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>If the three non-IT names exit IT, passive flows hit hard: SK Square/LG Electronics ~0.4× DTV out, LG Corp ~0.8× DTV out, new IT entrants ~0.2–0.25× DTV in.</li>
<li>If KRX surprises next Tuesday, kicking three names from IT, expect immediate tape reaction—market memory exists, but the scenario isn’t priced, unlike 2023 Kakaopay, so instant price impact is likely.</li>
<li>If this happens, June 11 turns into a chunky basket-flow day: SK Square (~15% weight) out, next-tier caps see ~0.15–0.2× DTV inflow, except ultra-liquid names like Hanmi Semi.</li>
</ul>


If the three non-IT names exit IT, passive flows hit hard: SK Square/LG Electronics ~0.4× DTV out, LG Corp ~0.8× DTV out, new IT entrants ~0.2–0.25× DTV in.
If KRX surprises next Tuesday, kicking three names from IT, expect immediate tape reaction—market memory exists, but the scenario isn’t priced, unlike 2023 Kakaopay, so instant price impact is likely.
If this happens, June 11 turns into a chunky basket-flow day: SK Square (~15% weight) out, next-tier caps see ~0.15–0.2× DTV inflow, except ultra-liquid names like Hanmi Semi.


Unexpected ETF-Driven Flow Event Lights up the KOSPI 200 IT Sleeve

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>There will be an end of lock up of 67.5% of LG CNS (064400 KS)'s shares starting 5 August (6 months post IPO).</li>
<li>The shares subject to the release are those held by the largest shareholder LG Corp (003550 KS) and Crystal Korea (Macquarie).</li>
<li>We would emphasize on positive developments on LG CNS (solid operating results and stablecoin rollout in Korea) which could be bigger factors than potential selling by the second largest shareholder.</li>
</ul>


There will be an end of lock up of 67.5% of LG CNS (064400 KS)'s shares starting 5 August (6 months post IPO).
The shares subject to the release are those held by the largest shareholder LG Corp (003550 KS) and Crystal Korea (Macquarie).
We would emphasize on positive developments on LG CNS (solid operating results and stablecoin rollout in Korea) which could be bigger factors than potential selling by the second largest shareholder.


LG CNS: End of Lockup for 67.5% of Outstanding Shares on 5 August

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>Last week, London-based activist Palliser Capital tapped <strong><a href="https://www.smartkarma.com/entities/lg-chem-ltd" target="_blank" data-smartkarma-citation="entities:3583:1" rel="noopener">LG Chem (051910 KS)</a></strong> to remedy its NAV market discount. Palliser also said it now holds a little over 1% in LG Chem.</li>
<li>LG Chem's large NAV discount is well known. It has been present since ~82%-held <strong><a href="https://www.smartkarma.com/entities/lg-energy-solution" target="_blank" data-smartkarma-citation="entities:33464:1" rel="noopener">LG Energy Solution (373220 KS)</a> (LGES) </strong>was listed in January 2022. </li>
<li>An obvious solution is to pare down the LGES stake, and buy back shares. Yet the discount remains as the market views management as being (stubbornly) set in their ways.</li>
</ul>


Last week, London-based activist Palliser Capital tapped LG Chem (051910 KS) to remedy its NAV market discount. Palliser also said it now holds a little over 1% in LG Chem.
LG Chem's large NAV discount is well known. It has been present since ~82%-held LG Energy Solution (373220 KS) (LGES) was listed in January 2022. 
An obvious solution is to pare down the LGES stake, and buy back shares. Yet the discount remains as the market views management as being (stubbornly) set in their ways.


LG Chem (051910 KS): Palliser Targets Steep NAV Discount

<ul>
<li>LG plans to cancel its remaining 3.02M treasury shares by next year, effectively wiping out all treasury stock—a clear preemptive move ahead of mandatory cancellation rules.</li>
<li>Local pension funds are betting SK Inc will do a partial treasury burn before Q4, front-running the 3rd Commercial Act and sending a pro-policy signal.</li>
<li>The SK treasury burn story offers multiple plays: holdco rerate, SK Inc momentum, and subsidiary rollover as NAV discounts tighten—definitely a multi-layered setup worth active monitoring.</li>
</ul>


LG plans to cancel its remaining 3.02M treasury shares by next year, effectively wiping out all treasury stock—a clear preemptive move ahead of mandatory cancellation rules.
Local pension funds are betting SK Inc will do a partial treasury burn before Q4, front-running the 3rd Commercial Act and sending a pro-policy signal.
The SK treasury burn story offers multiple plays: holdco rerate, SK Inc momentum, and subsidiary rollover as NAV discounts tighten—definitely a multi-layered setup worth active monitoring.


What Was It in SK Inc that Got the Local Pension Funds Loading up Hard Today?

<ul>
<li>PLUS High Dividend ETF (161510 KS) reshuffle is now a key flow catalyst: June saw GS E&amp;C and HD Hyundai out, Hyundai Motor in, with sharp one-day moves.</li>
<li>December review shaping up as 2-in/2-out: Seoul Guarantee (031210) and LG Corp (003550) in, Shinhan (055550) and KB (105560) out.</li>
<li>Passive flows: Shinhan/KB ~0.3–0.4x DTV, LG ~3x, Seoul Guarantee 5–6x. With AUM up 30% since June, upcoming adds face outsized passive impact.</li>
</ul>


PLUS High Dividend ETF (161510 KS) reshuffle is now a key flow catalyst: June saw GS E&amp;C and HD Hyundai out, Hyundai Motor in, with sharp one-day moves.
December review shaping up as 2-in/2-out: Seoul Guarantee (031210) and LG Corp (003550) in, Shinhan (055550) and KB (105560) out.
Passive flows: Shinhan/KB ~0.3–0.4x DTV, LG ~3x, Seoul Guarantee 5–6x. With AUM up 30% since June, upcoming adds face outsized passive impact.


Flagging a New Passive Flow Trading Opportunity Triggered by Korea’s Divvy Policy Momentum

South Korea

LG Corp. is a holding company, which operates subsidiaries including LG Electronics, LG Household & Health Care, LG Chem Ltd., and Dacom Corp. The Company's main business areas are electronics, chemicals, and household products manufacturing and telecommunications services.

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LG Corp (003550 KS)

Unexpected ETF-Driven Flow Event Lights up the KOSPI 200 IT Sleeve

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Sanghyun Park

LG CNS: End of Lockup for 67.5% of Outstanding Shares on 5 August

It was announced today that Macquarie PE sold about 7.4 million shares of LG CNS in a block deal trade. The selling price was 60,242 won (9%...

Douglas Kim

LG Chem (051910 KS): Palliser Targets Steep NAV Discount

At a 72% discount to NAV, you're hard pressed to be negative on LG Chem. I would also argue LG Corp (003550 KS), where the Koo family is aligned,...

David Blennerhassett

What Was It in SK Inc that Got the Local Pension Funds Loading up Hard Today?

Fresh local intel indicates that the 3rd Commercial Act tweak, mandating treasury share cancellations, is a done deal with bipartisan backing....

Sanghyun Park

Flagging a New Passive Flow Trading Opportunity Triggered by Korea’s Divvy Policy Momentum

This post flags a new passive flow trade kicking in on Korea’s divvy policy momentum, with upcoming index reshuffles and strong dividend trends...

Sanghyun Park

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