South Korea

• On 10 August, it was reported that Miri Capital, a U.S. based investment firm has invested in 15 Korean companies, of which 13 of them are listed in KOSDAQ.
• Some of the KOSDAQ listed companies invested by Miri include Gabia (24.2%), KINX (17%), Genians (15.1%), Korea Alcohol (12.9%), Mico (11.1%), Gaesoft (10.2%), and Makus (9.9%). 
• Increased foreign investors such as Miri Capital that are interested in investing in high quality, overlooked small and mid cap stocks in KOSDAQ could positively impact the KOSDAQ exchange.

• On 10 August, it was reported that Koo Hyung-mo, President of LX MDI, has become the largest shareholder of LX Holdings (383800 KS). 
• President Koo Hyung-mo’s stake in LX Holdings increased from 12.15% previously to 20.15%. Chairman Koo Bon-joon’s stake decreased from 20.37% to 12.38% following the gift.
• My NAV valuation suggests an implied market cap of 848 billion won or target price of 11,107 won per share, which represents a 39% upside from current levels.

• Kakao Mobility is the undisputed leader in South Korea’s mobility market, commanding a market share of over 90% in the ride-hailing segment through its comprehensive ‘Kakao T’ super-app.
• The company is diversifying its revenue streams beyond ride-hailing into higher-margin areas such as parking, premium taxi services, and B2B solutions, while also investing in future growth drivers like autonomous driving and AI-powered logistics.
• Significant regulatory scrutiny, including allegations of anti-competitive practices and accounting fraud, coupled with pressure from major financial investors for a liquidity event, presents considerable uncertainty, with a potential Nasdaq listing being explored as a strategic option.

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• Bionote is a South Korean company specializing in in-vitro diagnostic products for animals, with a growing presence in the global market.
• The company’s financial performance has been significantly impacted by the post-pandemic decline in demand for COVID-19 related products, leading to a strategic shift towards its core animal diagnostics business.
• Future growth is expected to be driven by the expanding animal health market, new product launches, and geographic expansion, particularly in the U.S. and other developed markets.

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• Dongsuh Companies holds a dominant position in the South Korean instant coffee market through its joint venture, Dongsuh Foods, which commands a market share of over 80% with its flagship ‘Maxim’ brand.
• The company demonstrates strong financial resilience, characterized by consistent profitability and robust operating cash flow, supporting a generous and growing dividend policy.
• While the core instant coffee market is mature and facing challenges from a growing cafe culture and capsule coffee, Dongsuh is strategically pivoting towards premium instant coffee, ready-to-drink (RTD) beverages, and the capsule market to capture evolving consumer preferences.

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• Strategic Repositioning for Global Growth: Dongwon F&B is undergoing a significant corporate restructuring to be delisted and fully integrated into its parent, Dongwon Industries. This move is designed to streamline operations, create synergies, and aggressively pursue global expansion, with a target of increasing overseas sales from 22% to 40% of total revenue by 2030.
• Diversification Mitigating Commodity Risk: While historically known for its dominant canned tuna business, the company has successfully diversified its portfolio into higher-growth areas like Home Meal Replacements (HMR), dairy, beverages, and pet food. This strategy, coupled with recent large-scale facility investments, is reducing earnings volatility associated with fluctuating tuna prices.
• Solid Financial Performance and Attractive Valuation: The company has demonstrated consistent revenue and net income growth over the past several years. Despite this strong performance, it trades at a compelling valuation relative to its peers. However, investors should monitor the recent trend of negative free cash flow, which is largely attributable to significant capital expenditures for future growth.

