Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>On 4 November, the Chinese government suddenly announced it will waive visa requirements for South Korean citizens entering China. </li>
<li>This is likely to have a major positive impact on major travel/airline stocks including Hana Tour Service, Korean Air Lines,  Very Good Leisure, Yellow Balloon Tour, and Modetour Network.</li>
<li>A no-visa policy by China for South Korean citizens could also imply a reciprocal policy by the South Korean government. </li>
</ul>


On 4 November, the Chinese government suddenly announced it will waive visa requirements for South Korean citizens entering China. 
This is likely to have a major positive impact on major travel/airline stocks including Hana Tour Service, Korean Air Lines,  Very Good Leisure, Yellow Balloon Tour, and Modetour Network.
A no-visa policy by China for South Korean citizens could also imply a reciprocal policy by the South Korean government. 


Chinese Government Announces a No-Visa Policy for South Korean Citizens Entering China

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>
<a href="https://www.smartkarma.com/entities/paradise-co-ltd" target="_blank" data-smartkarma-citation="entities:14940:1" rel="noopener">Paradise Co Ltd (034230 KS)</a> will move from the KOSDAQ Market to the KOSPI Market from the open of trading on 24 June.</li>
<li>
<a href="https://www.smartkarma.com/entities/e-d-co-ltd" target="_blank" data-smartkarma-citation="entities:29151:1" rel="noopener">E&amp;D Co Ltd (101360 KS)</a> will be added to the <a href="https://www.smartkarma.com/entities/kosdaq-150-index" target="_blank" data-smartkarma-citation="entities:31077:1" rel="noopener">KOSDAQ 150 Index (KOSDQ150 INDEX)</a> at the close on 21 June to replace <a href="https://www.smartkarma.com/entities/paradise-co-ltd" target="_blank" data-smartkarma-citation="entities:14940:1" rel="noopener">Paradise Co Ltd (034230 KS)</a>. </li>
<li>
<a href="https://www.smartkarma.com/entities/paradise-co-ltd" target="_blank" data-smartkarma-citation="entities:14940:1" rel="noopener">Paradise Co Ltd (034230 KS)</a> belongs to the Consumer Discretionary sector and there is a possibility of inclusion to the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX)</a> in December.</li>
</ul>



Paradise Co Ltd (034230 KS) will move from the KOSDAQ Market to the KOSPI Market from the open of trading on 24 June.

E&amp;D Co Ltd (101360 KS) will be added to the KOSDAQ 150 Index (KOSDQ150 INDEX) at the close on 21 June to replace Paradise Co Ltd (034230 KS). 

Paradise Co Ltd (034230 KS) belongs to the Consumer Discretionary sector and there is a possibility of inclusion to the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December.


KOSDAQ150 Adhoc Index Rebalance: Eco&Dream to Replace Paradise Co

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<ul>
 <li>
Monopolistic Advantage: As the only casino in South Korea legally accessible to domestic citizens, <a href="https://smartkarma.com/entities/kangwon-land-inc">Kangwon Land</a> enjoys a significant and protected revenue stream, insulating it from direct domestic competition.</li>
 <li>
Strategic Transformation to Integrated Resort: The company is undertaking a massive KRW 2.5 trillion (approx. US$1.9 billion) investment plan, dubbed the "K-HIT Project,"to evolve from a casino-centric operator into a globally competitive integrated resort. This initiative aims to triple casino space and significantly boost non-gaming revenue from 13% to 30% by 2032, enhancing its appeal to a broader tourist demographic.</li>
 <li>
Regulatory and Financial Headwinds: The company faces risks from its government ownership, including potential fund diversion to other state-owned enterprises and a leadership vacuum with no permanent CEO for over a year. Furthermore, rising costs, particularly payroll, and a heavy capital expenditure cycle are pressuring margins and could limit near-term shareholder returns.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Monopolistic Advantage: As the only casino in South Korea legally accessible to domestic citizens, Kangwon Land enjoys a significant and protected revenue stream, insulating it from direct domestic competition.
  
