South Korea

• Dividend tax reform hits calendar: Assembly’s Strategy & Finance Committee starts hearings Nov 13; street buzzing as assembly headlines will push dividend theme.
• Ruling party resists 25% payout threshold; cutting that low kills dividend incentive, while keeping 40% pushes corporates in 20–40% band to hike payouts.
• From Thursday, dividend momentum likely drives locals into >4% yielders with >40% payout, so these names should be our near‑term targets.

• In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (7 to 21 November 2025).
• Our top 10 picks in the next two weeks include KT&G, Samsung Electronics, Samsung Life Insurance, Orion Corp, Dentium, Hanmi Pharm, LG Chem (pref), Amorepacific Corp, Daewoong Pharm, and SK.  
• Notable stocks with excellent share price performances in the past two weeks are as follows: Taihan Electric Wire (up 32.7%) Hanmi Pharm (up 29.5%), and SK Hynix (up 13.7%).

• Welcome to Curator’s Cut — a fortnightly roundup of standout themes from the 1,500+ insights published on Smartkarma. 
• In this cut, we revisit memory stocks’ stellar year, unpack results from the best pure-play gaming franchise, and spotlight airline stocks poised for lift-off.
• Want to dig deeper? Comment or message with the themes you’d like to see highlighted next.

• EQT appears to be focused on IRR, prioritizing integration over equity; TOB looks low-return, rights issue chatter spooked markets today, so TOB-driven positioning isn’t realistic near term.
• EQT also faces risks: FSS cap raise approval and a relatively light 34.85% stake limiting exit flexibility. Still, there’s a tactical angle in play.
• EQT skipping TOB, but stealthy on-screen buys could spark a flow bounce; local market still eyes short-term setup trade on gradual stake-building.

• CMTX finalized its IPO price at 60,500, the high end of the IPO price range. The book building process saw participation from 2,423 institutions. Demand ratio was 756.19 to 1. 
• Our base case valuation of CMTX is implied market cap of 1.0 trillion won or 106,847 won per share (65% higher than the IPO price). 
• Given the excellent upside, we have a Positive View of this IPO. The 71.8% shares that are under lock-up periods is high and this suggests a very bullish sign. 

• On 7 November, it was announced that EQT Partners is acquiring a controlling stake (34.85%) in Douzone Bizon (012510 KS) for about 1.3 trillion won (US$900 million).
• The acquisition price is 120,000 won per share (44.9% higher than the closing price on Friday).
• There was no other announcement regarding tender offer of the remaining minority shares and some investors are likely to have bailed out after this disappointment. 

• Hugel Inc (145020 KS) has reported muted 3Q25 result, with flat revenue and profits decreasing compared to year-ago period. Domestic revenue decreased 19% YoY and dragged overall 3Q25 result.
• However, strong export revenue of botulinum toxin and dermal fillers is the key bright spot in 3Q25 result. During 3Q25, international revenue grew 12% YoY.
• Since declaring 2Q result, Hugel shares plunged ~40%. More downside cannot be ruled out. 4Q result showing recovering domestic business and improved profitability under new leadership should be near-term catalyst.     

• Kospi’s rally has extended seven months and now shows signs of fatigue, trading with speculative assets and now sharply diverging.
• Implied volatility is elevated, with short-term measures above the 90th percentile on multiple lookbacks.
• We recommend an option trade and hedge given the current setup.

• Since the last rebalancing of our portfolio on 5th September, it has returned 13.5% vs 9.5% from MSCI-Asia-ex-Japan. Since inception (15th May), our portfolio has appreciated 20.1% vs MXASJ’s 18.6%.
• Six stocks, SK Hynix, TSMC, Samsung Electronics, Alibaba, China Hongqiao, Tencent, contributed almost the entire return of our portfolio. Overweight on Korea drove more than half the portfolio’s return.
• We turn more selective on Chinese discretionary consumption and step into the Korean defense sector. We exclude Anta Sports and Mediatek and include Hyundai Rotem and Hon Hai Precision.

• Our base case valuation of SemiFive is implied market cap of 1.4 trillion won or target price of 42,349 won per share.
• This is 76% higher than the high end of the IPO price range (24,000 won per share). Given the excellent upside, we have a Positive View of this IPO.
• SemiFive is one of the global leaders in custom AI semiconductor (ASIC) design. Founded in 2019, SemiFive is a SoC platform company specializing in AI inference and high-performance computing (HPC) chip design.

• Retail flow drove the ratio: selling pushed it higher, buying dragged it lower. Pre‑Sept they dip‑bought and flipped; since late Sept they’ve chased longs, fueling Hynix’s rally.
• Instos joined retail chasing Hynix, juicing momentum; KRX’s investment‑alert acts as a speed bump, likely cooling hot‑money flows and tilting the ratio in Square’s favor.
• But retail still drives Hynix; until they cool off, Square NAV squeeze is early. A sector‑wide AI pivot cooling retail frenzy is the real catalyst, bigger than KRX’s alert.