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• Strategic Repositioning Amid Industry Headwinds: Dongkuk Steel is navigating a challenging steel market by focusing on high-value-added products, expanding its export footprint, and enhancing shareholder returns. The company recently underwent a significant restructuring, separating its hot-rolled and cold-rolled businesses to improve management efficiency and business competitiveness.
• Attractive Valuation with Underlying Risks: The company exhibits strong value, growth, and momentum characteristics, reflected in a low price-to-book ratio. However, this is counterbalanced by low resilience, stemming from margin pressure and the inherent cyclicality of the steel industry. Financial performance has been volatile, with a notable decline in profitability from a 2023 peak.
• Focus on Shareholder Returns and Future Growth: Management has committed to a high dividend payout, signaling confidence in future cash flows. The company’s strategy involves increasing its export share from 11% to 15% to mitigate sluggish domestic demand and investing in future growth engines through a newly established corporate venture capital (CVC) arm.

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• Hanil Holdings is a major player in the South Korean cement industry, demonstrating strong shareholder returns through consistent and growing dividends, supported by high dividend and momentum Smartkarma scores.
• The company faces headwinds from a sluggish domestic construction market, which has negatively impacted revenue and net income growth in recent years. Future growth is linked to a recovery in the housing market and government infrastructure spending.
• Valuation appears attractive, with a low price-to-book ratio. However, the company’s growth outlook is closely tied to the cyclical nature of the domestic construction industry, presenting a key risk for investors.

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• Hanwha Corporation is a large South Korean conglomerate with a diversified business portfolio spanning aerospace, defense, chemicals, energy, financial services, and construction.
• The company is undergoing a strategic restructuring, including a planned spin-off of its Machinery & Service Holdings, to sharpen its focus on high-growth areas like technology and life solutions.
• While the company exhibits strong growth in its defense and aerospace segments, driven by increasing global demand, its overall financial performance is marked by revenue growth but volatile net income and fluctuating margins.

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• Strong Recovery and Growth Momentum: The company has demonstrated a significant financial turnaround, moving from a net loss in 2024 to strong profitability in 2025 and the first quarter of 2026, driven by a massive surge in revenue.
• Favorable Industry Tailwinds: South Korea’s tourism sector is experiencing a robust recovery, with international visitor arrivals in the first half of 2026 surpassing pre-pandemic levels, providing a strong demand backdrop for the company’s core hotel and hospitality assets.
• Attractive Valuation Relative to Peers: GS P&L trades at a notable discount to its peers on key valuation metrics such as Price-to-Book (P/B) and EV/Sales, suggesting a potential valuation gap and opportunity for re-rating.

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• Street sees end-August print with Solidigm tie in; total around 70 trillion won, mix buyback plus special dividend, staged from 4Q with multi year buyback and FCF linked quarterly payouts.
• Near term narrative weak; immediate shareholder return signal unlikely. Faster Solidigm timeline could signal urgency on peak out risk and reinforce concerns rather than remove them.
• Tactical setup; if stock catches a bid, play the pop, monetize relief, and rotate out rather than chase strength.

• We present a WEEKLY tactical global macro recap/analysis for several markets and stocks we track, grouped by sector.
• We apply our quantitative models to each instrument’s trend, to determine which stocks/markets are just starting a trend, are in the middle of it, or are about to end it.
• Amazon,  GLD and ASX 200 are quite overbought. Samsung Electronics , Bank of China (3988 HK) and United States Oil Fund LP (USO US) are oversold.

• Hanwha Securities is aggressively pursuing a digital and global expansion strategy, focusing on fintech innovation and establishing a presence in key Southeast Asian markets to diversify its revenue streams beyond the cyclical domestic brokerage business.
• The company exhibits a strong three-year growth track record in net income and EPS, but this is coupled with significant earnings volatility and a lack of dividend payments, reflecting a high-growth, high-risk profile.
• Valuation appears attractive on a price-to-book basis (0.5x) compared to peers, but the business faces intense competition and is highly sensitive to market fluctuations, regulatory changes, and interest rate movements in the South Korean financial industry.

