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>Today’s FSS IFRS17 ruling is an accounting fix (equity vs. liability), not the Samsung Life Law, which is a regulatory cap on affiliate stakes based on market value.</li>
<li>The FSS ruling signals Samsung Life doesn’t need to treat its Samsung Electronics stake as a forced-sale liability, lowering near-term sale risk.</li>
<li>This eases the overhang, delays potential stake moves, and reinforces the relative underperformance setup on Samsung C&amp;T highlighted in earlier posts.</li>
</ul>


Today’s FSS IFRS17 ruling is an accounting fix (equity vs. liability), not the Samsung Life Law, which is a regulatory cap on affiliate stakes based on market value.
The FSS ruling signals Samsung Life doesn’t need to treat its Samsung Electronics stake as a forced-sale liability, lowering near-term sale risk.
This eases the overhang, delays potential stake moves, and reinforces the relative underperformance setup on Samsung C&amp;T highlighted in earlier posts.


Clearing up the FSS’s Sudden Call on Samsung Life’s Samsung Elec Stake Accounting Shift

<ul>
<li>KRX’s prelim review forced Biologics into tough commitments: no share swaps or carve-out IPOs for three years, effectively blocking any Samsung C&amp;T stake sell-down and overlapping-listing risks.</li>
<li>FSS appears satisfied with Biologics’ aggressive commitments, but may push for more—most likely a lock-up from Samsung C&amp;T preventing share sales in both parent and spinco for a set period.</li>
<li>Trading setup remains short Samsung C&amp;T; recent Life bill chatter is noise. Samsung governance reform is low-priority, and Biologics’ aggressive spinco lock-ups reinforce C&amp;T as the near-term underperformer.</li>
</ul>


KRX’s prelim review forced Biologics into tough commitments: no share swaps or carve-out IPOs for three years, effectively blocking any Samsung C&amp;T stake sell-down and overlapping-listing risks.
FSS appears satisfied with Biologics’ aggressive commitments, but may push for more—most likely a lock-up from Samsung C&amp;T preventing share sales in both parent and spinco for a set period.
Trading setup remains short Samsung C&amp;T; recent Life bill chatter is noise. Samsung governance reform is low-priority, and Biologics’ aggressive spinco lock-ups reinforce C&amp;T as the near-term underperformer.


Biologics Spinco Filing: Posts Far More Aggressive Post-Listing Share Swap Lock-Up Than Expected

<ul>
<li>One of the hottest local plays is gauging KRX and FSS leanings on Biologics split, which could drive short-term alpha across the three Samsung names alongside battery and HBM flows.</li>
<li>Short-Term focus is KRX pre-listing review and FSS registration window. Once approval and lock-up kick in, Biologics and Samsung Electronics could outperform Samsung C&amp;T.</li>
<li>From a risk-hedge angle, this is a long-short alpha setup: if the split fails, Samsung C&amp;T likely takes the hit, offering alpha potential both ways.</li>
</ul>


One of the hottest local plays is gauging KRX and FSS leanings on Biologics split, which could drive short-term alpha across the three Samsung names alongside battery and HBM flows.
Short-Term focus is KRX pre-listing review and FSS registration window. Once approval and lock-up kick in, Biologics and Samsung Electronics could outperform Samsung C&amp;T.
From a risk-hedge angle, this is a long-short alpha setup: if the split fails, Samsung C&amp;T likely takes the hit, offering alpha potential both ways.