Strategic Transformation to Integrated Resort: The company is undertaking a massive KRW 2.5 trillion (approx. US$1.9 billion) investment plan, dubbed the "K-HIT Project,"to evolve from a casino-centric operator into a globally competitive integrated resort. This initiative aims to triple casino space and significantly boost non-gaming revenue from 13% to 30% by 2032, enhancing its appeal to a broader tourist demographic.
  
Regulatory and Financial Headwinds: The company faces risks from its government ownership, including potential fund diversion to other state-owned enterprises and a leadership vacuum with no permanent CEO for over a year. Furthermore, rising costs, particularly payroll, and a heavy capital expenditure cycle are pressuring margins and could limit near-term shareholder returns.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Kangwon Land (035250 KS) - Feb 2026

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>LARGE stands at 99 post-HD Hyundai Mipo merger; March sees 5 into LARGE (including Samsung Epis), 4 to MID, with top movers comfortably above cutoff and MID gaps watchable.</li>
<li>Two points: any names riding carryover rally momentum and mid-cap flows rising on sector rotation; LARGE candidates are hitting a pause phase, while top MID movers show clear rebound.</li>
<li>Distortion risks should ease by T-1M; if sector rotation ramps, price action could occur earlier than usual—worth monitoring.</li>
</ul>


LARGE stands at 99 post-HD Hyundai Mipo merger; March sees 5 into LARGE (including Samsung Epis), 4 to MID, with top movers comfortably above cutoff and MID gaps watchable.
Two points: any names riding carryover rally momentum and mid-cap flows rising on sector rotation; LARGE candidates are hitting a pause phase, while top MID movers show clear rebound.
Distortion risks should ease by T-1M; if sector rotation ramps, price action could occur earlier than usual—worth monitoring.


March KOSPI Size Rebalance: Sanity-Check for Front-Run Angles

Cross Asset Strategy

<ul>
<li>On 28 November, the Korean National Assembly reached an agreement on a tax reform plan to officially lower taxes on dividends income. </li>
<li>The decline in tax on dividends is a definite step in the right direction. Nonetheless, the top bracket dividend tax rate cut was slightly less than what market was expecting. </li>
<li>Given that about 15%-25% dividend tax rates are more common in other developed countries,  Korea's reduction of dividend taxes is likely to be welcomed highly by many global investors.</li>
</ul>


On 28 November, the Korean National Assembly reached an agreement on a tax reform plan to officially lower taxes on dividends income. 
The decline in tax on dividends is a definite step in the right direction. Nonetheless, the top bracket dividend tax rate cut was slightly less than what market was expecting. 
Given that about 15%-25% dividend tax rates are more common in other developed countries,  Korea's reduction of dividend taxes is likely to be welcomed highly by many global investors.


Top Bracket Dividend Tax Rate Lowered to 30% in Korea [Moderately Positive]

South Korea

Kangwon Land Inc. is a casino and hotel services provider located in the Kangwon province area of South Korea.  The Company develops abandoned mines and builds gaming and entertainment facilities.  Kangwon Land operates a number of game tables and slot machines for domestic and international customers under its gaming licenses.

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Kangwon Land (035250 KS)

Chinese Government Announces a No-Visa Policy for South Korean Citizens Entering China

The Chinese government suddenly announced it will waive visa requirements for South Korean citizens entering China. This is likely to have a major...

Douglas Kim

KOSDAQ150 Adhoc Index Rebalance: Eco&Dream to Replace Paradise Co

Eco&Dream will replace Paradise Co in the KOSDAQ150 Index at the close on Friday. Paradise Co could be added to the KOSPI200 Index in December...

Brian Freitas

Primer: Kangwon Land (035250 KS) - Feb 2026

Monopolistic Advantage: As the only casino in South Korea legally accessible to domestic citizens, Kangwon Land enjoys a significant and...

αSK Primers

March KOSPI Size Rebalance: Sanity-Check for Front-Run Angles

March KOSPI size index movers haven’t changed much vs last month: To LARGE: LG Innotek, Hanmi Pharm, L&F, Posco DX, Taihan Electric Wire. To MID:...

Sanghyun Park

Top Bracket Dividend Tax Rate Lowered to 30% in Korea [Moderately Positive]

On 28 November, the Korean National Assembly reached an agreement on a tax reform plan to officially lower taxes on dividends income.

Douglas Kim

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52-week Range

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