Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>Democratic Party lawmaker Kim Hyun-jung has introduced a revised Income Tax Act that would lower the top tax rate on dividend income from 35% to 25%.</li>
<li>Given that this proposal is coming from the ruling Democratic Party, there is a fairly high probability that this could be passed into law in 3Q 2025.</li>
<li>We provide a list of 28 mid-cap/large cap stocks in Korea with more than 35% dividend payout and 3% or more dividend yield that could benefit from this new proposal.</li>
</ul>


Democratic Party lawmaker Kim Hyun-jung has introduced a revised Income Tax Act that would lower the top tax rate on dividend income from 35% to 25%.
Given that this proposal is coming from the ruling Democratic Party, there is a fairly high probability that this could be passed into law in 3Q 2025.
We provide a list of 28 mid-cap/large cap stocks in Korea with more than 35% dividend payout and 3% or more dividend yield that could benefit from this new proposal.


Separate Dividend Tax Plan in Korea: A Push for a 25% Rate for Top Bracket

Event-Driven

<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 IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

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

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.

<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

<ul>
<li>HD Hyundai Robotics will raise 200 billion won ($144 million) valuing the company at 1.8 trillion won.</li>
<li>Korea Development Bank and KY PE will be investing 200 billion won in HD Hyundai Robotics through a redeemable convertible preference shares in September.</li>
<li>Our NAV valuation analysis of HD Hyundai suggests target price of 168,561 won per share, which represents a 27% upside from current levels.</li>
</ul>


HD Hyundai Robotics will raise 200 billion won ($144 million) valuing the company at 1.8 trillion won.
Korea Development Bank and KY PE will be investing 200 billion won in HD Hyundai Robotics through a redeemable convertible preference shares in September.
Our NAV valuation analysis of HD Hyundai suggests target price of 168,561 won per share, which represents a 27% upside from current levels.


HD Hyundai Robotics Raises 200 Billion Won and NAV Analysis of HD Hyundai

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).

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KT Corp Sp Adr (KT US)

Separate Dividend Tax Plan in Korea: A Push for a 25% Rate for Top Bracket

The final decision to lower top bracket dividend tax from 35% to 25% could be made in the next several days. There have been increasing local news...

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

HD Hyundai Robotics Raises 200 Billion Won and NAV Analysis of HD Hyundai

HD Hyundai Robotics will raise 200 billion won ($144 million) valuing the company at 1.8 trillion won. Korea Development Bank and KY PE will be...

Douglas Kim

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