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.

Index Rebalance

<ul>
<li>Add delete came in heavier than expected, ETF AUM close to 4tn won, driving meaningful flow impact and sharp reaction given light positioning and low pre visibility.</li>
<li>Beyond adds and deletes, the 15 percent cap reweighting in Samsung Electronics and Hynix adds another meaningful layer of passive flow driven demand and supply pressure.</li>
<li>22 names screen high passive impact, with 7 add delete flags. SK Square stands out with back to back ETF flows, driving two day flow driven distortion into the setup.</li>
</ul>


Add delete came in heavier than expected, ETF AUM close to 4tn won, driving meaningful flow impact and sharp reaction given light positioning and low pre visibility.
Beyond adds and deletes, the 15 percent cap reweighting in Samsung Electronics and Hynix adds another meaningful layer of passive flow driven demand and supply pressure.
22 names screen high passive impact, with 7 add delete flags. SK Square stands out with back to back ETF flows, driving two day flow driven distortion into the setup.


KRX Value Up June Rebal: 22 Names High Passive Impact, SK Square Stands Out

<ul>
<li>Market cap dispersion already makes June rebalance fairly visible, with SK Square and Samsung C&amp;T likely in, Celltrion and Naver out, plus cap driven flow spillover into financials.</li>
<li>FnGuide has been adjusting ETF rules amid inflows, including a major TIGER Korea Top 10 overhaul that excluded intermediate holdcos such as SK Square.</li>
<li>But FnGuide indicates no near term rule change risk here, and with timing already tight, base case remains SK Square inclusion in KODEX Top5Plus.</li>
</ul>


Market cap dispersion already makes June rebalance fairly visible, with SK Square and Samsung C&amp;T likely in, Celltrion and Naver out, plus cap driven flow spillover into financials.
FnGuide has been adjusting ETF rules amid inflows, including a major TIGER Korea Top 10 overhaul that excluded intermediate holdcos such as SK Square.
But FnGuide indicates no near term rule change risk here, and with timing already tight, base case remains SK Square inclusion in KODEX Top5Plus.


A Clean June Passive Flow Setup: Samsung C&T and SK Square

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li><em><strong>My updated NAV analysis of SK Square (402340 KS) suggests NAV per share of 1,283,115 per share which represents a 29% upside from current price.</strong></em></li>
<li>SK Square currently has a market cap of 130.8 trillion won. SK Square's stake in SK Hynix is worth 158% of its market cap.</li>
<li>Comparison of SK Square/SK Telecom horizontal spin-off and LG Chem/LG Energy Solution company split-off shows the clear benchmarks of the right vs wrong way to separate companies in Korea.</li>
</ul>


My updated NAV analysis of SK Square (402340 KS) suggests NAV per share of 1,283,115 per share which represents a 29% upside from current price.
SK Square currently has a market cap of 130.8 trillion won. SK Square's stake in SK Hynix is worth 158% of its market cap.
Comparison of SK Square/SK Telecom horizontal spin-off and LG Chem/LG Energy Solution company split-off shows the clear benchmarks of the right vs wrong way to separate companies in Korea.


Updated NAV Analysis of SK Square + the Right Way Vs Wrong Way to Split/Spin-Off a Company in Korea

Cross Asset Strategy

<ul>
<li>Now that Lee Jae-Myung has become new South Korean President, the uncertainty revolving who will lead South Korea in the next five years is now over.</li>
<li>In this insight, we discuss four investment themes (related to Lee Jae-Myung becoming the new South Korean President) that could outperform the market for the remainder of 2025.</li>
<li>The four investment themes include Korean Holdcos/Quasi Holdcos, Korean Cultural Contents, Securities, and SK Group Companies.</li>
</ul>


Now that Lee Jae-Myung has become new South Korean President, the uncertainty revolving who will lead South Korea in the next five years is now over.
In this insight, we discuss four investment themes (related to Lee Jae-Myung becoming the new South Korean President) that could outperform the market for the remainder of 2025.
The four investment themes include Korean Holdcos/Quasi Holdcos, Korean Cultural Contents, Securities, and SK Group Companies.


Lee Jae-Myung Becomes the New South Korean President - Four Investment Themes That Could Outperform

<ul>
<li>Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. </li>
<li>SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.</li>
<li>Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.</li>
</ul>


Three main reasons why SK Inc is our high conviction in 2026 include mandatory cancellation of treasury shares, deep discount to NAV, and the end of divorce for Chairman Chey. 
SK Inc has 17.98 million shares in treasury, representing 24.8% of outstanding shares. Among the stocks included in KOSPI200, this is one of the highest percentage of treasury shares.
Our NAV valuation analysis suggests NAV of 28 trillion won or NAV per share of 386,469 won. This represents a 46% upside to its current price.


South Korea

SK Square Co., Ltd. operates as an investment company. The Company invests in semiconductors, information and communications technologies, and other industries. SK Square conducts businesses in South Korea.

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

SK Square (402340 KS)

KRX Value Up June Rebal: 22 Names High Passive Impact, SK Square Stands Out

KRX Value Up June rebalance screens 22 names for outsized passive impact with SK Square standing out on flow sensitivity and setup.

Sanghyun Park

A Clean June Passive Flow Setup: Samsung C&T and SK Square

This post looks into a relatively clean June passive flow setup, with Samsung C&T and SK Square emerging as the key names in focus.

Sanghyun Park

Updated NAV Analysis of SK Square + the Right Way Vs Wrong Way to Split/Spin-Off a Company in Korea

My updated NAV analysis of SK Square (402340 KS) suggests NAV per share of 1,283,115 per share which represents a 29% upside from current price.

Douglas Kim

Lee Jae-Myung Becomes the New South Korean President - Four Investment Themes That Could Outperform

In this insight, we discuss four investment themes (related to Lee Jae-Myung becoming the new South Korean President) that could outperform the...

Douglas Kim

2026 High Conviction Idea: SK Inc

SK Inc (034730 KS) just announced that it will cancel about 20% of its outstanding shares, representing 4.8 trillion won ($3.3 billion). This is...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)