Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (18 July to 1 August 2025).</li>
<li>Our top 10 picks were up on average 4.5% in the past two weeks, slightly outperforming KOSPI which was up 4.4% in the same period.</li>
<li>The top 10 picks in this bi-weekly include Hanil Cement, LG CNS, KCC Corp, Poongsan, Paradise, Samsung Electronics, Naver, SM Entertainment, LG Chem, and SK Inc. </li>
</ul>


In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (18 July to 1 August 2025).
Our top 10 picks were up on average 4.5% in the past two weeks, slightly outperforming KOSPI which was up 4.4% in the same period.
The top 10 picks in this bi-weekly include Hanil Cement, LG CNS, KCC Corp, Poongsan, Paradise, Samsung Electronics, Naver, SM Entertainment, LG Chem, and SK Inc. 


Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (18 July to 1 August 2025)

<ul>
<li>In this insight, we discuss a pair trade between LG Chem Ltd (051910 KS) (common) and LG Chem (051915 KS) (preferred). </li>
<li>The price ratio (LG Chem common/preferred) is now at 2.16x, which is more than 2 STD (standard deviations). Our trading strategy involves revert to the mean. </li>
<li>One of the key reasons why LG Chem (preferred)'s share price has fared much worse YTD than LG Chem (common) is due to much larger selling by the foreign investors. </li>
</ul>


In this insight, we discuss a pair trade between LG Chem Ltd (051910 KS) (common) and LG Chem (051915 KS) (preferred). 
The price ratio (LG Chem common/preferred) is now at 2.16x, which is more than 2 STD (standard deviations). Our trading strategy involves revert to the mean. 
One of the key reasons why LG Chem (preferred)'s share price has fared much worse YTD than LG Chem (common) is due to much larger selling by the foreign investors. 


A Pair Trade Between LG Chem (Common) And LG Chem (Preferred)

<ul>
<li>In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 2Q 2025.</li>
<li>The following five pairs (between common and prefs) have experienced more than 10% difference in their share prices in the past six months. </li>
<li>These five pairs (LG Chem, Amorepacific Corp, Amorepacific Group, CJ Cheiljedang, and Korea Investment Holdings) are more likely to revert to closing their gaps in the coming weeks. </li>
</ul>


In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 2Q 2025.
The following five pairs (between common and prefs) have experienced more than 10% difference in their share prices in the past six months. 
These five pairs (LG Chem, Amorepacific Corp, Amorepacific Group, CJ Cheiljedang, and Korea Investment Holdings) are more likely to revert to closing their gaps in the coming weeks. 


Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 2Q 2025

Equity Derivatives and Volatility Specialist, Clifton Derivatives

John Ley

Equity Derivatives and Volatility Specialist

Clifton Derivatives

Independent derivative and volatility research firm focusing on events/catalysts, earnings, relative value and cross asset volatility strategies.

Equity Derivatives

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hong-kong-hang-seng-index" target="_blank" data-smartkarma-citation="entities:22899" rel="noopener">Hang Seng Index (HSI INDEX)</a>, <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-index" target="_blank" data-smartkarma-citation="entities:22906" rel="noopener">Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY)</a> and <a href="https://www.smartkarma.com/entities/nikkei-225" target="_blank" data-smartkarma-citation="entities:22909" rel="noopener">Nikkei 225 (NKY INDEX)</a> all have elevated implied vols vs their peers and vs historical observations for October.</li>
<li>
<a href="https://www.smartkarma.com/entities/nifty-index" target="_blank" data-smartkarma-citation="entities:23617" rel="noopener">NIFTY Index (NIFTY INDEX)</a> , <a href="https://www.smartkarma.com/entities/s-p-500-index" target="_blank" data-smartkarma-citation="entities:22886" rel="noopener">S&amp;P 500 INDEX (SPX INDEX)</a> and <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a>  implied vols are on the low end of what is typically realized in October.</li>
<li>Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.</li>
</ul>



Hang Seng Index (HSI INDEX), Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX EQUITY) and Nikkei 225 (NKY INDEX) all have elevated implied vols vs their peers and vs historical observations for October.

NIFTY Index (NIFTY INDEX) , S&amp;P 500 INDEX (SPX INDEX) and S&amp;P/ASX 200 (AS51 INDEX)  implied vols are on the low end of what is typically realized in October.
Most markets see price weakness in the 3rd week of the month with realized volatility underperforming over the back half of the month.


EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

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.

Equity Capital Markets

<ul>
<li>With this new rule, the FSS is flagging shaky rights offerings early, signaling a likely correction request—and often, the first step toward the deal getting axed.</li>
<li>Spot the red flags early and use the window before the FSS drops the hammer to position for a reversal play.</li>
<li>The FSS’s early notice makes a reversal likely as traders bet on the deal getting nuked after the initial disclosure drop.</li>
</ul>


With this new rule, the FSS is flagging shaky rights offerings early, signaling a likely correction request—and often, the first step toward the deal getting axed.
Spot the red flags early and use the window before the FSS drops the hammer to position for a reversal play.
The FSS’s early notice makes a reversal likely as traders bet on the deal getting nuked after the initial disclosure drop.


Korea FSS Shakes Up Rights Offerings – Special Review Rule Now Live

South Korea

LG Chem Ltd. is a chemical manufacturer. The Company's products include petrochemicals, plastic resins, and engineering plastics. LG Chem also produces industrial and electronic materials.

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LG Chem (051915 KS)

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (18 July to 1 August 2025)

The top 10 picks in this bi-weekly include Hanil Cement, LG CNS, KCC Corp, Poongsan, Paradise, Samsung Electronics, Naver, SM Entertainment, LG...

Douglas Kim

A Pair Trade Between LG Chem (Common) And LG Chem (Preferred)

In this insight, we discuss a pair trade between LG Chem (051910 KS) (common) and LG Chem (051915 KS) (preferred). We recommend going long on LG...

Douglas Kim

EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...

John Ley

Korea FSS Shakes Up Rights Offerings – Special Review Rule Now Live

Korea FSS introduces a new procedural rule with immediate effect, offering a fresh trading angle: special review for rights offerings.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (18 July to 1 August 2025)

The top 10 picks in this bi-weekly include Hanil Cement, LG CNS, KCC Corp, Poongsan, Paradise, Samsung Electronics, Naver, SM Entertainment, LG...

Douglas Kim

A Pair Trade Between LG Chem (Common) And LG Chem (Preferred)

In this insight, we discuss a pair trade between LG Chem (051910 KS) (common) and LG Chem (051915 KS) (preferred). We recommend going long on LG...

Douglas Kim

Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 2Q 2025

In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 2Q 2025. LG Chem (common vs preferred)...

Douglas Kim

EQD | Asia Monthly Vol Roadmap: Elevated IV's in CSI300 and Hang Seng Present Tactical Opportunity

​Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...

John Ley

Korea FSS Shakes Up Rights Offerings – Special Review Rule Now Live

Korea FSS introduces a new procedural rule with immediate effect, offering a fresh trading angle: special review for rights offerings.

Sanghyun Park

Implied volatility levels across key Asian indices present several tactical opportunities this month for outright or pairs trades...