South Korea

• HD Hyundai merger: both legs in index, Mipo delists, slot opens — one new name gets added to KOSPI200 via ad‑hoc.
• Sanil Electric (062040 KS) to replace HD Mipo pre‑Dec review. If DTV settles back into the 500–600k range, then KS200 ETFs will need to scoop ~0.3–0.4x DTV on Nov 26.
• Better to front‑run KRX; with AI power trade still hot, Nov 20 announcement likely sparks outsized price action vs waiting for rebalance print.

• On 29 October, SK Square announced that it is selling its stake in 11st to SK Planet. This is likely to have a slightly negative impact on SK Square.
• Given SK Planet’s limited financial resources, it is likely that SK Square will provide funding to SK Planet through a capital increase.
• However, the biggest factor driving SK Square’s share price right now is the continued surge in SK Hynix’s share price. 

• SK Hynix reported Q325 revenues of ₩34.45 trillion, up +10% QoQ and up 39% YoY representing an all time quarterly revenue record
• Now given the customers demand and the company’s capacity for next year not only HBM but DRAM and NAND capacity has essentially been sold out.
• DRAM margin could rise closer to HBM but the company does not plan to immediately adjust the capacity mix based on what can be a short-lived change in profitability

• SK Hynix is exceptionally well-positioned to capitalize on the artificial intelligence supercycle, driven by its market-leading position in High Bandwidth Memory (HBM), a critical component for AI accelerators.
• The company is experiencing a period of record financial performance, with surging revenue and profitability fueled by insatiable HBM demand and a broader recovery in the DRAM and NAND markets.
• While facing intensified competition from rivals Samsung and Micron, SK Hynix is aggressively investing in next-generation technologies (HBM4, AI-NAND) and expanding production capacity to solidify its competitive advantages and meet future demand.

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• SK Square is a South Korean investment holding company, spun off from SK Telecom in 2021, with a strategic focus on the semiconductor and information and communication technology (ICT) sectors.
• The company’s intrinsic value and performance are overwhelmingly tied to its cornerstone asset, a significant ~20% stake in SK Hynix, a global leader in the memory semiconductor market.
• Future value creation is expected to be driven by the performance of SK Hynix, the potential narrowing of its substantial Net Asset Value (NAV) discount, and strategic investments in new growth areas, though it faces high volatility from the semiconductor industry.

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• Proprietary Technology Driving Brand Strength: Neopharm’s core competitive advantage lies in its patented Multi-Lamellar Emulsion (MLE) technology, which mimics the natural lipid structure of the skin. This scientifically-backed technology underpins its key brands like Atopalm and Real Barrier, fostering strong brand loyalty, particularly in the sensitive and dry skin segments.
• Favorable Industry Tailwinds: The global dermo-cosmetics market is experiencing robust growth, with forecasts projecting a CAGR of 7.4% to 11.1%. This expansion is driven by rising consumer awareness of skin health, an increasing prevalence of skin conditions, and a growing demand for scientifically-backed, therapeutic cosmetic solutions.
• Solid Financials and Shareholder Returns: The company has demonstrated a strong track record of revenue and net income growth over the past decade. This financial strength is complemented by a commitment to shareholder returns, evidenced by a consistently increasing dividend per share and a dividend yield that has grown significantly over the last three years.

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• Samsung Biologics (207940 KS) reported revenue of KRW1,660B (up 40% YoY and 29% QoQ) and operating profit of KRW729B (up 115% YoY and 53% QoQ) in 3Q25.
• In 3Q25, the company continued to secure new manufacturing and development contracts with global pharmaceutical partners, bringing its cumulative contract volume to over $20B since its founding. 
• Amid steady client demand and efficient capacity utilization, Samsung Biologics is confident on achieving full-year revenue growth guidance of 25–30% YoY, as revised upward in last quarter.