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• As South Korea’s sole military aircraft manufacturer, KAI is uniquely positioned to benefit from rising domestic defense spending and a national strategic focus on military modernization and self-reliance.
• Strong export momentum for its FA-50 light combat aircraft and the development of the next-generation KF-21 fighter are key long-term growth drivers, supported by a substantial order backlog that provides significant revenue visibility.
• Despite robust top-line growth prospects, the company faces challenges including high dependence on government contracts, execution risk on large-scale development projects, and historically negative cash flow generation which requires careful monitoring.

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• Clio Cosmetics is a prominent South Korean cosmetics company with a multi-brand strategy, featuring Clio Professional for makeup, Peripera for a younger demographic, and Goodal for skincare. This diversification allows it to target various market segments effectively.
• The company is actively pursuing international expansion, particularly in North America and Europe, to reduce its reliance on the domestic and Asian markets. Recent strategic initiatives include launching region-specific products and entering major European drugstore chains.
• Financial performance has been volatile, with recent pressure on revenue and profitability due to intensified competition and challenges in the North American market. However, the company is increasing marketing spend and focusing on its skincare lines to drive a rebound.

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• ELand Retail is demonstrating early signs of a turnaround, having returned to profitability in Q1 2026 after a period of declining sales and net losses. This recovery is attributed to business structure improvements, operational efficiencies, and a focus on core store competitiveness.
• The company faces significant headwinds from a challenging domestic market, characterized by sluggish private consumption and intense competition from e-commerce giants. A high debt burden and a recent credit rating outlook downgrade to ‘negative’ underscore the financial risks.
• Management’s strategy is centered on enhancing profitability over aggressive expansion. Key initiatives include merging subsidiaries to create synergies, remodeling its urban outlet stores (NC, Newcore, 2001 Outlet), and pursuing targeted international growth, particularly in China and Vietnam.

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• Alteogen is a key enabler in the rapidly growing subcutaneous (SC) drug delivery market, with its proprietary ALT-B4 hyaluronidase technology platform. This technology allows for the conversion of intravenous (IV) drugs to a more convenient SC formulation.
• The company’s business model has been significantly de-risked through a landmark licensing agreement with Merck for the SC formulation of its blockbuster drug, Keytruda (pembrolizumab). This partnership provides a strong validation of the ALT-B4 platform and is expected to generate substantial milestone payments and royalties.
• Following the success with Merck, Alteogen has secured multiple licensing deals with other major pharmaceutical companies, including GSK, Daiichi Sankyo, and AstraZeneca, creating a diversified and high-growth revenue stream. The company has transitioned from a pre-revenue R&D firm to a profitable enterprise.

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• Genexine is a clinical-stage biotechnology company focused on immunotherapeutics and long-acting biologics, leveraging its proprietary hyFc® and DNA vaccine platform technologies.
• The company’s financial performance is characterized by significant and persistent net losses and cash burn, reflecting its development-stage status. Future value is contingent on the clinical and commercial success of its key pipeline assets.
• Key late-stage assets include GX-H9 (long-acting growth hormone), which met its Phase 3 primary endpoint in China, and GX-E4 (long-acting erythropoietin), which received its first market approval in Indonesia. These represent potential near-term value drivers.

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• Carelabs is a healthcare IT company in South Korea operating in a high-growth digital healthcare market, but facing significant financial volatility and cash flow challenges.
• The company’s stock appears significantly undervalued compared to peers across multiple valuation metrics, reflecting market concerns over its inconsistent profitability and negative free cash flow.
• Recent strategic hires from major tech companies like Amazon and Coupang signal a renewed focus on growth, technology, and expansion into new areas like senior care and AI-based services.

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• E Starco operates a diversified but struggling business model, with activities in residential construction, firefighting equipment manufacturing, and education. Despite strong 3-year revenue growth, the company has failed to achieve profitability, posting significant net losses consistently.
• The financial performance is characterized by high volatility, negative net margins, and a declining market capitalization. While revenue has seen periods of rapid growth, this has not translated into shareholder value or stable cash flow generation.
• The outlook is challenging, with high uncertainty. The company’s low resilience, as indicated by its Smartscore, combined with intense competition in its key markets and persistent unprofitability, presents significant risks to its fundamental outlook and earnings.