Current Samsung Biologics Split Dynamics with Alpha Potential Both Ways

<ul>
<li>Jay Lee’s clean Supreme Court win may cool Samsung’s governance trade near term. With legal risks gone, there’s less urgency to push structural changes or shuffle shares now.</li>
<li>Samsung C&amp;T, a hotspot for governance spec flows, may see bids fade as urgency for structural shifts drops; longs on revamp bets might consider fading or shorting amid lingering risks.</li>
<li>Samsung Life gets relief as forced Elec share sales drop, supporting its stock. Samsung Elec stays neutral. Trade idea: Samsung Life long, Samsung C&amp;T short on cooled governance hopes.</li>
</ul>


Jay Lee’s clean Supreme Court win may cool Samsung’s governance trade near term. With legal risks gone, there’s less urgency to push structural changes or shuffle shares now.
Samsung C&amp;T, a hotspot for governance spec flows, may see bids fade as urgency for structural shifts drops; longs on revamp bets might consider fading or shorting amid lingering risks.
Samsung Life gets relief as forced Elec share sales drop, supporting its stock. Samsung Elec stays neutral. Trade idea: Samsung Life long, Samsung C&amp;T short on cooled governance hopes.


Samsung Jay Lee Cleared by Supreme Court — Market Reaction Could Flip From Consensus

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Shinhan Financial / Equity Capital Markets

<ul>
<li>Affinity Equity Partners is looking to raise around US$425m via selling 1.9% of its stake in <a href="https://www.smartkarma.com/entities/shinhan-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:6978:1" rel="noopener">Shinhan Financial (055550 KS).</a>
</li>
<li>Affinity had sold half of its stake earlier in 2024, when the company witnessed a number of selldowns in 1H24.</li>
<li>In this note, we will talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>


Affinity Equity Partners is looking to raise around US$425m via selling 1.9% of its stake in Shinhan Financial (055550 KS).

Affinity had sold half of its stake earlier in 2024, when the company witnessed a number of selldowns in 1H24.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.


Shinhan Financial Group Placement - Clean-Up Trade but Stock Is at All Time-Highs

South Korea

Samsung C&T Corporation conducts diversified business support services and resort operation activities. The Company offers a range of services in areas including clothing retail, construction, energy, real estate, food service, and resort accommodations. Samsung C&T also operates a resort with amusement rides, a zoo, water park, golf clubs, and restaurants.

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

Samsung C&T (028260 KS)

Clearing up the FSS’s Sudden Call on Samsung Life’s Samsung Elec Stake Accounting Shift

This post clarifies FSS's sudden call today and clears up misunderstandings about Samsung Life’s Samsung Electronics stake accounting change.

Sanghyun Park

Current Samsung Biologics Split Dynamics with Alpha Potential Both Ways

This post covers the current Samsung Biologics split dynamics, highlighting how the setup offers alpha potential in both directions

Sanghyun Park

Samsung Jay Lee Cleared by Supreme Court — Market Reaction Could Flip From Consensus

Samsung Jay Lee’s final legal overhang just got wiped clean with the Supreme Court’s not-guilty stamp — but the market move might actually play out...

Sanghyun Park

Shinhan Financial Group Placement - Clean-Up Trade but Stock Is at All Time-Highs

Affinity Equity Partners is looking to raise around US$425m via selling 1.9% of its stake in Shinhan Financial (055550 KS).

Sumeet Singh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Clearing up the FSS’s Sudden Call on Samsung Life’s Samsung Elec Stake Accounting Shift

This post clarifies FSS's sudden call today and clears up misunderstandings about Samsung Life’s Samsung Electronics stake accounting change.

Sanghyun Park

Biologics Spinco Filing: Posts Far More Aggressive Post-Listing Share Swap Lock-Up Than Expected

This post covers Samsung Biologics’ spinco filing, which imposes a far-tougher-than-expected post-listing share swap lock-up.

Sanghyun Park

Current Samsung Biologics Split Dynamics with Alpha Potential Both Ways

This post covers the current Samsung Biologics split dynamics, highlighting how the setup offers alpha potential in both directions

Sanghyun Park

Samsung Jay Lee Cleared by Supreme Court — Market Reaction Could Flip From Consensus

Samsung Jay Lee’s final legal overhang just got wiped clean with the Supreme Court’s not-guilty stamp — but the market move might actually play out...

Sanghyun Park

Shinhan Financial Group Placement - Clean-Up Trade but Stock Is at All Time-Highs

Affinity Equity Partners is looking to raise around US$425m via selling 1.9% of its stake in Shinhan Financial (055550 KS).

Sumeet Singh