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>Names outside the new tax regime may hike year-end payouts, with gov’t push boosting odds despite fuzzy timing, drawing local desk interest.</li>
<li>With timing murky, local desks are targeting high-yield names, 25–40% FY25 payout, and ~10%+ DPS growth as prime candidates for year-end dividend hikes ahead of AGMs.</li>
<li>Nine first-tier names (25–40% payout, &lt;10% DPS growth, 3%+ yield) are prime dividend plays; five second-tier names (20–25% payout) need monitoring for potential Q4 expense tweaks.</li>
</ul>


Names outside the new tax regime may hike year-end payouts, with gov’t push boosting odds despite fuzzy timing, drawing local desk interest.
With timing murky, local desks are targeting high-yield names, 25–40% FY25 payout, and ~10%+ DPS growth as prime candidates for year-end dividend hikes ahead of AGMs.
Nine first-tier names (25–40% payout, &lt;10% DPS growth, 3%+ yield) are prime dividend plays; five second-tier names (20–25% payout) need monitoring for potential Q4 expense tweaks.


Local Desks Target Year-End Dividend Boost Trading Setup

<ul>
<li>HMC buyback ~₩0.8–1.0tn (~1.5% SO). Street focus is ord/pref split, with prefs at ~25% discount. Mgmt urgency: lift equity value as K‑market rallies.</li>
<li>Narrowing the pref gap seen as the cleanest lever—shareholder‑friendly signal, draws real money/offshore flows, de‑risks policy optics—so locals expect the first buyback leg skewed to prefs.</li>
<li>Street sees HMC aiming mid‑teens pref discount via year‑end pref‑heavy buyback and dividend tax reform. Catalysts make narrowing trend look achievable.</li>
</ul>


HMC buyback ~₩0.8–1.0tn (~1.5% SO). Street focus is ord/pref split, with prefs at ~25% discount. Mgmt urgency: lift equity value as K‑market rallies.
Narrowing the pref gap seen as the cleanest lever—shareholder‑friendly signal, draws real money/offshore flows, de‑risks policy optics—so locals expect the first buyback leg skewed to prefs.
Street sees HMC aiming mid‑teens pref discount via year‑end pref‑heavy buyback and dividend tax reform. Catalysts make narrowing trend look achievable.


Running Through the Context Behind Chatter of HMC Rolling Out a Pref‑tilted First‑leg Buyback

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>Sanae Taikichi will become the next Prime Minister of Japan. This is likely to have a Negative impact on the Korean automakers including Hyundai Motor and Kia Corp.</li>
<li>Sanae Takaichi is a firm advocate of the late Prime Minister Shinzo Abe's "Abenomics" strategy to boost the economy with aggressive spending and easing monetary policy.</li>
<li>The weakening JPY combined with existing tariff rate advantage versus the South Korea could further positively impact the Japanese auto makers versus the Korean auto makers. </li>
</ul>


Sanae Taikichi will become the next Prime Minister of Japan. This is likely to have a Negative impact on the Korean automakers including Hyundai Motor and Kia Corp.
Sanae Takaichi is a firm advocate of the late Prime Minister Shinzo Abe's "Abenomics" strategy to boost the economy with aggressive spending and easing monetary policy.
The weakening JPY combined with existing tariff rate advantage versus the South Korea could further positively impact the Japanese auto makers versus the Korean auto makers. 


Sanae Takaichi To Become Prime Minister of Japan - Negative Impact on Korean Auto Makers

<ul>
<li>Fiduciary duty expansion gains teeth once the third-stage treasury cancellation passes—setting up Class A prefs as prime re-rating, discount-compression plays in local flows.</li>
<li>Fiduciary duty expansion gives Class A prefs new legal backing, making them standout re-rating plays with discount-compression potential, unlike Class B with built-in dividend protections.</li>
<li>Hyundai Motor 1P vs 2PB offers a tight but tradable setup, while CJ Corp and AmoreH show wider A/B gaps, even after adjusting convertible premiums.</li>
</ul>


Fiduciary duty expansion gains teeth once the third-stage treasury cancellation passes—setting up Class A prefs as prime re-rating, discount-compression plays in local flows.
Fiduciary duty expansion gives Class A prefs new legal backing, making them standout re-rating plays with discount-compression potential, unlike Class B with built-in dividend protections.
Hyundai Motor 1P vs 2PB offers a tight but tradable setup, while CJ Corp and AmoreH show wider A/B gaps, even after adjusting convertible premiums.


Fiduciary Duty Expansion in Korea Fuels Class A Prefs Relative Value Trade

<ul>
<li>One of the biggest events in Korea in the past week has been the uncertainty regarding the US tariffs on South Korea which remains unchanged at 25%.</li>
<li>On top of this, it was reported on 9 September that the US tariffs on Japanese goods including cars and auto parts will be lowered to 15% by 16 September.</li>
<li>If Lee's approval rating falls to about 45% to 50% range, then there could be a greater urgency by the Korean government to finalize a trade deal with the US. </li>
</ul>


One of the biggest events in Korea in the past week has been the uncertainty regarding the US tariffs on South Korea which remains unchanged at 25%.
On top of this, it was reported on 9 September that the US tariffs on Japanese goods including cars and auto parts will be lowered to 15% by 16 September.
If Lee's approval rating falls to about 45% to 50% range, then there could be a greater urgency by the Korean government to finalize a trade deal with the US. 


US Tariffs on Imports from Japan Lowered to 15% but Imports from Korea Are Unchanged at 25% - Why?

South Korea

Hyundai Motor Company manufactures, sells, and exports passenger cars, trucks, and commercial vehicles. The Company also sells various auto parts and operates auto repair service centers throughout South Korea. Hyundai Motor provides financial services through its subsidiaries.

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Hyundai Motor (005380 KS)

Local Desks Target Year-End Dividend Boost Trading Setup

Local desks in Korea are zeroing in on a trading setup targeting dividend boosts from now through early next year, ahead of AGMs.

Sanghyun Park

Running Through the Context Behind Chatter of HMC Rolling Out a Pref‑tilted First‑leg Buyback

This post runs through the setup fueling street talk of Hyundai Motor rolling out a pref‑heavy first‑leg buyback by year‑end.

Sanghyun Park

Sanae Takaichi To Become Prime Minister of Japan - Negative Impact on Korean Auto Makers

Sanae Taikichi will become the next Prime Minister of Japan. This is likely to have a Negative impact on the Korean automakers including Hyundai...

Douglas Kim

Fiduciary Duty Expansion in Korea Fuels Class A Prefs Relative Value Trade

This post explores how the recent shift in fiduciary duties in Korea could create a relative value opportunity in Class A preferred shares.

Sanghyun Park

US Tariffs on Imports from Japan Lowered to 15% but Imports from Korea Are Unchanged at 25% - Why?

One of the biggest events in Korea in the past week has been the uncertainty regarding the US tariffs on South Korea which remains unchanged at 25%.

Douglas Kim

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