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

Samsung Electronics Pref Shares / Event-Driven

Samsung Electronics Pref Shares (005935 KS)

<ul>
<li>Labor standoff and strike risk push ADR onto the table. Preferred-share ADR avoids dilution, taps US income demand, and strengthens leverage vs union without ceding Samsung Group control.</li>
<li>ADR isn’t only union-driven; CAPEX seen undersized for AI vs SK Hynix. Larger fab spend likely forces US market access; governance tradeoffs increasingly repriced and acceptable.</li>
<li>Samsung likely waits to see SK Hynix ADR execution; 2H call unlikely. But preferred-ADR narrative may leak gradually, supporting FCF-driven preferred outperformance into year end.</li>
</ul>


Labor standoff and strike risk push ADR onto the table. Preferred-share ADR avoids dilution, taps US income demand, and strengthens leverage vs union without ceding Samsung Group control.
ADR isn’t only union-driven; CAPEX seen undersized for AI vs SK Hynix. Larger fab spend likely forces US market access; governance tradeoffs increasingly repriced and acceptable.
Samsung likely waits to see SK Hynix ADR execution; 2H call unlikely. But preferred-ADR narrative may leak gradually, supporting FCF-driven preferred outperformance into year end.


Samsung Electronics: Rising Narrative Around a Preferred-Only ADR Structure

Chief Executive Officer, Emmer Capital Partners Limited

Manishi Raychaudhuri

Chief Executive Officer

Emmer Capital Partners Limited

Emmer Capital Partners is an Asia Pacific focused financial advisory firm engaging in strategic financial asset allocation advice, bespoke thematic research and advising early-stage companies and connecting them to investors. Emmer Capital provides macro-economic and multi-asset investment strategy inputs to institutions, family offices, private wealth managers, private equity, and corporate boards directly and through independent research platforms. Emmer Capital also advises a wide range of startup companies on fund raising and business strategy. Emmer Capital's active engagement with the print and electronic media reaches a broad spectrum of investors across the globe.

Cross Asset Strategy

<ul>
<li>Anecdotally, fund flows from foreign institutions are important drivers for Asian equity markets. But considering annual FII flows into Asian markets, and their performance tells a different story.</li>
<li>Taiwan and Korea's performances are the most uncorrelated with foreign flows. India's is the most correlated, despite the sharp spike in India's domestic flows. Thailand and Philippines are reasonably correlated.</li>
<li>Considering fundamentals (earnings growth forecasts and direction of estimates) and the extent of overbuying/overselling in a market, we think Korea, Taiwan should see buying. India, Indonesia, Philippines could be sold.</li>
</ul>


Anecdotally, fund flows from foreign institutions are important drivers for Asian equity markets. But considering annual FII flows into Asian markets, and their performance tells a different story.
Taiwan and Korea's performances are the most uncorrelated with foreign flows. India's is the most correlated, despite the sharp spike in India's domestic flows. Thailand and Philippines are reasonably correlated.
Considering fundamentals (earnings growth forecasts and direction of estimates) and the extent of overbuying/overselling in a market, we think Korea, Taiwan should see buying. India, Indonesia, Philippines could be sold.


Asian Equities: How Critical Are FII Flows for Asia, and in Which Markets Are They Likely to Revive?

Technology / Semiconductor / Internet Research

Nicolas Baratte

Thematic (Sector/Industry)

<ul>
<li>Import tariff into the US: Korea 25%, Taiwan 32%. But the White house clarified: no Reciprocal Tariff on semiconductors.  </li>
<li>There are other exemption (pharmaceuticals, lumber, certain minerals not available in the US). But then Apple or Nvidia don’t import Semis from Taiwan or Korea. </li>
<li>They import iPhones from China / India or Servers made in Taiwan. Is it a little bug to be fixed? There’s an interesting loophole: 10% tariff on Singapore.  </li>
</ul>


Import tariff into the US: Korea 25%, Taiwan 32%. But the White house clarified: no Reciprocal Tariff on semiconductors.  
There are other exemption (pharmaceuticals, lumber, certain minerals not available in the US). But then Apple or Nvidia don’t import Semis from Taiwan or Korea. 
They import iPhones from China / India or Servers made in Taiwan. Is it a little bug to be fixed? There’s an interesting loophole: 10% tariff on Singapore.  


No Tariffs on Semiconductors – but Does It Matter?

Semiconductors, Memory and SSDs Specialist, Objective Analysis

Jim Handy

Semiconductors, Memory and SSDs Specialist

Objective Analysis

Objective Analysis offers third-party independent market research and data for the semiconductor industry and investors in the semiconductor industry.

