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.

Equity Capital Markets

Hanwha Solutions / Equity Capital Markets

<ul>
<li>Deal size is the key swing factor: KRW 2.1tn rights offering, 20% discount, 0.335 allocation ratio. Even with Hanwha Corp 120% take-up, KRW 1.2tn still hits the market.</li>
<li>Tighter 1st-to-2nd pricing gap reduces discount volatility, setting up a cleaner rights arb, but Hanwha Solutions’ thin SSF liquidity means short hedges will need a creative approach.</li>
<li>FSS is reviewing the deal over use of proceeds, but with Hanwha Corp pre-signaling full oversub, regulatory risk looks low and unlikely to block the rights offering.</li>
</ul>


Deal size is the key swing factor: KRW 2.1tn rights offering, 20% discount, 0.335 allocation ratio. Even with Hanwha Corp 120% take-up, KRW 1.2tn still hits the market.
Tighter 1st-to-2nd pricing gap reduces discount volatility, setting up a cleaner rights arb, but Hanwha Solutions’ thin SSF liquidity means short hedges will need a creative approach.
FSS is reviewing the deal over use of proceeds, but with Hanwha Corp pre-signaling full oversub, regulatory risk looks low and unlikely to block the rights offering.


Structural Features of Hanwha Solutions Rights Offering

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>KDIC plans to sell a 33.9% stake in Seoul Guarantee Insurance (031210 KS) (SGI) in 2026 which is worth 1.3 trillion won at current prices. </li>
<li>On 24 March, KDIC announced that it plans to sell its entire 10% stake in Hanwha Life Insurance (088350 KS) in 2026 (worth 420 billion won) at current prices. </li>
<li>These potential block deal sales of Seoul Guarantee Insurance and Hanwha Life Insurance are likely to act as negative overhangs on their share prices in the coming months. </li>
</ul>


KDIC plans to sell a 33.9% stake in Seoul Guarantee Insurance (031210 KS) (SGI) in 2026 which is worth 1.3 trillion won at current prices. 
On 24 March, KDIC announced that it plans to sell its entire 10% stake in Hanwha Life Insurance (088350 KS) in 2026 (worth 420 billion won) at current prices. 
These potential block deal sales of Seoul Guarantee Insurance and Hanwha Life Insurance are likely to act as negative overhangs on their share prices in the coming months. 


KDIC Plans to Sell a 33.9% Stake in SGI Insurance and a 10% Stake in Hanwha Life Insurance in 2026

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

<ul>
<li>You wouldn't short <a href="https://www.smartkarma.com/entities/rohm-co-ltd" target="_blank" data-smartkarma-citation="entities:2953:1" rel="noopener">ROHM Co Ltd (6963 JP)</a>. Look to add on a big dip.</li>
<li>
<a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy</a><a href="https://www.smartkarma.com/entities/enn-energy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener"> (2688 HK)</a> remains a challenging situation. But arguably there is upside potential here; but it's not a high conviction trade.</li>
<li>Large treasury share cancellations in vogue from the likes of <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/sk-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:393:1" rel="noopener">SK Inc (034730 KS)</a>, among a slew others.</li>
</ul>


You wouldn't short ROHM Co Ltd (6963 JP). Look to add on a big dip.

ENN Energy (2688 HK) remains a challenging situation. But arguably there is upside potential here; but it's not a high conviction trade.
Large treasury share cancellations in vogue from the likes of Samsung Electronics (005930 KS), SK Inc (034730 KS), among a slew others.


Last Week In Event SPACE: ROHM, ENN Energy, Samsung Electronics, SK Inc, JCNC/Astra

Index Rebalance

<ul>
<li>Korea Value-Up Index outperformed KOSPI, KOSPI200, and KOSDAQ in the past year, resulting in further interest in the index. </li>
<li>The announcement of the Korea Value-Up Index rebalance for this year to be announced in the last week of May and the rebalance date is expected around mid-June 2026.</li>
<li>In this insight, we provided a list of top 10 potential inclusions and top 10 exclusions in the Korea Value Up index rebalance in June 2026. </li>
</ul>


Korea Value-Up Index outperformed KOSPI, KOSPI200, and KOSDAQ in the past year, resulting in further interest in the index. 
The announcement of the Korea Value-Up Index rebalance for this year to be announced in the last week of May and the rebalance date is expected around mid-June 2026.
In this insight, we provided a list of top 10 potential inclusions and top 10 exclusions in the Korea Value Up index rebalance in June 2026. 


Korea Value-Up Index: Rebalancing in 2026 and Outperformance Vs KOSPI

<ul>
<li>Hanwha Impact Partners sold 1.4 trillion won worth of Hanwha Ocean shares in a block deal sale. </li>
<li>Hanwha Ocean's share price closed down at 5.4% to 112,500 won on the KRX exchange today but still 5% higher than block deal price of 107,100 won. </li>
<li>We believe that this block deal sale of 1.4 trillion won worth of Hanwha Ocean is likely to have a near-term negative impact on Hanwha Ocean's stock price.</li>
</ul>


Hanwha Impact Partners sold 1.4 trillion won worth of Hanwha Ocean shares in a block deal sale. 
Hanwha Ocean's share price closed down at 5.4% to 112,500 won on the KRX exchange today but still 5% higher than block deal price of 107,100 won. 
We believe that this block deal sale of 1.4 trillion won worth of Hanwha Ocean is likely to have a near-term negative impact on Hanwha Ocean's stock price.


A Block Deal Sale of 1.4 Trillion Won of Hanwha Ocean Shares by Hanwha Impact Partners

South Korea

Hanwha Corporation imports and exports petrochemicals, machinery, automotives, electronics, and steel.  The Company also produces explosives for the defense and construction industries.  In addition, Hanwha manufactures automotive airbag inflators and telecommunication equipment, such as wireless phones and provides financial services through its subsidiaries.

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Hanwha Corporation (000880 KS)

Structural Features of Hanwha Solutions Rights Offering

This post explores trading opportunities arising from the structural features of Hanwha Solutions’ mega-size rights offering.

Sanghyun Park

KDIC Plans to Sell a 33.9% Stake in SGI Insurance and a 10% Stake in Hanwha Life Insurance in 2026

KDIC plans to sell 33.9% stake in Seoul Guarantee Insurance and 10% stake in Hanwha Life Insurance in 2026. These potential block deal sales could...

Douglas Kim

Last Week In Event SPACE: ROHM, ENN Energy, Samsung Electronics, SK Inc, JCNC/Astra

It’s Sunday! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed during the...

David Blennerhassett

Korea Value-Up Index: Rebalancing in 2026 and Outperformance Vs KOSPI

Korea Value-Up Index outperformed KOSPI, KOSPI200, and KOSDAQ in the past year, resulting in further interest in the index.

Douglas Kim

A Block Deal Sale of 1.4 Trillion Won of Hanwha Ocean Shares by Hanwha Impact Partners

The block deal sale of 1.4 trillion won worth of Hanwha Ocean by Hanwha Impact is likely to have a near-term negative impact on Hanwha Ocean's...

Douglas Kim

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