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

<ul>
<li>Korea Value-Up Index outperformed KOSPI, KOSPI200, and KOSDAQ in the past year, resulting in further interest in the index. </li>
<li>The announcement of the Korea Value-Up Index rebalance for this year to be announced in the last week of May and the rebalance date is expected around mid-June 2026.</li>
<li>In this insight, we provided a list of top 10 potential inclusions and top 10 exclusions in the Korea Value Up index rebalance in June 2026. </li>
</ul>


Korea Value-Up Index outperformed KOSPI, KOSPI200, and KOSDAQ in the past year, resulting in further interest in the index. 
The announcement of the Korea Value-Up Index rebalance for this year to be announced in the last week of May and the rebalance date is expected around mid-June 2026.
In this insight, we provided a list of top 10 potential inclusions and top 10 exclusions in the Korea Value Up index rebalance in June 2026. 


Korea Value-Up Index: Rebalancing in 2026 and Outperformance Vs KOSPI

Event-Driven

<ul>
<li>Near to mid term, the key Square vs. Hynix proxy watch is ETF inclusion—but FnGuide and KRX semis ETFs are structurally off-limits without a sector re-tag.</li>
<li>That leaves TIGER Korea Top 10 and KODEX Top 5 Plus—free-float, mkt-cap ETFs—where Square’s top-10 rank and 67% float turn inclusion from theoretical to tradable.</li>
<li>TIGER Top 10 is pure float-cap top 10; KODEX Top 5 Plus prioritizes float-cap top 5. Square ranks 4th, qualifying for both, with rebalance at June 10 close.</li>
</ul>


Near to mid term, the key Square vs. Hynix proxy watch is ETF inclusion—but FnGuide and KRX semis ETFs are structurally off-limits without a sector re-tag.
That leaves TIGER Korea Top 10 and KODEX Top 5 Plus—free-float, mkt-cap ETFs—where Square’s top-10 rank and 67% float turn inclusion from theoretical to tradable.
TIGER Top 10 is pure float-cap top 10; KODEX Top 5 Plus prioritizes float-cap top 5. Square ranks 4th, qualifying for both, with rebalance at June 10 close.


Square Now Top-5 by Float Mkt Cap, Passive Flows in Focus into June 10

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.

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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

Korea Value-Up Index: Rebalancing in 2026 and Outperformance Vs KOSPI

Korea Value-Up Index outperformed KOSPI, KOSPI200, and KOSDAQ in the past year, resulting in further interest in the index.

Douglas Kim

Square Now Top-5 by Float Mkt Cap, Passive Flows in Focus into June 10

This post flags Square as the Hynix proxy, now top-5 by float market cap, with passive flows firmly in focus into June 10.

Sanghyun Park

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