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 next two weeks (10 to 24 October 2025).</li>
<li>Top 10 picks in this bi-weekly include Samsung Electronics, Samsung Life Insurance, LG CNS, SK Hynix, KT&amp;G, Naver, Samsung C&amp;T, LG Uplus, Hyundai Elevator, and SK Inc. </li>
<li>The semiconductor sector was a big winner in the past two weeks. Some of the best performing stocks in this period include SK Hynix, Samsung Electronics, and Hanmi Semiconductor. </li>
</ul>


In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (10 to 24 October 2025).
Top 10 picks in this bi-weekly include Samsung Electronics, Samsung Life Insurance, LG CNS, SK Hynix, KT&amp;G, Naver, Samsung C&amp;T, LG Uplus, Hyundai Elevator, and SK Inc. 
The semiconductor sector was a big winner in the past two weeks. Some of the best performing stocks in this period include SK Hynix, Samsung Electronics, and Hanmi Semiconductor. 


Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (10 to 24 October 2025)

Samsung Electronics Pref Shares / Equity Bottom-Up

<ul>
<li>In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 4Q 2025.</li>
<li>The preferred companies' share price discount (relative to the common shares) on the 27 pairs below was 36% at the end of September 2025.</li>
<li>On a longer timeframe (3-5 years), this discount could narrow further to the 20-25% range, which provides additional opportunities for the Korean preferred shares to further make relative gains.</li>
</ul>


In this insight, we discuss numerous gap trade opportunities involving Korean preferred and common shares in 4Q 2025.
The preferred companies' share price discount (relative to the common shares) on the 27 pairs below was 36% at the end of September 2025.
On a longer timeframe (3-5 years), this discount could narrow further to the 20-25% range, which provides additional opportunities for the Korean preferred shares to further make relative gains.


Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 4Q 2025

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

Samsung Electronics Pref Shares / Event-Driven

<ul>
<li>Pref spread looks stretched near 21–22%, likely a pullback soon. Structural re-rate needs a major Samsung narrative shift.</li>
<li>A surprise Samsung special dividend could pivot the pref discount; H2 FCF, Q3 prelims, and lighter capex are the key swing factors.</li>
<li>Expect a short-term pullback; but still stay cautious. Watch the memory upcycle and consider a discount-narrowing trade around late September.</li>
</ul>


Pref spread looks stretched near 21–22%, likely a pullback soon. Structural re-rate needs a major Samsung narrative shift.
A surprise Samsung special dividend could pivot the pref discount; H2 FCF, Q3 prelims, and lighter capex are the key swing factors.
Expect a short-term pullback; but still stay cautious. Watch the memory upcycle and consider a discount-narrowing trade around late September.


Timing a Structural Pivot in Samsung's Max Stretched Pref Discount: Potential Special Dividend

<ul>
<li>The A16 chip Samsung fabs is mainly for real-time inference in Tesla’s FSD cars, not data-center training, which remains dominated by Dojo and NVIDIA hardware.</li>
<li>If Tesla’s deal includes AI chips with HBM, it’s a major catalyst; if just A16, it’s not proof HBM yield issues are solved.</li>
<li>Tesla’s deal isn’t a sure sign Samsung’s HBM4 passed NVIDIA’s qual tests, but it’s a key reference boosting market hype—time to consider a Samsung long, SK Hynix short setup.</li>
</ul>


The A16 chip Samsung fabs is mainly for real-time inference in Tesla’s FSD cars, not data-center training, which remains dominated by Dojo and NVIDIA hardware.
If Tesla’s deal includes AI chips with HBM, it’s a major catalyst; if just A16, it’s not proof HBM yield issues are solved.
Tesla’s deal isn’t a sure sign Samsung’s HBM4 passed NVIDIA’s qual tests, but it’s a key reference boosting market hype—time to consider a Samsung long, SK Hynix short setup.


My Take on Samsung’s Big Foundry Deal with Tesla

<ul>
<li>Three major reasons why Samsung Electronics is our 2025 high conviction pick include attractive valuations, reduced concerns about inheritance tax overhang, and higher likely total shareholder returns.</li>
<li>Given that 2025 will be the last year of major inheritance tax payment for the Lee family, this reduced overhang could act as a positive sentiment on Samsung Electronics.</li>
<li>Pressures on Samsung to announce material improvement to shareholder returns are coming not just from existing shareholders but also from the Korean government due to Korea Corporate Value Up program.</li>
</ul>


Three major reasons why Samsung Electronics is our 2025 high conviction pick include attractive valuations, reduced concerns about inheritance tax overhang, and higher likely total shareholder returns.
Given that 2025 will be the last year of major inheritance tax payment for the Lee family, this reduced overhang could act as a positive sentiment on Samsung Electronics.
Pressures on Samsung to announce material improvement to shareholder returns are coming not just from existing shareholders but also from the Korean government due to Korea Corporate Value Up program.


2025 High Conviction: Samsung Electronics

South Korea

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

Samsung Electronics Pref Shares (005935 KS)

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Samsung Electronics Pref Shares (005935 KS)

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (10 to 24 October 2025)

In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (10 to 24 October 2025).

Douglas Kim

Timing a Structural Pivot in Samsung's Max Stretched Pref Discount: Potential Special Dividend

This post explores the timing of a structural pivot in Samsung’s max-stretched preferred share discount, factoring in the potential for a special...

Sanghyun Park

My Take on Samsung’s Big Foundry Deal with Tesla

This post shares my take on Samsung’s big foundry win with Tesla, breaking down what the deal means for Samsung’s stock play.

Sanghyun Park

2025 High Conviction: Samsung Electronics

According to industry sources, Samsung Electronics has reportedly passed NVIDIA's HBM3E 12-layer quality test and received a verbal order. So far,...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (10 to 24 October 2025)

In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (10 to 24 October 2025).

Douglas Kim

Gap Trade Opportunities in Korean Prefs Vs Common Share Pairs in 4Q 2025

The preferred companies' share price discount (relative to the common shares) on the 27 pairs below was 36% at the end of September 2025, from...

Douglas Kim

Timing a Structural Pivot in Samsung's Max Stretched Pref Discount: Potential Special Dividend

This post explores the timing of a structural pivot in Samsung’s max-stretched preferred share discount, factoring in the potential for a special...

Sanghyun Park

My Take on Samsung’s Big Foundry Deal with Tesla

This post shares my take on Samsung’s big foundry win with Tesla, breaking down what the deal means for Samsung’s stock play.

Sanghyun Park

2025 High Conviction: Samsung Electronics

According to industry sources, Samsung Electronics has reportedly passed NVIDIA's HBM3E 12-layer quality test and received a verbal order. So far,...

Douglas Kim