• Chey Tae‑won’s Korea–Japan integration push is fresh tape—unpriced and unconsumed—unlike the exhausted dividend tax story, making it the real policy‑momentum trade to watch.
• Korea’s export model is fading, but a $6T Korea–Japan bloc plus CPTPP buzz offers a fresh policy‑momentum catalyst, with AI/data angles luring incremental global flows.
• Korea–Japan cooperation isn’t a real bloc yet, but it trades like a policy theme—Chey’s 3PRO push makes it a headline‑driven short‑term play ripe for desks.

• SK hynix reported another stunning quarter: revenue up 39% YoY, Operating Profit up 62%
• The soft guidance for 2026 points to increasing bit growth and we know that ASP are increasing. As SK hynix says “explosive AI growth”.  
• Best 2 Memory stocks 1. SK hynix 2. Micron.  Samsung? we still need a bit more clarity on HBM3E / 4  qualifications

• Last week, London-based activist Palliser Capital tapped LG Chem (051910 KS) to remedy its NAV market discount. Palliser also said it now holds a little over 1% in LG Chem.
• LG Chem’s large NAV discount is well known. It has been present since ~82%-held LG Energy Solution (373220 KS) (LGES) was listed in January 2022. 
• An obvious solution is to pare down the LGES stake, and buy back shares. Yet the discount remains as the market views management as being (stubbornly) set in their ways.

• HMC buyback ~₩0.8–1.0tn (~1.5% SO). Street focus is ord/pref split, with prefs at ~25% discount. Mgmt urgency: lift equity value as K‑market rallies.
• Narrowing the pref gap seen as the cleanest lever—shareholder‑friendly signal, draws real money/offshore flows, de‑risks policy optics—so locals expect the first buyback leg skewed to prefs.
• Street sees HMC aiming mid‑teens pref discount via year‑end pref‑heavy buyback and dividend tax reform. Catalysts make narrowing trend look achievable.

• Posco Future M is uniquely positioned in the electric vehicle (EV) battery materials market as South Korea’s only producer of both cathode and anode materials, providing a comprehensive solution to battery manufacturers.
• The company is aggressively expanding its production capacity with a target of producing 1 million tons of cathode materials and 370,000 tons of anodes by 2030, supported by significant long-term supply agreements with major battery makers like Samsung SDI and LG Energy Solution.
• While demonstrating strong top-line growth, the company faces challenges from intense competition, particularly from Chinese rivals in the anode market, and is focused on vertical integration and cost reduction to maintain its competitive edge.

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• Intops is undergoing a significant strategic pivot from its declining legacy business of manufacturing smartphone components, primarily for Samsung, to the high-growth potential robotics sector.
• Financial performance has deteriorated significantly in the last three years, with sharp declines in revenue, profitability, and cash flow, reflecting the challenges in the global smartphone market and high customer concentration.
• The company’s valuation appears attractive on a price-to-book basis, but this is counterbalanced by high uncertainty surrounding the successful execution and future profitability of its new robotics venture.

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• Woori Technology is a key supplier of critical control systems to South Korea’s nuclear power industry, a sector poised for growth due to a favorable shift in government policy. The current administration has reversed a nuclear phase-out plan, now targeting nuclear power to supply at least 30% of the nation’s electricity by 2030 and aiming to export 10 nuclear plants.
• The company has diversified its operations into the defense, railway, and renewable energy sectors, reducing its sole reliance on the nuclear industry. Its defense business supplies components for military vehicles, while its railway division focuses on high-safety control systems.
• Despite strong long-term revenue growth, the company faces significant profitability challenges and negative free cash flow. Recent financial performance shows a sharp decline in net income and margins, coupled with consistently negative free cash flow over the past decade, raising concerns about its financial stability and cash generation capabilities.

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• In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the next two weeks (24 October to 7 November 2025).
• Top 10 picks in this bi-weekly include Samsung Life Insurance, Samsung C&T, KT&G, LG CNS, Samchully, Hyundai Elevator, Korea Zinc, LG Chem (Pref), SK Inc, and LS Corp. 
• Rechargeable battery was the best performing sector in KOSPI in the past two weeks including L&F (+87.1%) Posco Future M (+65.4%) CosmoAM&T (+51.9%) and EcoPro Materials (+46.8%).

