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>KDB just signaled they’ll offload their Hanjin KAL stake post-merger, likely in 2027—ending speculation they’d stay long-term to back Cho Won-tae.</li>
<li>The 9% held by Daishin and Eugene PEs may hit the market in August, with LPs likely to cash out—Hoban grabbing it could flip the whole Hanjin KAL setup.</li>
<li>If Hoban grabs the 9% PE stake in August, it could trigger a pre-2027 bidding war—possibly even a tender offer—to lock down float. This is the key near-term pivot.</li>
</ul>


KDB just signaled they’ll offload their Hanjin KAL stake post-merger, likely in 2027—ending speculation they’d stay long-term to back Cho Won-tae.
The 9% held by Daishin and Eugene PEs may hit the market in August, with LPs likely to cash out—Hoban grabbing it could flip the whole Hanjin KAL setup.
If Hoban grabs the 9% PE stake in August, it could trigger a pre-2027 bidding war—possibly even a tender offer—to lock down float. This is the key near-term pivot.


Why Late August Could Be the Pivot Point for the Hanjin KAL Trade?

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

<ul>
<li>On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund, representing 0.7% of its common shares. </li>
<li>This is a clear indication of Hanjin Kal Chairman Cho Won-Tae and his allies launching a management rights defense against Hoban Group which recently increased its stake in Hanjin Kal. </li>
<li>The higher probability scenario is for Hanjin Kal's shares to retrace down to below 100,000 won level as a full blown M&amp;A fight is not likely in the near future. </li>
</ul>


On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund, representing 0.7% of its common shares. 
This is a clear indication of Hanjin Kal Chairman Cho Won-Tae and his allies launching a management rights defense against Hoban Group which recently increased its stake in Hanjin Kal. 
The higher probability scenario is for Hanjin Kal's shares to retrace down to below 100,000 won level as a full blown M&amp;A fight is not likely in the near future. 


Hanjin Group Chairman Cho Fights Back Against Hoban Group for Control of Hanjin Kal

<ul>
<li>On 28 March, it was reported that Hoban Construction will acquire a 17.43% stake in Hanjin KAL Corp (180640 KS) from KCGI becoming the second largest shareholder of the company. </li>
<li>There are some further possibilities of Hoban Construction forming an alliance with Bando Construction later on which could make the shareholding structure of HanjinKal very interesting. </li>
<li>There has been an increased increase in the travel/leisure related plays (including HanjinKal) with the opening up of travel and fewer COVID restrictions in some countries including in South Korea.</li>
</ul>


On 28 March, it was reported that Hoban Construction will acquire a 17.43% stake in Hanjin KAL Corp (180640 KS) from KCGI becoming the second largest shareholder of the company. 
There are some further possibilities of Hoban Construction forming an alliance with Bando Construction later on which could make the shareholding structure of HanjinKal very interesting. 
There has been an increased increase in the travel/leisure related plays (including HanjinKal) with the opening up of travel and fewer COVID restrictions in some countries including in South Korea.


Hoban Construction Acquires a 17.4% Stake in HanjinKal

Equity Bottom-Up

<ul>
<li>In this insight, we discuss a pair trade between Korean Air Lines (003490 KS) (go long) and Hanjin KAL Corp (180640 KS) (go short). </li>
<li>In the past three months as well as 12 months, there has been a sharp increase in the gap of Korean Air Lines and Hanjin KAL Corp. </li>
<li>It is uncertain how much longer Hoban Group will maintain its stake in Hanjin Kal. Hoban could reduce its stake in Hanjin Kal but increase its stake in LS Corp. </li>
</ul>


In this insight, we discuss a pair trade between Korean Air Lines (003490 KS) (go long) and Hanjin KAL Corp (180640 KS) (go short). 
In the past three months as well as 12 months, there has been a sharp increase in the gap of Korean Air Lines and Hanjin KAL Corp. 
It is uncertain how much longer Hoban Group will maintain its stake in Hanjin Kal. Hoban could reduce its stake in Hanjin Kal but increase its stake in LS Corp. 


A Pair Trade Between Korean Air and Hanjin Kal

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 Nov 28th. The aggregated short interest was USD11.5bn.</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 Hanwha Ocean, SK Hynix, kakaopay, NAVER, HD HYUNDAI HEAVY INDUSTRIES.</li>
</ul>


We analyzed the changes in short interest of KRX stocks as of Nov 28th. The aggregated short interest was USD11.5bn.
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 Hanwha Ocean, SK Hynix, kakaopay, NAVER, HD HYUNDAI HEAVY INDUSTRIES.


KRX Short Interest Weekly (Nov 28th): Hanwha Ocean, SK Hynix, Kakaopay, NAVER

South Korea

Hanjin KAL Corporation is a holding company. The Company, through its subsidiaries, engages in airline, hotel, and travel related services. Hanjin also invests in real estates.

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Hanjin KAL Corp (180640 KS)

Why Late August Could Be the Pivot Point for the Hanjin KAL Trade?

This post dives into why late August is the key pivot for the Hanjin KAL trade — this is when the whole setup could flip.

Sanghyun Park

Hanjin Group Chairman Cho Fights Back Against Hoban Group for Control of Hanjin Kal

On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund,...

Douglas Kim

Hoban Construction Acquires a 17.4% Stake in HanjinKal

It was reported after market close on KRX that Hoban Construction, the second-largest shareholder of Hanjin KAL Corp (180640 KS), increased its...

Douglas Kim

A Pair Trade Between Korean Air and Hanjin Kal

In this insight, we discuss a pair trade between Korean Air Lines (003490 KS) (go long) and Hanjin KAL Corp (180640 KS) (go short).

Douglas Kim

KRX Short Interest Weekly (Nov 28th): Hanwha Ocean, SK Hynix, Kakaopay, NAVER

We analyzed KRX short interest report for the past week and highlighted short interest changes in Hanwha Ocean, SK Hynix, kakaopay, NAVER, HD...

Ke Yan, CFA, FRM

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52-week Range

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