• The Pinkfong Company successfully completed its IPO book building process. It finalized the IPO price at 38,000 won (high end of the IPO price range). 
• A total of 2,300 domestic and international institutions participated in the book building process. The IPO competition ratio was 615.9 to 1.  
• Our base case valuation of the Pinkfong Co is implied market cap of 671.4 billion won or target price of 46,369 won per share (over the next 6-12 months). 

• Change in local limit is a positive for SK Hynix (000660 KS) 
• Those in the local markets had to play SK Square (402340 KS) before
• The risk is that over 1/3 of KOSPI 200 is now reliant on 2 names

• There is an end of a lock-up period for 1.3 million shares (10% of outstanding shares) for d’Alba Global starting 22 November 2025.
• This could potentially result in additional selling by insiders which could negatively impact its share price in the coming weeks. We remain Bearish on d’Alba Global.
• The overall proportion of freely tradable shares, which was only 32.7% right after listing, will increase to 83.9% one year later. 

• POSCO is shifting from cyclical steel to sustainable, high-margin materials and hydrogen technologies.
• Earnings recovery and RBM scale-up underpin a 15–35% re-rating potential by FY27.
• Strong asset base, improving margins, and carbon-neutral roadmap limit downside risk.

• Dominant Market Position in High-Growth Emerging Markets: Orion holds a commanding presence in the confectionery markets of Vietnam and Russia, driven by the exceptional brand equity of its flagship product, Choco Pie. Continued capacity expansion in these regions is poised to capture further growth.
• Strong Financial Performance and Shareholder Returns: The company has demonstrated a robust track record of revenue and net income growth, coupled with a significant increase in dividend payouts. This highlights efficient operations and a commitment to returning value to shareholders.
• Diversification and Future Growth Engines: Strategic initiatives to expand into new business areas, including beverages, convenient meal replacements, and biotech, present long-term growth opportunities beyond the core confectionery segment, mitigating reliance on a single product category.

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• Hana Financial remains our buy pick among Korean banks; it is close to the top our scorecard, it remains attractively valued and its returns are improving
• Hana is trading at a large PBV discount to KB Financial; this currently stands at a 30%+ discount which is over one standard deviation from the historical PBV discount mean
• Furthermore, we see that this relatively dovish phase of monetary policy, Hana appears to have more limited downside risk than its peers in terms of further interest spread erosion

• Welcron Kangwon is undergoing a significant transformation, leveraging its legacy in the industrial boiler market to penetrate the high-growth secondary battery equipment sector. This strategic pivot has driven remarkable revenue growth, though profitability and cash flow remain volatile.
• The company is well-positioned to benefit from powerful secular tailwinds, including global industrialization, increasing demand for energy efficiency, and stricter environmental regulations. Its core products, such as waste heat recovery systems, directly address these trends.
• Despite strong top-line momentum, significant risks persist. Financial performance is characterized by fluctuating profitability and deeply negative free cash flow, raising concerns about earnings quality and financial stability. The business model’s reliance on large, project-based contracts contributes to this inherent volatility.

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• E&D Co Ltd is a high-growth, high-risk player in the burgeoning secondary battery and environmental catalyst markets. Its core value proposition lies in its proprietary technologies for producing precursors for electric vehicle (EV) batteries and catalysts for emission control.
• The company exhibits a stellar long-term revenue and net income growth trajectory, driven by strong secular tailwinds in its end markets. However, this growth has been accompanied by extreme volatility in profitability and, most critically, a consistent and severe burn of operating and free cash flow.
• An investment in E&D is a bet on the successful scaling of its operations to meet surging demand and an eventual transition to sustainable positive cash flow. The high uncertainty is balanced by the significant upside potential if the company can overcome its operational and financial challenges.

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• Shinpoong Pharmaceutical is a South Korean pharmaceutical company transitioning from a generics manufacturer to an R&D-focused entity, highlighted by its antimalarial drug Pyramax and a pipeline focused on cardiovascular and neurological diseases.
• The company has experienced significant financial headwinds, with consistent net losses and negative cash flow over the past three fiscal years, although recent quarterly results in 2025 show a marked improvement towards profitability.
• Future growth hinges on the successful clinical progression and commercialization of its key pipeline asset, Otaplimastat (SP-8203) for acute ischemic stroke, and its ability to expand its global market presence for existing products.