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• Doosan Fuel Cell is undergoing a critical strategic pivot from its mature Phosphoric Acid Fuel Cell (PAFC) technology to high-efficiency Solid Oxide Fuel Cells (SOFC), targeting high-growth markets like data centers and maritime applications.
• The company’s financial performance has been weak, with significant operating losses driven by investment in new technology, underutilization costs, and legacy product issues. However, revenues are expected to rebound, driven by deferred volumes and new orders from South Korea’s Clean Hydrogen Portfolio Standard (CHPS) auctions.
• Long-term success hinges on the successful commercialization and market adoption of its new SOFC products, proving their competitiveness against established players, and securing anticipated export orders, particularly in the U.S. market.

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• ALT Co., Ltd. is an established South Korean provider of semiconductor testing services, specializing in critical components for the display, imaging, and power management sectors. The company is navigating a challenging period of unprofitability despite revenue growth, reflecting significant industry headwinds and company-specific pressures.
• The company’s financial health is a key concern, characterized by consistent net losses, a high debt-to-equity ratio, and a negative net cash position. These factors, coupled with a low Altman Z-Score, indicate a heightened risk of financial distress, which could impact its ability to invest in next-generation testing capabilities.
• Positioned within the growing semiconductor testing market, ALT stands to benefit from long-term secular trends such as increasing chip complexity and the proliferation of semiconductors in automotive, AI, and 5G applications. However, the company faces intense competition from both domestic and international players, necessitating a clear strategy to achieve profitability and sustainable growth.

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• Company in Rehabilitation: ContentreeJoongAng, along with its cinema subsidiary Megabox and parent JoongAng Group, filed for court-led rehabilitation in mid-2026 due to a severe liquidity crisis. This action introduces extreme uncertainty and risk for equity holders, with stock trading previously suspended.
• Strategic Setback in Cinema Division: A crucial merger between its Megabox cinema chain (#3 in Korea) and competitor Lotte Cinema (#2) collapsed in July 2026. This eliminates a key strategic pathway to address persistent losses in the structurally challenged movie exhibition business.
• Core Asset Value in Content: Despite the corporate distress, the company’s content production arm, SLL (Studio LotteLe), remains a valuable asset. It benefits from the sustained global demand for high-quality South Korean content, which could be central to any successful restructuring or asset sale.

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• Aprogen Pharmaceuticals is in a precarious financial position, characterized by persistent and significant net losses, negative operating cash flows, and a dramatic decline in market capitalization over the past several years. The company’s revenue has been largely stagnant while its cost structure has led to deeply negative gross and net margins.
• The company’s strategic focus is on the development of biosimilars and novel biologics, leveraging its proprietary antibody engineering technologies. Its pipeline includes biosimilars for major drugs like Herceptin, Humira, and Rituxan. A key development is the potential waiver of Phase 3 trials for its Herceptin biosimilar by the FDA and EMA, which could significantly reduce costs and time to market.
• Despite a very low price-to-book ratio suggesting a potential value opportunity, the investment case is overshadowed by extremely high uncertainty. The company’s ability to achieve profitability and reverse its negative cash flow trend is contingent on the successful commercialization of its pipeline products and a significant operational turnaround, which remains unproven.

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• APS Holdings is a key equipment supplier in the OLED display and semiconductor industries, with a strategic focus on high-growth areas like Fine Metal Mask (FMM) technology.
• The company exhibits extremely high financial volatility, with significant revenue growth overshadowed by fluctuating net income and margins, reflecting the cyclical and project-based nature of its business.
• Trading at a significant valuation discount to peers, the stock presents a potential value opportunity, contingent on the successful commercialization of its FMM technology and stabilization of earnings.

