Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>WSJ reported that Amazon and other major multinational in the US are actively considering on potentially issuing their own stablecoins. This could negatively impact card issuers such as Samsung Card. </li>
<li>Once stablecoins are legally approved in South Korea and some of the major merchants in Korea start to use stablecoins, the current revenue streams of Samsung Card could get disrupted.</li>
<li>Although the exact levels of revenue disruption still remain uncertain, many investors do not like uncertainty which means that some investors could start to reduce their holdings on Samsung Card. </li>
</ul>


WSJ reported that Amazon and other major multinational in the US are actively considering on potentially issuing their own stablecoins. This could negatively impact card issuers such as Samsung Card. 
Once stablecoins are legally approved in South Korea and some of the major merchants in Korea start to use stablecoins, the current revenue streams of Samsung Card could get disrupted.
Although the exact levels of revenue disruption still remain uncertain, many investors do not like uncertainty which means that some investors could start to reduce their holdings on Samsung Card. 


Why Amazon Issuing Stablecoins Could Negatively Impact Samsung Card's Share Price

Cross Asset Strategy

<ul>
<li>On 28 November, the Korean National Assembly reached an agreement on a tax reform plan to officially lower taxes on dividends income. </li>
<li>The decline in tax on dividends is a definite step in the right direction. Nonetheless, the top bracket dividend tax rate cut was slightly less than what market was expecting. </li>
<li>Given that about 15%-25% dividend tax rates are more common in other developed countries,  Korea's reduction of dividend taxes is likely to be welcomed highly by many global investors.</li>
</ul>


On 28 November, the Korean National Assembly reached an agreement on a tax reform plan to officially lower taxes on dividends income. 
The decline in tax on dividends is a definite step in the right direction. Nonetheless, the top bracket dividend tax rate cut was slightly less than what market was expecting. 
Given that about 15%-25% dividend tax rates are more common in other developed countries,  Korea's reduction of dividend taxes is likely to be welcomed highly by many global investors.


Top Bracket Dividend Tax Rate Lowered to 30% in Korea [Moderately Positive]

<ul>
<li>Democratic Party lawmaker Kim Hyun-jung has introduced a revised Income Tax Act that would lower the top tax rate on dividend income from 35% to 25%.</li>
<li>Given that this proposal is coming from the ruling Democratic Party, there is a fairly high probability that this could be passed into law in 3Q 2025.</li>
<li>We provide a list of 28 mid-cap/large cap stocks in Korea with more than 35% dividend payout and 3% or more dividend yield that could benefit from this new proposal.</li>
</ul>


Democratic Party lawmaker Kim Hyun-jung has introduced a revised Income Tax Act that would lower the top tax rate on dividend income from 35% to 25%.
Given that this proposal is coming from the ruling Democratic Party, there is a fairly high probability that this could be passed into law in 3Q 2025.
We provide a list of 28 mid-cap/large cap stocks in Korea with more than 35% dividend payout and 3% or more dividend yield that could benefit from this new proposal.


Separate Dividend Tax Plan in Korea: A Push for a 25% Rate for Top Bracket

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass).</li>
<li>We will maintain our bullish view as long as market dynamics remain healthy and the SPX and ACWI-US are above 5700-5785 and $120-$121 (up from 5500 and $115).</li>
<li>We are upgrading Korea(KOSPI) to overweight; we discussed May 30 several Financials and other stocks to buy. KOSPI has exploded higher since, and is now reversing its 2-year RS downtrend.</li>
</ul>


We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass).
We will maintain our bullish view as long as market dynamics remain healthy and the SPX and ACWI-US are above 5700-5785 and $120-$121 (up from 5500 and $115).
We are upgrading Korea(KOSPI) to overweight; we discussed May 30 several Financials and other stocks to buy. KOSPI has exploded higher since, and is now reversing its 2-year RS downtrend.


Upgrading Korea to Overweight; MSCI ACWI and Emerging Market Breakouts

<ul>
<li>On 27 March, it was announced that Hotel Shilla (008770 KS)'s CEO Lee Boo-Jin  plans to purchase 20 billion won (US$13.3 million) worth of treasury shares.</li>
<li>Hotel Shilla's CEO Lee Boo-Jin's decision to purchase 20 billion won worth of treasury shares is clearly positive in the near term since it is first time purchase for her.</li>
<li>However, Hotel Shilla continues to have poor, volatile profit margins. Plus, despite the additional influx of millions of foreign investors to Korea, the company's sales growth and profits remain poor.  </li>
</ul>


On 27 March, it was announced that Hotel Shilla (008770 KS)'s CEO Lee Boo-Jin  plans to purchase 20 billion won (US$13.3 million) worth of treasury shares.
Hotel Shilla's CEO Lee Boo-Jin's decision to purchase 20 billion won worth of treasury shares is clearly positive in the near term since it is first time purchase for her.
However, Hotel Shilla continues to have poor, volatile profit margins. Plus, despite the additional influx of millions of foreign investors to Korea, the company's sales growth and profits remain poor.  


Hotel Shilla: CEO Lee Boo-Jin Plans to Buy 20 Billion Won Worth of Stock + End of Inheritance Tax

South Korea

Samsung Card Co., Ltd. offers credit card services such as issuing cards, one time payments, installments, and cash advance services. The Company also provides other financial services such as leasing and loan services.

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Samsung Card Co (029780 KS)

Top Bracket Dividend Tax Rate Lowered to 30% in Korea [Moderately Positive]

On 28 November, the Korean National Assembly reached an agreement on a tax reform plan to officially lower taxes on dividends income.

Douglas Kim

Separate Dividend Tax Plan in Korea: A Push for a 25% Rate for Top Bracket

The final decision to lower top bracket dividend tax from 35% to 25% could be made in the next several days. There have been increasing local news...

Douglas Kim

Upgrading Korea to Overweight; MSCI ACWI and Emerging Market Breakouts

MSCI $ACWI and Emerging Market $EEM Breakouts; Upgrading Korea $EWY to Overweight; Downgrading Broad Europe, but staying Overweight Germany,...

Vermilion Research

Hotel Shilla: CEO Lee Boo-Jin Plans to Buy 20 Billion Won Worth of Stock + End of Inheritance Tax

On 27 March, it was announced that Hotel Shilla (008770 KS)'s CEO Lee Boo-Jin plans to purchase 20 billion won (US$13.3 million) worth of treasury...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Why Amazon Issuing Stablecoins Could Negatively Impact Samsung Card's Share Price

WSJ reported that Amazon and other major multinational in the US are actively considering on potentially issuing their own stablecoins. This could...

Douglas Kim

Top Bracket Dividend Tax Rate Lowered to 30% in Korea [Moderately Positive]

On 28 November, the Korean National Assembly reached an agreement on a tax reform plan to officially lower taxes on dividends income.

Douglas Kim

Separate Dividend Tax Plan in Korea: A Push for a 25% Rate for Top Bracket

The final decision to lower top bracket dividend tax from 35% to 25% could be made in the next several days. There have been increasing local news...

Douglas Kim

Upgrading Korea to Overweight; MSCI ACWI and Emerging Market Breakouts

MSCI $ACWI and Emerging Market $EEM Breakouts; Upgrading Korea $EWY to Overweight; Downgrading Broad Europe, but staying Overweight Germany,...

Vermilion Research

Hotel Shilla: CEO Lee Boo-Jin Plans to Buy 20 Billion Won Worth of Stock + End of Inheritance Tax

On 27 March, it was announced that Hotel Shilla (008770 KS)'s CEO Lee Boo-Jin plans to purchase 20 billion won (US$13.3 million) worth of treasury...

Douglas Kim