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• SK Bioscience (302440 KS) reports 2.5x jump in revenue and narrowing operating loss in 3Q25, driven by additional revenue contribution and improving profitability of German subsidiary, IDT Biologika.
• For 2025, SKBS guided for IDT revenue of KRW410B. With 3Q25 YTD revenue reaching KRW341B (up 19% YoY), IDT is expected to beat the guidance.
• 2026 will be crucial for the company, with couple of vaccine candidates entering late-stage trials. PCV21 global Phase 3 trial is ongoing. This should keep R&D spend elevated.

• Top Material is a South Korean company operating in the high-growth secondary battery materials sector, specifically focusing on the production of cathode active materials (CAMs), a critical component for lithium-ion batteries.
• The company is navigating a volatile market characterized by the rapid expansion of the electric vehicle (EV) and energy storage systems (ESS) industries, which are the primary demand drivers. However, this growth is tempered by intense competition, raw material price fluctuations, and evolving battery chemistries.
• Financial performance has been erratic, with strong growth in 2022 and 2023 followed by a significant downturn in 2024, reflecting industry-wide challenges. The company’s future hinges on its ability to manage costs, secure stable raw material supplies, and align its product development with the dominant battery technologies.

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• FnGuide is one of the key beneficiaries of the increased index investing in Korea. 
• Total net assets of ETFs tracking FnGuide indices surged from about 14 trillion won at the end of 2024 to about 30 trillion won as of end of October 2025.
• There has been a sharp increase in foreign ownership of FnGuide from 0.4% at the end of 2023 to 14.5% as of 3 November 2025.

• With the review period for the December rebalance complete, we highlight 17 potential changes for the KOSDAQ 150 Index (KOSDQ150 INDEX). 
• The estimated impact on the potential inclusions ranges from 0.1-3.2 days of ADV while the impact on the potential deletions varies from 0.7-11.2 days of ADV.
• The forecast adds have outperformed the forecast deletes over the last 6 months with a big move higher in the last couple of months. Trim positions into strength.

• In 3Q25, Hanwha Aerospace reported sales of 6.5 trillion won (up 146.5% YoY and 1.6% lower than consensus) and operating profit of 856.4 billion won (up 79.5% YoY).
• The company’s results in 3Q 2025 were its best ever in its history. The strong results were driven by its land defense business and its shipbuilding unit Hanwha Ocean.
• Given the company’s excellent growth in sales and profits in the past several years as well as its strong order backlog, its valuationsremain attractive. 

• Daewon Sanup’s net cash as percentage of market cap is 171%. This is one of the highest net cash/market cap ratios in the Korean stock market.
• Daewon Sanup is one of the largest Korean automobile seat manufacturers. It is also one of the beneficiaries of the reduction in US auto tariffs to 15% (from 25% previously). 
• The company is trading at dirt cheap valuations. It is trading at P/E of 2.3x and P/B of 0.4x based on LTM financials. 

• Hanmi Pharm (128940 KS) has reported mixed performance for 3Q25. Despite flat topline and high R&D investment, mid-single digit growth in operating profit is the key highlight of 3Q25 result.
• Interim topline results of Phase 3 trials for efpeglenatide have raised expectations that the drug will establish itself as a “national obesity drug” based on excellent efficacy and proven safety.
• The company submitted clinical trial application to FDA for HM17321. Hanmi received FDA approval to initiate a Phase 2 clinical trial with HM15275, which is expected to commence this month.

• Context: The Kia (000270 KS) vs. Hyundai (005380 KS) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Kia (000270 KS) and short Hyundai (005380 KS) targets a 12% return.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• With the review period complete, there could be 7 changes for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) in December.
• There may not be any intra-review changes following the Hyundai Heavy Industries/ Hyundai Mipo merger due to timing and also due to Samsung Biologics‘ spinoff being added to the index.
• The forecast adds have outperformed the forecast deletes and the KOSPI2 INDEX over the last few months and in the short-term too.

• Aequitas Research’s weekly update on the IPOs, placements, lockup expiry and other ECM linked events that were covered by the team over the past week.
• On the IPO front, there were a flurry of deal launches across Hong Kong and India.
• On the placements front, while the week was rather quiet, we did have a look at the upcoming lockup release.

• Celltrion Inc has significant underperformed over the last year and experienced a big derating.
• Good results, but the numbers fell short of expectations due to the large biosimilar hype.
• Outlook over the next five years is very promising, with its revenue target market value expected to almost double.  

• POSCO has signed a strategic partnership with Cleveland-Cliffs. POSCO is likely to invest more than 1 trillion won to purchase at least a 10% stake in Cleveland-Cliffs by early 2026.
• Local media have mentioned that POSCO is likely to invest more than 1 trillion won (US700 million) to purchase at least a 10% stake in Cleveland-Cliffs by 2026.
• Overall, we believe that a potential US$700 million investment in Cleveland-Cliffs for about 10% stake in the company could have a positive impact on POSCO.

