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>A high-ranking official from the local financial regulatory authority has confirmed to several local media outlets that the tax benefits for the value-up program will be unveiled this month.</li>
<li>Corporate tax cuts and separate taxation on dividend income will be included. The short-term impact at the time of the announcement will likely be more significant for corporate tax cuts.</li>
<li>Local market is focused on screening large companies within the KOSPI 200 that have substantial pre-tax profits in anticipation of the corporate tax cut momentum to be announced this month.</li>
</ul>


A high-ranking official from the local financial regulatory authority has confirmed to several local media outlets that the tax benefits for the value-up program will be unveiled this month.
Corporate tax cuts and separate taxation on dividend income will be included. The short-term impact at the time of the announcement will likely be more significant for corporate tax cuts.
Local market is focused on screening large companies within the KOSPI 200 that have substantial pre-tax profits in anticipation of the corporate tax cut momentum to be announced this month.


Value-Up Tax Support Revealed by End of June: Local Market Eyes Corporate Tax Cut Beneficiaries

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

<ul>
<li>It was reported in numerous local media in Korea that FSS is investigating Kakao Mobility for a potential accounting fraud. </li>
<li>There are suspicions that Kakao Mobility may have artificially inflated its sales from 2020 to 2023 to enhance the value of the company prior to its IPO listing. </li>
<li>Given that the regulators are unlikely to make a final decision on this matter until next year, this is likely to be negative on both Kakao Mobility and Kakao Corp. </li>
</ul>


It was reported in numerous local media in Korea that FSS is investigating Kakao Mobility for a potential accounting fraud. 
There are suspicions that Kakao Mobility may have artificially inflated its sales from 2020 to 2023 to enhance the value of the company prior to its IPO listing. 
Given that the regulators are unlikely to make a final decision on this matter until next year, this is likely to be negative on both Kakao Mobility and Kakao Corp. 


Concerns About A Major Accounting Fraud at Kakao Mobility

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, I provide an updated NAV analysis of LG Corp (003550 KS) which is an indirect beneficiary of AI data center cooling system and the physical AI products/services. </li>
<li>My base case valuation of LG Corp is market cap of 33.4 trillion won or NAV per share of 216,627 won, which is 48% higher than current share price.</li>
<li>LG Electronics is a key beneficiary of higher demand for AI driven data center cooling business and LG CNS/LG Electronics are key beneficiaries of growing demand for Physical AI.</li>
</ul>


In this insight, I provide an updated NAV analysis of LG Corp (003550 KS) which is an indirect beneficiary of AI data center cooling system and the physical AI products/services. 
My base case valuation of LG Corp is market cap of 33.4 trillion won or NAV per share of 216,627 won, which is 48% higher than current share price.
LG Electronics is a key beneficiary of higher demand for AI driven data center cooling business and LG CNS/LG Electronics are key beneficiaries of growing demand for Physical AI.


LG Corp: NAV + An Indirect Beneficiary of Growing AI Data Center Cooling Systems and Physical AI

<ul>
<li>Political flow hit today: Rep. Lee So-young says after the 3rd Commercial Act amendment clears, the next leg is a revamp of the inheritance/gift tax regime.</li>
<li>Tape-Wise, this looks like a core 1H narrative. Pro-equity law tweaks will get turbocharged, and with the president prioritizing this revamp, the market won’t ignore this.</li>
<li>Samsung C&amp;T and Hyundai Motor are off the table, but LG Corp, LOTTE, and SK Inc still show sizable value gaps, making them prime targets for this narrative.</li>
</ul>


Political flow hit today: Rep. Lee So-young says after the 3rd Commercial Act amendment clears, the next leg is a revamp of the inheritance/gift tax regime.
Tape-Wise, this looks like a core 1H narrative. Pro-equity law tweaks will get turbocharged, and with the president prioritizing this revamp, the market won’t ignore this.
Samsung C&amp;T and Hyundai Motor are off the table, but LG Corp, LOTTE, and SK Inc still show sizable value gaps, making them prime targets for this narrative.


Inheritance Tax Revamp Sparks Local Tape Action: LG, Lotte, SK Still Showing Big Value Gaps

<ul>
<li>Starting next week, the tax subcommittee is set to hash out the 25% proposal, and with the opposition unlikely to block it, the 25% top rate is basically locked in.</li>
<li>The street’s treating 30% payout as base case, betting on more upside. The committee may pick it up next week, with headlines likely hitting the KRX tape fast.</li>
<li>Locals are already chasing 30%+ payout, deep-value names, with gov’t aiming for a Taiwan-style re-rating. If dividend-tax headlines drop next week, these screened names could rip.</li>
</ul>


Starting next week, the tax subcommittee is set to hash out the 25% proposal, and with the opposition unlikely to block it, the 25% top rate is basically locked in.
The street’s treating 30% payout as base case, betting on more upside. The committee may pick it up next week, with headlines likely hitting the KRX tape fast.
Locals are already chasing 30%+ payout, deep-value names, with gov’t aiming for a Taiwan-style re-rating. If dividend-tax headlines drop next week, these screened names could rip.


Korea's 25% Dividend Tax Basically Locked In, Market Now Trading the 30% Payout Angle

South Korea

LG Corp. is a holding company, which operates subsidiaries including LG Electronics, LG Household & Health Care, LG Chem Ltd., and Dacom Corp. The Company's main business areas are electronics, chemicals, and household products manufacturing and telecommunications services.

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LG Corp (003550 KS)

Value-Up Tax Support Revealed by End of June: Local Market Eyes Corporate Tax Cut Beneficiaries

A high-ranking official confirmed that tax cut incentives for the value-up program will be unveiled by the end of this month. This post...

Sanghyun Park

Concerns About A Major Accounting Fraud at Kakao Mobility

FSS is investigating Kakao Mobility for a potential, major accounting fraud. There are suspicions that Kakao Mobility may have artificially...

Douglas Kim

LG Corp: NAV + An Indirect Beneficiary of Growing AI Data Center Cooling Systems and Physical AI

In this insight, I provide an updated NAV analysis of LG Corp (003550 KS) which is an indirect beneficiary of AI data center cooling system and the...

Douglas Kim

Inheritance Tax Revamp Sparks Local Tape Action: LG, Lotte, SK Still Showing Big Value Gaps

This post flags the inheritance tax revamp, which is driving local tape action today, with LG, Lotte, and SK still showing sizable value gaps.

Sanghyun Park

Korea's 25% Dividend Tax Basically Locked In, Market Now Trading the 30% Payout Angle

Both parties locked in a new divvy-tax top band: a KRW 5bn+ lane getting hit with a 30% take-rate, though the real cap is basically 25% since...

Sanghyun Park

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