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• Asiana IDT Inc. is a well-established IT service provider in South Korea with a strong reliance on its parent company, Asiana Airlines, and the broader Kumho Asiana Group for a significant portion of its revenue. This relationship provides a stable revenue stream but also exposes the company to the cyclical nature of the airline industry.
• The South Korean IT services market is poised for steady growth, driven by digital transformation, cloud computing, AI, and big data analytics. Asiana IDT is positioned to benefit from these trends, particularly within its core verticals of aviation, transportation, and logistics.
• The impending merger of Asiana Airlines with Korean Air presents both significant opportunities and risks for Asiana IDT. Integration into a larger airline group could unlock new revenue streams and larger-scale projects, but it also creates uncertainty regarding its role and autonomy within the new entity.

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• Aproele is a key global supplier of specialized manufacturing equipment for the critical ‘activation’ phase of rechargeable Li-ion battery production, a market benefiting from strong secular tailwinds driven by the global transition to electric vehicles (EVs) and energy storage systems.
• The company’s competitive advantage is rooted in its deep technological expertise in power conversion and control systems, a high degree of customization to meet the exacting standards of major clients, and long-standing, embedded relationships with top-tier battery manufacturers, particularly South Korean conglomerates like LG Energy Solution.
• While poised for significant growth by expanding its technological scope into adjacent high-growth areas like Gallium Nitride (GaN) power semiconductors and used-battery diagnostics, Aproele‘s heavy reliance on a concentrated customer base within the highly competitive and capital-intensive battery manufacturing sector presents a key risk.

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• Daeduck Electronics is strategically positioned to capitalize on the explosive growth in the AI, data center, and automotive sectors, driven by its advanced semiconductor package substrate technology, particularly in high-value Flip-Chip Ball Grid Array (FC-BGA).
• The company is experiencing a significant earnings turnaround, with record-breaking quarterly results in 2026 fueled by a favorable product mix shift towards high-margin AI-related products, improved productivity, and rising average selling prices (ASPs).
• Aggressive capacity expansions are underway to meet surging demand, including resumed investments in FC-BGA and new facilities for memory package substrates, signaling strong management confidence in sustained future growth despite the inherent cyclicality of the semiconductor industry.

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• Daewon is navigating a challenging profitability landscape, with net income turning negative in 2025 due to increased R&D spending, marketing expenses, and price cuts on key products. This contrasts with a history of consistent, albeit slowing, revenue growth.
• The company is strategically pivoting towards future growth drivers, including a promising R&D pipeline focused on high-demand metabolic diseases like obesity and an aggressive expansion into the health functional foods segment, which has shown explosive growth.
• Valuation appears attractive on an asset basis (P/B ratio of 0.6), but high on a forward earnings basis. The investment case hinges on the successful execution of its pipeline and a return to sustainable profitability, which currently faces high uncertainty.

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• Aerospace Technology of Korea (ATK) is experiencing a significant operational turnaround, marked by robust revenue growth that aligns with the strong recovery in the global aerospace sector. The company has successfully transitioned from substantial net losses in 2023 and 2024 to achieving profitability in the most recent quarters, indicating a substantial improvement in operational efficiency and margin control.
• The company is a key supplier of aerostructures, including fuselages and doors, for major aircraft programs. Its established relationships with global original equipment manufacturers (OEMs) provide a solid foundation for future growth, although this also presents a customer concentration risk. The ongoing ramp-up in aircraft production, particularly for narrow-body jets, serves as a primary tailwind.
• Despite the positive operational momentum, ATK’s financial history is characterized by significant volatility in earnings and cash flow. The company’s stock has underperformed its operational growth, and it does not have a history of paying dividends. High uncertainty remains regarding the sustainability of its recent profitability, making it a high-risk, high-reward investment proposition.