• Palliser discloxes stake in LG Chem Ltd (051910 KS), and subsequently seeks to spill the board and undertake buybacks. 
• The family  increased their bid for Pacific Industrial (7250 JP) by 42.4%, from ¥2,050 to ¥2,919/share. This now becomes a short-term rate of return trade. It will trade relatively tight.
• First Pacific Co (142 HK) appears to have squeezed the most out its unlisted subsidiary MPIC, for now, with the forthcoming Maynilad IPO.

• Gov’t likely to ease CVC rules; street chatter sees high odds. Tied to KRW150tn Growth Fund push, with corporates lobbying—cleanest path to juice capital flow.
• Holdcos at center of CVC‑easing; scrapping disclosure rule unlocks external capital. Street read: fast flip from control towers to re‑rating plays as real investment shops with growth portfolios.
• KFTC flags 177 holdcos, 14 with CVCs (13 listed). Street sees momentum flows hitting these 13 names; play via basket/overweight, with Doosan, Hyosung, LX as preferred plays.

• Samsung Electronics (005930 KS) has been in a furious rally for 8 weeks recently, trashing completely our previous forecast (we said the stock had limited upside, short-term forecast).
• Stock is up 95% since its Feb 2025 low, we have been Samsung Electronics bulls at least since January 2025, but surely we did not expect this monster rally.
• The stock inevitably will pullback, and a 1.7 Trillion KRW block deal sale by the owners is in motion. We identify short-term support zones to buy during the incoming pullback.

• Manyo is a fast-growing K-beauty brand specializing in natural and organic skincare, with a strong position in the domestic South Korean market and expanding global reach, particularly in Japan and the US.
• The company has demonstrated a robust growth trajectory, driven by the global demand for clean beauty and the popularity of K-beauty trends. Its successful IPO in 2023 and recent acquisition by a private equity firm are expected to fuel further product innovation and international expansion.
• Key risks include intense competition within the global cosmetics industry, reliance on the continued popularity of K-beauty trends, and the need to maintain brand differentiation and pricing power in a crowded market.

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• LS Materials is a key global player in the ultracapacitor market, a sector poised for significant growth driven by the expansion of electric vehicles (EVs), renewable energy, and industrial automation. The company is strategically positioned to capitalize on these long-term secular trends.
• The company’s financial performance has been volatile, with recent quarters showing margin pressure and negative free cash flow. While revenue grew in 2024, net income saw a significant decline, highlighting potential profitability challenges and the capital-intensive nature of its growth strategy.
• Future growth is tied to the successful expansion into the EV components market, including a joint venture for high-strength aluminum parts, and the adoption of its ultracapacitor technology as a complementary solution to lithium-ion batteries, particularly in high-power and extreme temperature applications.

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• Coocon Corp is a key player in South Korea’s rapidly expanding fintech sector, providing essential data and payment API infrastructure to a wide range of clients including financial institutions and tech companies.
• The company is demonstrating robust financial performance, characterized by significant revenue and net income growth, driven by the acceleration of financial service digitalization and supportive government policies like Open Banking and MyData.
• While the outlook is positive due to secular growth trends, Coocon faces notable risks from an increasingly competitive landscape and potential changes in financial regulations that could impact future growth and profitability.

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• Palliser Capital started to go activist on LG Chem.  According to Palliser Capital, LG Chem’s share price is trading at a 74% discount to its NAV.
• Palliser Capital proposed improving the composition of the board of directors, restructuring the executive compensation system to align with shareholder interests, and higher share buybacks. 
• Our updated NAV analysis of LG Chem suggests implied price of 613,438 won per share, which represents a 57% higher levels than current levels.

• Market sniffing policy push; low-float names flagged as junk risk with skewed control. Desks circling, Palliser hit early—LG Chem trade popped, timing spot on.
• Trade setup: screen >₩1tn caps with low float, parent stakes 60–80%. Policy push likely forces stake cuts, driving float higher and squeezing NAV discounts—LG Chem shows the play.
• Screening >₩1tn caps flags 11 names: parents hold 60–80%. All potential stake-sale plays to boost float, squeeze NAV discount.

