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>A high-ranking official from the local financial regulatory authority has confirmed to several local media outlets that the tax benefits for the value-up program will be unveiled this month.</li>
<li>Corporate tax cuts and separate taxation on dividend income will be included. The short-term impact at the time of the announcement will likely be more significant for corporate tax cuts.</li>
<li>Local market is focused on screening large companies within the KOSPI 200 that have substantial pre-tax profits in anticipation of the corporate tax cut momentum to be announced this month.</li>
</ul>


A high-ranking official from the local financial regulatory authority has confirmed to several local media outlets that the tax benefits for the value-up program will be unveiled this month.
Corporate tax cuts and separate taxation on dividend income will be included. The short-term impact at the time of the announcement will likely be more significant for corporate tax cuts.
Local market is focused on screening large companies within the KOSPI 200 that have substantial pre-tax profits in anticipation of the corporate tax cut momentum to be announced this month.


Value-Up Tax Support Revealed by End of June: Local Market Eyes Corporate Tax Cut Beneficiaries

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>The Deputy Prime Minister Choi Sang Mok reaffirmed the Corporate Value Up program, pushing up the major value driven/low PBR stocks in Korea today.</li>
<li>Deputy Prime Minister Choi emphasized that as part of Corporate Value Up program, corporate tax benefits to companies that have made efforts to strengthen shareholder return policy will be provided.</li>
<li>The Korean government also plans to revise the law to separate taxation on the dividend income of shareholders of companies that expand dividends.</li>
</ul>


The Deputy Prime Minister Choi Sang Mok reaffirmed the Corporate Value Up program, pushing up the major value driven/low PBR stocks in Korea today.
Deputy Prime Minister Choi emphasized that as part of Corporate Value Up program, corporate tax benefits to companies that have made efforts to strengthen shareholder return policy will be provided.
The Korean government also plans to revise the law to separate taxation on the dividend income of shareholders of companies that expand dividends.


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>The Fed has embarked on a rate hike cycle and one more hike in December seems baked in. Treasury yields hovering at higher than 5% seem to portend more hikes.</li>
<li>Asian yields started rising and PE peaked a year ago. Foreign flows, also impacted by US yields, dropped massively in 2025-26. Valuations and flows are anticipating the bad news already.</li>
<li>Banks, insurance and basic materials should do well in an inflationary and tighter monetary environment. These sectors are also cheap in relation to their future earnings growth and ROE.</li>
</ul>


The Fed has embarked on a rate hike cycle and one more hike in December seems baked in. Treasury yields hovering at higher than 5% seem to portend more hikes.
Asian yields started rising and PE peaked a year ago. Foreign flows, also impacted by US yields, dropped massively in 2025-26. Valuations and flows are anticipating the bad news already.
Banks, insurance and basic materials should do well in an inflationary and tighter monetary environment. These sectors are also cheap in relation to their future earnings growth and ROE.


Asian Equities: As Fed Hikes Loom, Asia’s Derating Clears the Path for Selective Sectoral Rerating

<ul>
<li>After 9 months of relentless selling in Asia foreign institutions bought US$6bn in August. Taiwan (US$10.3bn) and India (US$3.15bn) were bought while Korea was sold (-US$7.3bn).</li>
<li>In 2026 YTD, FIIs have sold US$109.5bn in Korea, US$42.5bn in Taiwan, US$24bn in India. Sharpest FII investment recovery in India: US$5.3bn buying in July-August after US$29.3bn selling in January-June.</li>
<li>For this FII recovery to sustain, we need the US treasury yields to moderate and the Asian currencies to stabilize. The other necessity, robust Asian earnings, is panning out well,</li>
</ul>


After 9 months of relentless selling in Asia foreign institutions bought US$6bn in August. Taiwan (US$10.3bn) and India (US$3.15bn) were bought while Korea was sold (-US$7.3bn).
In 2026 YTD, FIIs have sold US$109.5bn in Korea, US$42.5bn in Taiwan, US$24bn in India. Sharpest FII investment recovery in India: US$5.3bn buying in July-August after US$29.3bn selling in January-June.
For this FII recovery to sustain, we need the US treasury yields to moderate and the Asian currencies to stabilize. The other necessity, robust Asian earnings, is panning out well,


Asian Equities: Foreign Flow into Asia Turned Around in August, Driven by Taiwan and India

<ul>
<li>Record high US yields could impact Asia through rising cost of capital dampening growth and valuations. Besides, foreign money could continue to move towards safe haven US treasuries.</li>
<li>The Asian markets where central banks are forced to hike policy rates, and the markets that are steeply valued relative to earnings growth or ROEs could be particularly vulnerable.</li>
<li>Korea, Indonesia and Philippines are hiking rates. Judging by inflation trajectories and real rates, India and Thailand could join later this year. India and Taiwan appear overvalued relative to ROEs.</li>
</ul>


Record high US yields could impact Asia through rising cost of capital dampening growth and valuations. Besides, foreign money could continue to move towards safe haven US treasuries.
The Asian markets where central banks are forced to hike policy rates, and the markets that are steeply valued relative to earnings growth or ROEs could be particularly vulnerable.
Korea, Indonesia and Philippines are hiking rates. Judging by inflation trajectories and real rates, India and Thailand could join later this year. India and Taiwan appear overvalued relative to ROEs.


Asian Equities: Watch Interest Rates, Inflation Trajectories and Valuations

South Korea

Hana Financial Group Inc., in accordance with Financial Holding Companies Act, was established on December 1, 2005, through stock transfer with the former shareholders of its subsidiaries in order to provide management services and financing to associated companies.

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Hana Financial (086790 KS)

Value-Up Tax Support Revealed by End of June: Local Market Eyes Corporate Tax Cut Beneficiaries

A high-ranking official confirmed that tax cut incentives for the value-up program will be unveiled by the end of this month. This post...

Sanghyun Park

Mr. Choi Goes to Washington

The Deputy Prime Minister Choi Sang Mok reaffirmed the Corporate Value Up program, pushing up the major value driven/low PBR stocks in Korea today.

Douglas Kim

Asian Equities: As Fed Hikes Loom, Asia’s Derating Clears the Path for Selective Sectoral Rerating

Skyrocketing US yields portend more hikes. Asian yields rose & PE peaked a year ago. Foreign outflows over 25-26 seem to anticipate the tightening....

Manishi Raychaudhuri

Asian Equities: Foreign Flow into Asia Turned Around in August, Driven by Taiwan and India

After selling Asia for 9 months FIIs bought US$6bn in Aug. TW (US$10.3bn) & India (US$3.15bn) were bought, KR was sold (-US$7.3bn). For buying to...

Manishi Raychaudhuri

Asian Equities: Watch Interest Rates, Inflation Trajectories and Valuations

Record high US yields could depress Asian growth & valuations. Besides KR, ID & PH who are hiking rates, India & TH could join later. India & TW...

Manishi Raychaudhuri

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