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• Golfzon Holdings announced that SJ Investment Holdings acquired 9,742,319 shares following a tender offer. SJ Investment Holdings secured 62.9% of the target volume (15,485,020 shares) in the tender offer.
• This Golfzon Holdings tender offer shows that once again, the corporate governance of many Korean companies are so horrendous.
• In this insight, I provide four main scenarios that could happen next.

• Gold stands apart from the broader August seasonal pattern, while its current implied volatility remains elevated relative to history.
• Implied volatility softened across most markets, although several still remain elevated relative to their typical seasonal levels.
• The historical distribution of August vol premium suggests that short volatility exposure may warrant greater caution across markets.

• Dominant Market Leader: Samsung Life is the largest life insurer in South Korea, commanding a significant market share of approximately 22%. Its affiliation with the Samsung Group provides unparalleled brand recognition and stability, which are critical competitive advantages in the trust-based insurance industry.
• Strategic Shift to Quality Growth: In response to new IFRS 17 and K-ICS regulations, the company is strategically pivoting from volume-based growth to prioritizing high-margin, protection-type products. This shift, coupled with an aging population’s demand for retirement and health solutions, is expected to enhance long-term profitability and capital efficiency.
• Deep Value Proposition with Risks: The stock trades at a significant discount to its book value, with a P/B ratio below 0.6x. This valuation is partly due to its large, concentrated holding in Samsung Electronics, which creates both a value anchor and a source of volatility and corporate governance concerns.

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• Seojin System is strategically diversifying from its traditional telecom and semiconductor equipment businesses into high-growth sectors, notably Energy Storage Systems (ESS) and electric vehicle (EV) components. This pivot is a direct response to the current downturn in the 5G telecom market and aims to capture significant opportunities in the global energy transition.
• The company’s core competitive advantage lies in its vertically integrated manufacturing capabilities, primarily based in its large-scale facilities in Vietnam. This ‘one-stop’ system, from raw material processing to final assembly, provides significant cost and quality control benefits, positioning it as a key manufacturing partner for global leaders in the ESS and battery industries.
• Despite strong long-term revenue growth, recent financial performance has been weak, characterized by declining revenue, negative net income, and significant cash burn from aggressive capital expenditures. The success of its diversification strategy is critical to returning the company to profitability and stabilizing its financial position.

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• Aju IB Investment stands as a pioneering force in the South Korean venture capital landscape, with a rich history and an extensive portfolio of investments in high-growth sectors. Its established track record and strong brand recognition provide a solid foundation for future growth.
• The company’s strategic expansion into the U.S. market through its subsidiary, Solasta Ventures, offers significant upside potential, particularly in the lucrative biotechnology and technology sectors. This provides diversification and access to a different deal flow.
• However, the firm’s financial performance has been characterized by volatility, with revenues and profits heavily influenced by the cyclical nature of the IPO market and the timing of successful investment exits. This inherent unpredictability presents a key risk for investors seeking stable returns.

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• Almac is a key supplier of aluminum battery components for electric vehicles (EVs), positioning it to capitalize on the significant long-term growth expected in the EV market. The company is a major supplier to leading South Korean battery manufacturers.
• Despite strong top-line growth potential, the company faces considerable profitability challenges, having reported net losses in recent fiscal years. Financial performance is characterized by volatile margins and negative free cash flow, reflecting ongoing investment and operational pressures.
• High customer concentration and reliance on the cyclical automotive industry are key risks. The company’s fortunes are closely tied to the capital expenditure and production plans of a few large customers, making it vulnerable to shifts in their strategy or demand.

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• Actro Co Ltd is a key manufacturer of high-precision optical components, primarily actuators and optical image stabilizers (OIS), for smartphone cameras. The company is well-positioned to benefit from the growing complexity and importance of camera systems in the smartphone industry.
• The company has demonstrated a strong growth trajectory, with a 3-year revenue CAGR of 22.58% and a net income CAGR of 40.79%. This growth is fueled by the increasing adoption of advanced camera features like folded zoom in high-end smartphones.
• Despite its strong growth, Actro faces risks related to customer concentration, high competitive intensity within the smartphone component industry, and significant volatility in quarterly earnings and free cash flow.

