Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Event-Driven

<ul>
<li>KCC announced that it is issuing an EB worth $625 million in foreign currency using its stake in HD Korea Shipbuilding &amp; Offshore Engineering as the underlying asset. </li>
<li>The asset that is used as the underlying asset for the EB is 2.056 million shares of HD Korea Shipbuilding &amp; Offshore Engineering held by the KCC Corp</li>
<li>We believe this large EB issue by KCC Corp is likely to have a positive impact on KCC Corp but slightly negative impact on HD KSOE.</li>
</ul>


KCC announced that it is issuing an EB worth $625 million in foreign currency using its stake in HD Korea Shipbuilding &amp; Offshore Engineering as the underlying asset. 
The asset that is used as the underlying asset for the EB is 2.056 million shares of HD Korea Shipbuilding &amp; Offshore Engineering held by the KCC Corp
We believe this large EB issue by KCC Corp is likely to have a positive impact on KCC Corp but slightly negative impact on HD KSOE.


KCC Corp: EB Issue of $625 Million Of HD KSOE + KCC Corp and KCC Glass Share Swaps

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

<ul>
<li>Listed companies trading below 0.8x P/B may be taxed like unlisted ones—based on book value, with a floor set at 80% of NAV regardless of calculated valuation.</li>
<li>Momentum is spreading beyond holdcos, with local desks eyeing low-PBR, high treasury share names. Attached is an Excel with Q1 PBRs and Q4 treasury ratios for all listed stocks.</li>
<li>We could target direct succession names like SK Inc. or go broader, screening by treasury share % and P/B discount—likely the preferred route given Korea’s post-election momentum playbook.</li>
</ul>


Listed companies trading below 0.8x P/B may be taxed like unlisted ones—based on book value, with a floor set at 80% of NAV regardless of calculated valuation.
Momentum is spreading beyond holdcos, with local desks eyeing low-PBR, high treasury share names. Attached is an Excel with Q1 PBRs and Q4 treasury ratios for all listed stocks.
We could target direct succession names like SK Inc. or go broader, screening by treasury share % and P/B discount—likely the preferred route given Korea’s post-election momentum playbook.


PBR 0.8x Law — What Is It, and Why Might It Spark a Classic Post-Election Korea Momentum Trade?

<ul>
<li>Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&amp;T (028260 KS).</li>
<li>KCC is the second largest shareholder of Samsung C&amp;T with a 10% stake in the company which is worth 2 trillion won (US$1.4 billion).</li>
<li>Our NAV valuation of KCC Corp suggests NAV per share of 332,947 won, which is 27% higher than current price.</li>
</ul>


Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&amp;T (028260 KS).
KCC is the second largest shareholder of Samsung C&amp;T with a 10% stake in the company which is worth 2 trillion won (US$1.4 billion).
Our NAV valuation of KCC Corp suggests NAV per share of 332,947 won, which is 27% higher than current price.


KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T

<ul>
<li>On 14 December, it was reported that US based Whitebox Advisors has started an activist campaign on Samsung C&amp;T (028260 KS).</li>
<li>Whitebox estimates that Samsung C&amp;T's stock price is about 68% undervalued compared to its NAV.</li>
<li>In addition to Whitebox, there are two other foreign investors including Palliser Capital and City of London Investment Management that have requested Samsung C&amp;T to improve corporate governance.</li>
</ul>


On 14 December, it was reported that US based Whitebox Advisors has started an activist campaign on Samsung C&amp;T (028260 KS).
Whitebox estimates that Samsung C&amp;T's stock price is about 68% undervalued compared to its NAV.
In addition to Whitebox, there are two other foreign investors including Palliser Capital and City of London Investment Management that have requested Samsung C&amp;T to improve corporate governance.


<ul>
<li>This insight provides an update on the inheritance tax payment requirement by the Samsung Electronics Chairman Lee Jae-Yong and his family members. </li>
<li>Lee Jae-Yong has a final installment of 480 billion won in inheritance taxes to be paid in April 2026.</li>
<li>Once Lee makes the final inheritance tax payment next year, he can start to  reinvest his dividend income in various Samsung Group affiliates including Samsung C&amp;T.</li>
</ul>


This insight provides an update on the inheritance tax payment requirement by the Samsung Electronics Chairman Lee Jae-Yong and his family members. 
Lee Jae-Yong has a final installment of 480 billion won in inheritance taxes to be paid in April 2026.
Once Lee makes the final inheritance tax payment next year, he can start to  reinvest his dividend income in various Samsung Group affiliates including Samsung C&amp;T.


An Update on Samsung Electronics Chairman Lee Jae-Yong and His Family Members' Inheritance Taxes

South Korea

KCC Corp, manufactures paint & related product, building materials such as cement corrugated sheet, glass wool mat, and board & pipe cover, PVC window profile, paints, and ceramic fiber for high temperature applications. The Company also produces various glasses such as glass fiber, float glass, patterned glass, safety tempered glass, and long glass fibers.

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Kcc Corp (002380 KS)

PBR 0.8x Law — What Is It, and Why Might It Spark a Classic Post-Election Korea Momentum Trade?

This post breaks down what the PBR 0.8x law actually is, why it matters for Korean equities, and how it fits into the classic post-election...

Sanghyun Park

KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T

Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&T (028260 KS).

Douglas Kim

Whitebox Goes Activist on Samsung C&T

On 14 December, it was reported that US based Whitebox Advisors has started an activist campaign on Samsung C&T (028260 KS).

Douglas Kim

An Update on Samsung Electronics Chairman Lee Jae-Yong and His Family Members' Inheritance Taxes

Once Lee Jae-Yong makes the final inheritance tax payment next year (April 2026), he can start to reinvest his dividend income in various Samsung...

Douglas Kim

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

KCC Corp: EB Issue of $625 Million Of HD KSOE + KCC Corp and KCC Glass Share Swaps

KCC announced that it is issuing an EB worth $625 million in foreign currency using its stake in HD Korea Shipbuilding & Offshore Engineering as...

Douglas Kim

PBR 0.8x Law — What Is It, and Why Might It Spark a Classic Post-Election Korea Momentum Trade?

This post breaks down what the PBR 0.8x law actually is, why it matters for Korean equities, and how it fits into the classic post-election...

Sanghyun Park

KCC Corp: Considering on Issuing an Overseas EB for Its 10% Stake in Samsung C&T

Kcc Corp (002380 KS) is considering on issuing an overseas exchangeable bond (EB) for its 10% stake in Samsung C&T (028260 KS).

Douglas Kim

Whitebox Goes Activist on Samsung C&T

On 14 December, it was reported that US based Whitebox Advisors has started an activist campaign on Samsung C&T (028260 KS).

Douglas Kim

An Update on Samsung Electronics Chairman Lee Jae-Yong and His Family Members' Inheritance Taxes

Once Lee Jae-Yong makes the final inheritance tax payment next year (April 2026), he can start to reinvest his dividend income in various Samsung...

Douglas Kim