Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, I provide an updated NAV analysis of LG Corp (003550 KS) which is an indirect beneficiary of AI data center cooling system and the physical AI products/services. </li>
<li>My base case valuation of LG Corp is market cap of 33.4 trillion won or NAV per share of 216,627 won, which is 48% higher than current share price.</li>
<li>LG Electronics is a key beneficiary of higher demand for AI driven data center cooling business and LG CNS/LG Electronics are key beneficiaries of growing demand for Physical AI.</li>
</ul>


In this insight, I provide an updated NAV analysis of LG Corp (003550 KS) which is an indirect beneficiary of AI data center cooling system and the physical AI products/services. 
My base case valuation of LG Corp is market cap of 33.4 trillion won or NAV per share of 216,627 won, which is 48% higher than current share price.
LG Electronics is a key beneficiary of higher demand for AI driven data center cooling business and LG CNS/LG Electronics are key beneficiaries of growing demand for Physical AI.


LG Corp: NAV + An Indirect Beneficiary of Growing AI Data Center Cooling Systems and Physical AI

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>Political flow hit today: Rep. Lee So-young says after the 3rd Commercial Act amendment clears, the next leg is a revamp of the inheritance/gift tax regime.</li>
<li>Tape-Wise, this looks like a core 1H narrative. Pro-equity law tweaks will get turbocharged, and with the president prioritizing this revamp, the market won’t ignore this.</li>
<li>Samsung C&amp;T and Hyundai Motor are off the table, but LG Corp, LOTTE, and SK Inc still show sizable value gaps, making them prime targets for this narrative.</li>
</ul>


Political flow hit today: Rep. Lee So-young says after the 3rd Commercial Act amendment clears, the next leg is a revamp of the inheritance/gift tax regime.
Tape-Wise, this looks like a core 1H narrative. Pro-equity law tweaks will get turbocharged, and with the president prioritizing this revamp, the market won’t ignore this.
Samsung C&amp;T and Hyundai Motor are off the table, but LG Corp, LOTTE, and SK Inc still show sizable value gaps, making them prime targets for this narrative.


Inheritance Tax Revamp Sparks Local Tape Action: LG, Lotte, SK Still Showing Big Value Gaps

<ul>
<li>Starting next week, the tax subcommittee is set to hash out the 25% proposal, and with the opposition unlikely to block it, the 25% top rate is basically locked in.</li>
<li>The street’s treating 30% payout as base case, betting on more upside. The committee may pick it up next week, with headlines likely hitting the KRX tape fast.</li>
<li>Locals are already chasing 30%+ payout, deep-value names, with gov’t aiming for a Taiwan-style re-rating. If dividend-tax headlines drop next week, these screened names could rip.</li>
</ul>


Starting next week, the tax subcommittee is set to hash out the 25% proposal, and with the opposition unlikely to block it, the 25% top rate is basically locked in.
The street’s treating 30% payout as base case, betting on more upside. The committee may pick it up next week, with headlines likely hitting the KRX tape fast.
Locals are already chasing 30%+ payout, deep-value names, with gov’t aiming for a Taiwan-style re-rating. If dividend-tax headlines drop next week, these screened names could rip.


Korea's 25% Dividend Tax Basically Locked In, Market Now Trading the 30% Payout Angle

<ul>
<li>Our updated NAV valuation of LG Corp suggests implied market cap of 17.2 trillion won or target price of 111,605 won per share, representing 29.3% higher than current levels.</li>
<li>LG Corp's investment stakes in LG Chem and LG Electronics are worth 15.7 trillion won representing 119% of LG Corp's entire market cap.</li>
<li>Lower taxes on dividends could accelerate the capital allocation to companies with higher dividend yields/payouts such as LG Corp.</li>
</ul>


Our updated NAV valuation of LG Corp suggests implied market cap of 17.2 trillion won or target price of 111,605 won per share, representing 29.3% higher than current levels.
LG Corp's investment stakes in LG Chem and LG Electronics are worth 15.7 trillion won representing 119% of LG Corp's entire market cap.
Lower taxes on dividends could accelerate the capital allocation to companies with higher dividend yields/payouts such as LG Corp.


LG Corp: NAV Analysis Suggests a 29% Upside, Likely to Catch Up to LG Chem

Asia Real Estate News Tracker, Asia Real Estate Tracker

Asia Real Estate Tracker

Asia Real Estate News Tracker

Tracking developments across Asia's regional real estate markets

Thematic (Sector/Industry)

<ul>
<li>Igis has made a significant investment by acquiring Doosan Tower in Seoul for $612 million.</li>
<li>BGO has teamed up with Investa and Cliffbrook to purchase Dexus Australian offices for $505.5 million.</li>
<li>Singapore's CBD office rents are expected to rise by up to 5% by 2026 due to ongoing supply constraints.</li>
</ul>


Igis has made a significant investment by acquiring Doosan Tower in Seoul for $612 million.
BGO has teamed up with Investa and Cliffbrook to purchase Dexus Australian offices for $505.5 million.
Singapore's CBD office rents are expected to rise by up to 5% by 2026 due to ongoing supply constraints.


Asia Real Estate Tracker (28-Jul-2026): Igis closes $612M deal for Seoul's Doosan Tower.

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)

LG Corp: NAV + An Indirect Beneficiary of Growing AI Data Center Cooling Systems and Physical AI

In this insight, I provide an updated NAV analysis of LG Corp (003550 KS) which is an indirect beneficiary of AI data center cooling system and the...

Douglas Kim

Inheritance Tax Revamp Sparks Local Tape Action: LG, Lotte, SK Still Showing Big Value Gaps

This post flags the inheritance tax revamp, which is driving local tape action today, with LG, Lotte, and SK still showing sizable value gaps.

Sanghyun Park

Korea's 25% Dividend Tax Basically Locked In, Market Now Trading the 30% Payout Angle

Both parties locked in a new divvy-tax top band: a KRW 5bn+ lane getting hit with a 30% take-rate, though the real cap is basically 25% since...

Sanghyun Park

LG Corp: NAV Analysis Suggests a 29% Upside, Likely to Catch Up to LG Chem

Our updated NAV valuation of LG Corp suggests implied market cap of 17.2 trillion won or target price of 111,605 won per share, representing 29.3%...

Douglas Kim

Asia Real Estate Tracker (28-Jul-2026): Igis closes $612M deal for Seoul's Doosan Tower.

Igis acquired Doosan Tower for $612M, BGO partnered for Dexus offices at $505.5M, and Singapore's CBD rents may rise 5% by 2026 amid ongoing supply...

Asia Real Estate Tracker

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