Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>There are some major surprises (both inclusions and exclusions) in the Korea Value Up index. </li>
<li>In particular, the telecom sector (SK Telecom and KT) and large cap holding companies (Samsung C&amp;T and LG Corp) are surprising exclusions in the index.</li>
<li>There are many surprising inclusions in the Korea Value Up Index. We provide 30 companies are surprising inclusions in the Korea Value Up Index (19 KOSDAQ and 11 KOSPI listed).</li>
</ul>


There are some major surprises (both inclusions and exclusions) in the Korea Value Up index. 
In particular, the telecom sector (SK Telecom and KT) and large cap holding companies (Samsung C&amp;T and LG Corp) are surprising exclusions in the index.
There are many surprising inclusions in the Korea Value Up Index. We provide 30 companies are surprising inclusions in the Korea Value Up Index (19 KOSDAQ and 11 KOSPI listed).


Korea Value Up Index - Surprising Inclusions and Exclusions

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

Korea Stock Exchange Kospi Index / Event-Driven

Korea Stock Exchange Kospi Index (KOSPI INDEX)

<ul>
<li>Martial law has been declared 11 times since 1945, but this is the first since Korea’s post-‘90 democratization.</li>
<li>The Martial Law Command's first proclamation blocks parliament, raising legal questions about its constitutionality and making any immediate attempt to end martial law uncertain.</li>
<li>Defense and telecom stocks could outperform short-term due to martial law, making them strong trading targets to watch.</li>
</ul>


Martial law has been declared 11 times since 1945, but this is the first since Korea’s post-‘90 democratization.
The Martial Law Command's first proclamation blocks parliament, raising legal questions about its constitutionality and making any immediate attempt to end martial law uncertain.
Defense and telecom stocks could outperform short-term due to martial law, making them strong trading targets to watch.


Breaking: Korea Drops Martial Law, Local Markets in Turmoil—What’s the Short-Term Trade Play Here?

Equity Bottom-Up

<ul>
<li>We have a Positive view of KT Corp (030200 KS) due to three main reasons.</li>
<li>First, KT has started to implement aggressive capital return policy (returning 50% of net income through dividends and share buybacks/cancellations). Two other reasons include Corporate Value Up and higher Smartscore.</li>
<li>KT Corp has been the best performing stock among the three major Korean telcos in the past one year. KT Corp's shares are up 27.9% in the past one year.</li>
</ul>


We have a Positive view of KT Corp (030200 KS) due to three main reasons.
First, KT has started to implement aggressive capital return policy (returning 50% of net income through dividends and share buybacks/cancellations). Two other reasons include Corporate Value Up and higher Smartscore.
KT Corp has been the best performing stock among the three major Korean telcos in the past one year. KT Corp's shares are up 27.9% in the past one year.


<ul>
<li>Although KT Corp has been underperforming KOSPI in the past six months, we now expect KT to outperform mainly due to its  minority stakes in HD Hyundai Robotics and K-Bank. </li>
<li>HD Hyundai Robotics and K-Bank which are two of the largest IPOs that are expected to be completed in Korea in 2026.</li>
<li>The IPOs of HD Hyundai Robotics and K-Bank are likely to have a positive impact on KT whose stakes in these companies could be worth nearly 1.9 trillion won.</li>
</ul>


Although KT Corp has been underperforming KOSPI in the past six months, we now expect KT to outperform mainly due to its  minority stakes in HD Hyundai Robotics and K-Bank. 
HD Hyundai Robotics and K-Bank which are two of the largest IPOs that are expected to be completed in Korea in 2026.
The IPOs of HD Hyundai Robotics and K-Bank are likely to have a positive impact on KT whose stakes in these companies could be worth nearly 1.9 trillion won.


KT Corp: Likely to Outperform Due to IPOs of HD Hyundai Robotics and K-Bank in 2026

<ul>
<li>Structural foreign-cap tightness blocks ADR issuance, disabling arb and making KT’s ADR premium sticky and persistently elevated, especially in high-vol premium expansion phases.</li>
<li>KT’s ADR premium ranged ~0–10% this year, trending higher when local shares sold off, then reversing lower as onshore prices turned up into year-end.</li>
<li>KT’s gradual treasury burn tied to foreign flows may distort onshore trading and cap upside, while ADR premiums stay structurally pinned, creating a clear window for underlying/ADR trades.</li>
</ul>


Structural foreign-cap tightness blocks ADR issuance, disabling arb and making KT’s ADR premium sticky and persistently elevated, especially in high-vol premium expansion phases.
KT’s ADR premium ranged ~0–10% this year, trending higher when local shares sold off, then reversing lower as onshore prices turned up into year-end.
KT’s gradual treasury burn tied to foreign flows may distort onshore trading and cap upside, while ADR premiums stay structurally pinned, creating a clear window for underlying/ADR trades.


KT Treasury Burn: Flow Distortion & Sticky ADR Premium Trade Angle

South Korea

KT Corporation provides telecommunication services including local, long distance, and international calling, satellite communication, data transmission, and wireless telephone services in South Korea.  The Company also offers network portal and high-speed Internet access services using asymmetric digital subscriber lines (ADSLs).

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

KT Corp (030200 KS)

Korea Value Up Index - Surprising Inclusions and Exclusions

There are many surprising inclusions and exclusions in the Korea Value Up Index. We provide 30 companies that are surprising inclusions and 10...

Douglas Kim

Breaking: Korea Drops Martial Law, Local Markets in Turmoil—What’s the Short-Term Trade Play Here?

Breaking news: Korea has declared martial law, causing local markets to be in turmoil—what’s the short-term trading strategy moving forward?

Sanghyun Park

Asian Dividend Gems: KT Corp

Positive outlook on KT Corp (030200 KS) due to aggressive capital return policy, Corporate Value Up, and higher Smartscore leading to strong stock...

Douglas Kim

KT Corp: Likely to Outperform Due to IPOs of HD Hyundai Robotics and K-Bank in 2026

The IPOs of HD Hyundai Robotics and K-Bank are likely to have a positive impact on KT whose stakes in these companies could be worth nearly 1.9...

Douglas Kim

KT Treasury Burn: Flow Distortion & Sticky ADR Premium Trade Angle

This post looks at mandatory treasury burns from a KT underlying/ADR trade perspective, highlighting flow distortions, foreign cap constraints, and...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Korea Value Up Index - Surprising Inclusions and Exclusions

There are many surprising inclusions and exclusions in the Korea Value Up Index. We provide 30 companies that are surprising inclusions and 10...

Douglas Kim

Breaking: Korea Drops Martial Law, Local Markets in Turmoil—What’s the Short-Term Trade Play Here?

Breaking news: Korea has declared martial law, causing local markets to be in turmoil—what’s the short-term trading strategy moving forward?

Sanghyun Park

Asian Dividend Gems: KT Corp

​Positive outlook on KT Corp (030200 KS) due to aggressive capital return policy, Corporate Value Up, and higher Smartscore leading to strong stock...

Douglas Kim

KT Corp: Likely to Outperform Due to IPOs of HD Hyundai Robotics and K-Bank in 2026

The IPOs of HD Hyundai Robotics and K-Bank are likely to have a positive impact on KT whose stakes in these companies could be worth nearly 1.9...

Douglas Kim

KT Treasury Burn: Flow Distortion & Sticky ADR Premium Trade Angle

This post looks at mandatory treasury burns from a KT underlying/ADR trade perspective, highlighting flow distortions, foreign cap constraints, and...

Sanghyun Park

Positive outlook on KT Corp (030200 KS) due to aggressive capital return policy, Corporate Value Up, and higher Smartscore leading to strong stock...