• Shinhan Card is the largest credit card issuer in South Korea, commanding a significant market share in a mature but evolving payments landscape. The company is navigating a challenging environment of regulatory pressure on merchant fees and rising competition from fintech players.
• A key strategic focus is the digital transformation, leveraging its vast customer data to offer personalized services and expand into new platform-based businesses. This includes the growth of its ‘Shinhan SOL pay’ platform and data-driven marketing initiatives.
• Profitability has been under pressure due to increased funding costs and higher loan loss provisions amidst macroeconomic headwinds. However, the company maintains a stable capital and liquidity position, benefiting from the strong backing of its parent, Shinhan Financial Group.

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• KOFIA says Hynix hit 10.89% weight in October vs 8.37% in September, lifting the 10% fund cap — now local funds can size up like Samsung Electronics.
• SK Square might have been dumped today as locals unwound proxy trades; with Hynix freed from the 10% cap, funds rotated directly into Hynix, front‑running the shift.
• Key now is rotation size; SK Square’s beta‑plus trade to Hynix is fading, and near term we should expect relative underperformance as flows migrate.

• LG Chem is considering on paying higher dividends using sale proceeds from LG Energy Solution. 
• This breaks the company’s principle of using only ordinary income from operating activities as a source for dividends.
• If indeed LG Chem goes ahead with this plan, this would be as a result of heightened demands from major activist investors including Palliser Capital.

• There is an end of a lock-up period for 55.3 million shares (33% of outstanding shares) for SK Innovation (096770 KS) starting 20 November 2025.
• This could potentially result in additional selling by insiders which could negatively impact its share price in the coming weeks.
• SK Innovation is currently trading at relatively high valuation multiples. We remain Bearish on SK Innovation.

• SK D&D announced the results of the delisting tender offer by Hahn & Co. SK &D mentioned that the subscription reached only 40% of the planned tender offer amount.
• Post failed tender offer for SK D&D by Hahn & Co, we expect this to have a positive impact on SK D&D’s share price.
• The major reason for this is that there are still many investors that believe that SK D&D’s shares are significantly undervalued at P/B of only 0.4x.

• JNTC is a technology leader in specialized glass processing, transitioning from a volatile mobile component supplier to a high-growth solutions provider for next-generation industries, including foldable displays, automotive, and AI semiconductor packaging.
• The company’s strategic pivot to Ultra-Thin Glass (UTG) for foldables and Through Glass Via (TGV) substrates for AI chips offers a significant runway for growth, with revenue expected to double in the coming years. This expansion into high-margin sectors is a key catalyst for re-rating.
• Despite the promising outlook, investors must consider the high degree of operational and financial risk, evidenced by historically volatile revenue and profitability, significant customer concentration, and weak gross margins in its legacy businesses.

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• Samsung Electronics (005930 KS) is looking to raise around US$1.2bn from a secondary placement.
• This represents 0.9 days of the stock’s three month ADV, and  0.3% of total shares outstanding.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Hyosung Heavy (298040 KS) near 29% weight; 10ppt ceiling cut = ~0.6–0.7x DTV outflow. Unlike other ETF heavies, flows here bite — real tradeable setup.
• Hyosung Heavy ceiling cut hits Dec 12 rebalance unless >30% earlier; iSelect enforces next‑day, as seen with Isupetasys (right today) breach in KODEX AI Semicon ETF clipped to 20%.
• Hyosung Heavy again ripping today; watch 30% breach — triggers next‑day ceiling cut. Play the reversion, hedge with other hot AI power basket names.

• KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming semiannual review in December 2025.
• We expect up to 5 ADDs and 6 DELs for the KOSPI 200 index during this index rebal event based on the latest available data.

• It was announced today that Samsung’s Lee family members are selling about 1.8 trillion won worth of Samsung Electronics (005930 KS) through an after-hours block trade. 
• The purpose of the block trade is for the Lee family members to pay for inheritance taxes and repay stock-backed loans.
• The block trade selling level is between 102,200 won and 104,100 won, representing a discount of 0% to 1.8% compared to the closing price of the day.

• Synopex Inc. is a diversified manufacturer with core operations in Flexible Printed Circuit Boards (FPCBs) and high-performance membrane filters, positioning it to capitalize on growth in both the electronics and environmental sectors.
• The company is strategically expanding its presence in high-growth areas, including automotive electronics, medical devices (such as artificial kidneys), and advanced water treatment solutions, leveraging its technological expertise in filtration and electronic components.
• Financial performance indicates strong bottom-line growth, with a 3-year Net Income CAGR of 41.07%, despite modest revenue growth. This suggests successful cost management, a shift towards higher-margin products, or operational efficiencies.

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