Semiconductors, Memory and SSDs

<ul>
<li>Hyperscaler CapEx could be slowing down, based on 4Q24 spending</li>
<li>Microsoft made a significant cut in Q4, but Amazon, Facebook, and Alibaba all made big increases</li>
<li>Industry CapEx as a percent of revenue has slowed its growth</li>
</ul>


Hyperscaler CapEx could be slowing down, based on 4Q24 spending
Microsoft made a significant cut in Q4, but Amazon, Facebook, and Alibaba all made big increases
Industry CapEx as a percent of revenue has slowed its growth


Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Index Rebalance

<ul>
<li><em><strong>On 10 September, Mirae Asset's Global X Japan launched Japan's first exchange-traded fund called Global X Korea Semiconductor TOP10 ETF focusing directly on South Korean semiconductor companies. </strong></em></li>
<li>This ETF tracks the yen-denominated index of the 'FnGuide Semiconductor TOP10 Index,' which comprises ten South Korean semiconductor firms.</li>
<li>Given strong demand for Samsung Electronics and SK Hynix along with the need to enhance diversification, this Global X Korea Semiconductor TOP10 ETF could gain much higher demand in Japan. </li>
</ul>


On 10 September, Mirae Asset's Global X Japan launched Japan's first exchange-traded fund called Global X Korea Semiconductor TOP10 ETF focusing directly on South Korean semiconductor companies. 
This ETF tracks the yen-denominated index of the 'FnGuide Semiconductor TOP10 Index,' which comprises ten South Korean semiconductor firms.
Given strong demand for Samsung Electronics and SK Hynix along with the need to enhance diversification, this Global X Korea Semiconductor TOP10 ETF could gain much higher demand in Japan. 


Launch of Global X Korea Semiconductor TOP10 ETF in Japan by Mirae Asset

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

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Samsung Electronics (005930 KS)

Samsung Electronics: Rising Narrative Around a Preferred-Only ADR Structure

Samsung is more likely to use treasury shares for ADR issuance. Key internal hurdle was SEC disclosure around inter divisional flows, but with...

Sanghyun Park

Asian Equities: How Critical Are FII Flows for Asia, and in Which Markets Are They Likely to Revive?

Foreign fund flows are not the main drivers of several Asian markets. TW & KR show the least correlation & India the most. KR & TW could see near...

Manishi Raychaudhuri

No Tariffs on Semiconductors – but Does It Matter?

US import tariffs on Korea and Taiwan are high, but no reciprocal tariff on semiconductors. Apple and Nvidia don't import semis from these...

Nicolas Baratte

IS AI Spending Poised to Fall?

Hyperscaler CapEx growth may be slowing as Microsoft cuts spending in Q4 while Amazon, Facebook, and Alibaba increase theirs, leading to a...

Jim Handy

Launch of Global X Korea Semiconductor TOP10 ETF in Japan by Mirae Asset

On 10 September, Mirae Asset's Global X Japan launched Japan's first exchange-traded fund called Global X Korea Semiconductor TOP10 ETF focusing...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Samsung Electronics: Rising Narrative Around a Preferred-Only ADR Structure

Samsung is more likely to use treasury shares for ADR issuance. Key internal hurdle was SEC disclosure around inter divisional flows, but with...

Sanghyun Park

Asian Equities: How Critical Are FII Flows for Asia, and in Which Markets Are They Likely to Revive?

​Foreign fund flows are not the main drivers of several Asian markets. TW & KR show the least correlation & India the most. KR & TW could see near...

Manishi Raychaudhuri

No Tariffs on Semiconductors – but Does It Matter?

​US import tariffs on Korea and Taiwan are high, but no reciprocal tariff on semiconductors. Apple and Nvidia don't import semis from these...

Nicolas Baratte

IS AI Spending Poised to Fall?

​Hyperscaler CapEx growth may be slowing as Microsoft cuts spending in Q4 while Amazon, Facebook, and Alibaba increase theirs, leading to a...

Jim Handy

Launch of Global X Korea Semiconductor TOP10 ETF in Japan by Mirae Asset

On 10 September, Mirae Asset's Global X Japan launched Japan's first exchange-traded fund called Global X Korea Semiconductor TOP10 ETF focusing...

Douglas Kim

Foreign fund flows are not the main drivers of several Asian markets. TW & KR show the least correlation & India the most. KR & TW could see near...

US import tariffs on Korea and Taiwan are high, but no reciprocal tariff on semiconductors. Apple and Nvidia don't import semis from these...

Hyperscaler CapEx growth may be slowing as Microsoft cuts spending in Q4 while Amazon, Facebook, and Alibaba increase theirs, leading to a...