Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Thematic (Sector/Industry)

<p>This year appears to be an exciting year for IPOs in Korea, barring a dramatic downturn in global equities markets like the one we experienced in 2008. In this report, we highlight some of the major IPOs that are in the pipeline for 2016. Recapping 2015, there were 128 companies in Korea that completed IPOs (including 19 new listings in KOSPI and 109 new listings in KOSDAQ markets). </p><p>The IPO market in Korea is off to a solid start. JS Corporation (194370KS), a leading ODM (original design…</p>

This year appears to be an exciting year for IPOs in Korea, barring a dramatic downturn in global equities markets like the one we experienced in 2008. In this report, we highlight some of the major IPOs that are in the pipeline for 2016. Recapping 2015, there were 128 companies in Korea that completed IPOs (including 19 new listings in KOSPI and 109 new listings in KOSDAQ markets). The IPO market in Korea is off to a solid start. JS Corporation (194370KS), a leading ODM (original design…

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>In this insight, I highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 2Q 2026.</li>
<li>I provide five holdco/opco pairs that have experienced noticeable divergence in the past three months and we expect closing of their gaps could occur in the next several weeks.</li>
<li>Of the 38 pairs, five of them are near or more than 2 standard deviations (in terms of their changing share price movements in the past three months).</li>
</ul>


In this insight, I highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in 2Q 2026.
I provide five holdco/opco pairs that have experienced noticeable divergence in the past three months and we expect closing of their gaps could occur in the next several weeks.
Of the 38 pairs, five of them are near or more than 2 standard deviations (in terms of their changing share price movements in the past three months).


Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2026

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>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

HD Korea Shipbuilding & Offshore Engineering / Event-Driven

HD Korea Shipbuilding & Offshore Engineering (009540 KS)

HD Korea Shipbuilding & Offshore Engineering

<ul>
<li>Market sniffing policy push; low-float names flagged as junk risk with skewed control. Desks circling, Palliser hit early—LG Chem trade popped, timing spot on.</li>
<li>Trade setup: screen &gt;₩1tn caps with low float, parent stakes 60–80%. Policy push likely forces stake cuts, driving float higher and squeezing NAV discounts—LG Chem shows the play.</li>
<li>Screening &gt;₩1tn caps flags 11 names: parents hold 60–80%. All potential stake-sale plays to boost float, squeeze NAV discount.</li>
</ul>


Market sniffing policy push; low-float names flagged as junk risk with skewed control. Desks circling, Palliser hit early—LG Chem trade popped, timing spot on.
Trade setup: screen &gt;₩1tn caps with low float, parent stakes 60–80%. Policy push likely forces stake cuts, driving float higher and squeezing NAV discounts—LG Chem shows the play.
Screening &gt;₩1tn caps flags 11 names: parents hold 60–80%. All potential stake-sale plays to boost float, squeeze NAV discount.


Korea’s Next Policy Play: NAV Discount Squeeze on Low‑Float Large Caps

<ul>
<li>In yesterday's hearing, Lotte skipped alternatives and signaled treasury burn, seen as bowing to political pressure, sparking a notable NXT post-market reaction.</li>
<li>The mandatory treasury burn story hinges on major local holdings and their follow-through. Lotte’s hearing gave a live read, boosting the narrative’s traction in the near-term local market.</li>
<li>Traders’ takeaway: holding cos with large treasury stakes could outperform, signaling a chance for outright longs, relative weight plays, or NAV discount tightening—time to get more aggressive locally.</li>
</ul>


In yesterday's hearing, Lotte skipped alternatives and signaled treasury burn, seen as bowing to political pressure, sparking a notable NXT post-market reaction.
The mandatory treasury burn story hinges on major local holdings and their follow-through. Lotte’s hearing gave a live read, boosting the narrative’s traction in the near-term local market.
Traders’ takeaway: holding cos with large treasury stakes could outperform, signaling a chance for outright longs, relative weight plays, or NAV discount tightening—time to get more aggressive locally.


Treasury Burn Story Hits a Milestone—Lotte Serves up the Ruling Party’s Playbook at the Hearing

South Korea

LOTTE Corporation is a pure holding company of Lotte Group Korea. It was established in 2017. Lotte Group Korea develops various high quality products and services in the five main business areas: food production/sales, distribution, sightseeing service, heavy chemical/construction and finance/investment.

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LOTTE Corporation (004990 KS)

2016 Major IPOs Pipeline in Korea

This year appears to be an exciting year for IPOs in Korea, barring a dramatic downturn in global equities markets like the one we experienced in...

Douglas Kim

Korean Holdcos Vs Opcos Gap Trading Opportunities in 2Q 2026

In this insight, I highlight the recent pricing gap divergences of the major Korean holdcos and opcos which could provide trading opportunities in...

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 Next Policy Play: NAV Discount Squeeze on Low‑Float Large Caps

This post lays out a live watchlist for NAV discount traders as Korea’s policy narrative shifts to low‑float large caps.

Sanghyun Park

Treasury Burn Story Hits a Milestone—Lotte Serves up the Ruling Party’s Playbook at the Hearing

This post highlights a key milestone in the treasury burn story—Lotte Holdings handed the market the ruling party’s playbook at yesterday’s hearing.

Sanghyun Park

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