is one of the largest marine engineering companies in Korea, specializing in the installation and maintenance of submarine cables, offshore wind infrastructure, and marine energy systems.


LS Cable - To Issue an EB Worth 400 Billion Won Using LS Marine Solution as Base Asset?

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyzed the changes in short interest of KRX stocks as of Sep 12th. The aggregated short interest was USD11.2bn.</li>
<li>We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.</li>
<li>We highlight short interest changes in Doosan Fuel Cell, HMM, Samsung Electronics, Hyundai Motor, SK Hynix.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Sep 12th. The aggregated short interest was USD11.2bn.
We tabulate league tables for top short by value and short as multiple of ADT, as well as weekly increases &amp; decreases in short value, short as multiple of ADT.
We highlight short interest changes in Doosan Fuel Cell, HMM, Samsung Electronics, Hyundai Motor, SK Hynix.


KRX Short Interest Weekly (Sep 12th): Doosan Fuel Cell, HMM, Samsung Electronics, Hyundai Motor

<ul>
<li>SKT’s foreign stake drop sparked early divergence vs KT—long SKT/short KT paying off, though KT’s hacking risk muddies how much is pure event-driven.</li>
<li>This isn’t an add/delete, just a weight bump—flows lag until announcement. Aug ’20 SKT doubling factor is the cleanest comp for today’s setup.</li>
<li>SKT vs KT spread widened post-screening; SKT outperformed 12%. Weight bumps lag vs ins/outs, so expect similar flow—timing long-short entry matters to avoid bleeding carry.</li>
</ul>


SKT’s foreign stake drop sparked early divergence vs KT—long SKT/short KT paying off, though KT’s hacking risk muddies how much is pure event-driven.
This isn’t an add/delete, just a weight bump—flows lag until announcement. Aug ’20 SKT doubling factor is the cleanest comp for today’s setup.
SKT vs KT spread widened post-screening; SKT outperformed 12%. Weight bumps lag vs ins/outs, so expect similar flow—timing long-short entry matters to avoid bleeding carry.


Key Findings on When to Enter Long-Short in the SKT Foreign Room Trade

South Korea

KT Corporation provides telecommunication services including local, long distance, and international calling, satellite communication, data transmission, and wireless telephone services in South Korea.  The Company also offers network portal and high-speed Internet access services using asymmetric digital subscriber lines (ADSLs).

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

KT Corp (030200 KS)

KT Treasury Burn: Flow Distortion & Sticky ADR Premium Trade Angle

This post looks at mandatory treasury burns from a KT underlying/ADR trade perspective, highlighting flow distortions, foreign cap constraints, and...

Sanghyun Park

A Pair Trade Between Coupang (Short) And CJ Logistics (Long)

We discuss a pair trade between Coupang (short) and CJ Logistics (long). Coupang's daily active users were 16.2 million as of 5 December, down by...

Douglas Kim

LS Cable - To Issue an EB Worth 400 Billion Won Using LS Marine Solution as Base Asset?

On 27 October, LS Cable announced it will issue an EB worth 200 billion won which will be convertible into 7.74 million shares of LS Marine...

Douglas Kim

KRX Short Interest Weekly (Sep 12th): Doosan Fuel Cell, HMM, Samsung Electronics, Hyundai Motor

We analyzed KRX short interest report for the past week and highlighted short interest changes in Doosan Fuel Cell, HMM, Samsung Electronics,...

Ke Yan, CFA, FRM

Key Findings on When to Enter Long-Short in the SKT Foreign Room Trade

This post highlights the key findings on the timing for entering long-short positions in the SKT Foreign Room trade, based on historical patterns...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)