Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Cross Asset Strategy

<ul>
<li>There is an important potential change in dividend income taxes that may finally be passed into law in Korea.</li>
<li>The Democratic Party of Korea (led by Democratic Party lawmaker Lee So-Young) is pushing legislation to separate the taxation of dividends from comprehensive income for publicly listed companies.</li>
<li>Among the top 100 companies in KOSPI (by market cap), there are 21 companies with more than 35% estimated dividend payout in 2025, including SK Telecom, POSCO Holdings, and KT&amp;G.</li>
</ul>


There is an important potential change in dividend income taxes that may finally be passed into law in Korea.
The Democratic Party of Korea (led by Democratic Party lawmaker Lee So-Young) is pushing legislation to separate the taxation of dividends from comprehensive income for publicly listed companies.
Among the top 100 companies in KOSPI (by market cap), there are 21 companies with more than 35% estimated dividend payout in 2025, including SK Telecom, POSCO Holdings, and KT&amp;G.


Potential Change in Dividend Income Taxes in Korea - Will the Lawmakers Finally Make the Change?

<ul>
<li>Capitalizing on the lower share prices combined with the government's pressure for Corporate Value up improvements, the share buybacks surged in Korea in 2024.</li>
<li>As of 27 December 2024, the total treasury shares planned acquisition amount by Korean companies increased by 215% YoY to 11.83 trillion won in 2024.</li>
<li>There have been some mixed share price performances among the companies announcing meaningful share buyback/cancellation announcements this year.</li>
</ul>


Capitalizing on the lower share prices combined with the government's pressure for Corporate Value up improvements, the share buybacks surged in Korea in 2024.
As of 27 December 2024, the total treasury shares planned acquisition amount by Korean companies increased by 215% YoY to 11.83 trillion won in 2024.
There have been some mixed share price performances among the companies announcing meaningful share buyback/cancellation announcements this year.


<ul>
<li>In this insight, we discuss the potential impeachment of the South Korean President Yoon Suk-Yeol and the implications on the Korean financial markets.</li>
<li>We would put a 50-60% probability that there is more than 200 votes to impeach the South Korean President Yoon Suk-Yeol right now by the members of the Parliament.</li>
<li>We would attach about 30-40% probability that at least six justices of the Constitutional Court vote in favor of impeaching President Yoon. </li>
</ul>


In this insight, we discuss the potential impeachment of the South Korean President Yoon Suk-Yeol and the implications on the Korean financial markets.
We would put a 50-60% probability that there is more than 200 votes to impeach the South Korean President Yoon Suk-Yeol right now by the members of the Parliament.
We would attach about 30-40% probability that at least six justices of the Constitutional Court vote in favor of impeaching President Yoon. 


Potential Impeachment of President Yoon Suk-Yeol and Impact on the Korean Financial Markets

<ul>
<li>The Korea Exchange is expected to announce its long awaited KRX Korea Value-Up index on 24 September. However, the actual launch of this index will begin on 30 September.</li>
<li>It is expected to produce two types of indices including a basic price index (PR) and a total return index (TR) under the name of KRX Korea Value-Up index.</li>
<li>In this insight, we also provide a list of 20 small cap stocks that could be included in the Korea Value Up index.</li>
</ul>


The Korea Exchange is expected to announce its long awaited KRX Korea Value-Up index on 24 September. However, the actual launch of this index will begin on 30 September.
It is expected to produce two types of indices including a basic price index (PR) and a total return index (TR) under the name of KRX Korea Value-Up index.
In this insight, we also provide a list of 20 small cap stocks that could be included in the Korea Value Up index.


Announcement of Value-Up Index in Korea on 24 September

<ul>
<li>In this insight, we compare the outstanding shares changes in the Korean stock market (KOSPI and KOSDAQ) relative to M7 (Magnificent 7) companies. </li>
<li>In Korea, there are more companies such as Samsung C&amp;T, KB Financial, and KT&amp;G that are actively reducing their outstanding shares and investors are rewarding them with higher share prices.</li>
<li>Top 10 companies in KOSPI that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share price increase of 116% on average in this period.</li>
</ul>


In this insight, we compare the outstanding shares changes in the Korean stock market (KOSPI and KOSDAQ) relative to M7 (Magnificent 7) companies. 
In Korea, there are more companies such as Samsung C&amp;T, KB Financial, and KT&amp;G that are actively reducing their outstanding shares and investors are rewarding them with higher share prices.
Top 10 companies in KOSPI that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share price increase of 116% on average in this period.


Corporate Value Up in Korea - Focus On Reducing Outstanding Shares and Comparison to M7

South Korea

KT&G Corporation processes, produces, and sells cigarettes and other tobacco products.  The Company, through its subsidiaries, manufactures ginseng products such as red ginseng tea and herbal medicines.  KT&G is also involved in real estate development of its former factory sites.

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KT&G Corporation (033780 KS)

Potential Change in Dividend Income Taxes in Korea - Will the Lawmakers Finally Make the Change?

Under the revised proposed law, it would apply separate tax rates to the dividends of listed companies with dividend payout ratios of more than 35%.

Douglas Kim

Potential Impeachment of President Yoon Suk-Yeol and Impact on the Korean Financial Markets

In this insight, we discuss the potential impeachment of the South Korean President Yoon Suk-Yeol and the implications on the Korean financial...

Douglas Kim

Announcement of Value-Up Index in Korea on 24 September

The Korea Exchange is expected to announce its long awaited KRX Korea Value-Up index on 24 September. We also provide a list of 20 small cap stocks...

Douglas Kim

Corporate Value Up in Korea - Focus On Reducing Outstanding Shares and Comparison to M7

Top 10 companies in KOSPI (ranked by market cap) that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Potential Change in Dividend Income Taxes in Korea - Will the Lawmakers Finally Make the Change?

Under the revised proposed law, it would apply separate tax rates to the dividends of listed companies with dividend payout ratios of more than 35%.

Douglas Kim

Surging Share Buybacks in Korea in 2024

Capitalizing on the lower share prices combined with the government's pressure for Corporate Value up improvements, the share buybacks surged in...

Douglas Kim

Potential Impeachment of President Yoon Suk-Yeol and Impact on the Korean Financial Markets

In this insight, we discuss the potential impeachment of the South Korean President Yoon Suk-Yeol and the implications on the Korean financial...

Douglas Kim

Announcement of Value-Up Index in Korea on 24 September

The Korea Exchange is expected to announce its long awaited KRX Korea Value-Up index on 24 September. We also provide a list of 20 small cap stocks...

Douglas Kim

Corporate Value Up in Korea - Focus On Reducing Outstanding Shares and Comparison to M7

Top 10 companies in KOSPI (ranked by market cap) that reduced their outstanding shares (from end of 2019 to 5 Sept 24) experienced average share...

Douglas Kim