• LivsMed is getting ready to complete its IPO on the KOSDAQ exchange in December 2025. LivsMed is a medical device manufacturer that specialises in minimally invasive surgery products.
• This is expected to be one of the largest IPOs in KOSDAQ in 2025.  The IPO price range is from 44,000 won to 55,000 won per share.
• LivesMed has commercialized the world’s first multi-joint, multi-degree-of-freedom (DOF) technology capable of 90° rotation in all directions.

• Nota’s IPO price has been confirmed at 9,100 won, which is at the high end of the IPO price range. The demand ratio was 1,058 to 1.
• Our base case valuation of Nota suggests target price of 11,948 won per share, which is 31% higher than the IPO price (9,100 won). 
• Nota Provides technology that enables the efficient operation of high-performance AI models even on resource-constrained edge devices, centered around its proprietary AI model optimization platform, NetsPresso®.

• Aniplus is increasingly becoming a leading player in the anime contents production and distribution in Korea. The company’s anime contents have potential to expand globally. 
• Valuations are attractive. It is trading at P/E of 9x in 2025 and 7.9x in 2026 based on consensus earnings estimates. 
• If we use P/E of 15x on 2026E net profit of 26.9 billion won, this would suggest a market cap of 404 billion won (95% higher than current market cap). 

• Doosan Enerbility is strategically pivoting towards eco-friendly energy solutions, including gas turbines, renewables (wind, hydrogen), and small modular reactors (SMRs), positioning itself to capitalize on the global energy transition.
• The company maintains a strong, albeit cyclical, position in the global power and water plant construction market, with core competencies in nuclear reactors, turbines, and desalination technologies.
• Financial performance is characterized by revenue growth but significant volatility in profitability and cash flow, alongside a high valuation (P/E > 100x) that presents a risk for investors.

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• Technology Leader in a Growing Niche Market: Park Systems is the global market leader in the Atomic Force Microscopy (AFM) industry, a critical segment for nanoscale metrology. The company’s growth is propelled by secular tailwinds, including semiconductor miniaturization and increasing R&D in life sciences and materials science.
• Founder-Led with Deep Expertise: The company is led by its founder, Dr. Sang-il Park, a pioneer who was part of the Stanford team that invented the AFM and who commercialized the world’s first AFM. This deep technical expertise forms the foundation of the company’s innovative product development and competitive edge.
• Strong Financial Performance with a Robust Outlook: Park Systems has demonstrated an impressive track record of high-growth, with a 5-year revenue CAGR of 27.5% and a 5-year net income CAGR of 38.2%. The outlook remains positive, supported by strategic acquisitions and expansion into new applications, though valuation appears full, reflecting high expectations.

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• Names with the biggest float bumps relative to their old float saw the sharpest moves — Hanwha Ocean and Ecopro Materials were the standout examples.
• Kakao Pay looks set for Dec review spotlight: float likely jumping from 21% to 34% (+13ppt, 60%+ surge), even bigger than Hanwha Ocean/Ecopro last round.
• Kakao Pay’s 13ppt float hike implies ~0.7–1.0x DTV passive inflows; with little pre‑positioning, flows may hit raw and drive outsized intraday impact.

• SK Group plans to restructure its renewable energy businesses that could result in asset sales of more than 1 trillion won. 
• SK Group is taking on a major restructuring of its renewable energy businesses, including  including fuel cells, energy storage systems (ESS), and solar/wind power generation facilities. 
• A consensus has been forming in the local media regarding Chairman Chey’s expected divorce payment to his wife Roh So-young to be about 400 billion won to 700 billion won.

• SemiFive is getting ready to complete its IPO in KOSDAQ in December 2025. The IPO price range is from 21,000 won to 24,000 won per share.
• Total IPO proceeds are estimated to be between 113.4 billion won to 129.6 billion won. The market cap is expected to range from 708 billion won to 809 billion won.
• SemiFive is one of the global leaders in custom AI semiconductor (ASIC) design.