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• Asia Holdings is a South Korean conglomerate with core operations in cement and paper manufacturing, alongside other interests including real estate and venture capital.
• The company is facing significant headwinds, evidenced by a consistent decline in revenue, net income, and free cash flow over the past three fiscal years, driven by a sluggish domestic construction market.
• Despite poor operating performance, the company trades at a substantial valuation discount to peers and has maintained strong dividend growth, presenting a conflicting value and performance profile.

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• Aekyung Chemical is facing significant headwinds, evidenced by declining revenue, negative net income in recent periods, and deteriorating cash flows. The company’s performance is closely tied to the cyclical nature of its end-markets, such as construction and automotive, and volatile raw material costs.
• The company is strategically shifting towards higher-growth, high-value-added products to diversify its revenue streams and improve profitability. Key focus areas include materials for aramid fibers (TPC) and hard carbon for secondary battery anode materials, with mass production expected to commence and ramp up.
• Despite a low valuation on a price-to-book basis, the company’s lack of scale compared to global peers, limited vertical integration, and high competitive intensity in its core commodity chemical segments present substantial risks to long-term value creation.

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• Ananti is a premier operator of luxury resorts and golf clubs in South Korea, distinguished by its strong brand identity and unique, architecturally significant properties. The company’s primary revenue drivers are resort operations and the pre-sale of memberships and real estate, the latter of which creates significant revenue volatility.
• The company experienced a record year in 2023, with revenue and profits surging due to the successful pre-sales of the ‘Villages de Ananti’ project. However, performance in 2024 and 2025 reverted to net losses, reflecting the cyclical nature of development sales and increased costs associated with new property openings and renovations.
• Positioned within a robustly growing South Korean luxury hospitality market, Ananti’s strategy is to strengthen its independent brand, expand its property portfolio (including new developments in Jeju), and reduce reliance on global hotel partners, aiming to capture both domestic and international demand.

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• Hynix might have rushed ADR to price off Q1 within 135 day window, with weak Q1 LTA pricing already baked in and expected to pressure forward earnings.
• Hynix’s aggressive ADR timeline compromised fungibility, leading some investors to view the move as a signal of management’s cautious outlook on forward memory pricing.
• Hynix is more likely to go with incremental filings in batches. That gives them flexibility to manage supply and support the underlying tactically instead of committing to a risky buyback.

• My updated NAV analysis of SK Square suggests a target price of 1,378,127 won (42% upside). SK Square’s stake in SK Hynix is 172% of its market cap.
• Assuming SK Hynix provides 65.2 trillion won in 2026 shareholder returns split equally between dividends and buybacks, each portion would total 32.6 trillion won.
• SK Square’s shareholder return policy is a bit vague. The company needs to better communicate its shareholder return policy. 

• On the 29th June, Golfzon Holdings (121440 KS)‘s largest shareholder Kim Won-il launched a tender offer for the remaining 36.15% of Golfzon he doesn’t own, at ₩6,700/share, a 57.55% premium.
• At 0.35x P/B, where “B” primarily comprises an entity holding golf courses, currently mid-sale, there is evident (& unsurprising) pushback, including from activist Terton, holding an estimated 3%. 
• The Offer closed yesterday (5th August) with management unflinchingly supporting terms, backed up by a derisory evaluation opinion. 95% squeeze-out appears tenuous. So now what?

• Cash Mountain: Samsung and SK Hynix’s combined net cash US$263bn by year-end — exceeding the rest of the Magnificent Seven combined. The suppliers of AI are richer than its builders.
• The Anomaly: Net cash ~14% of market cap for both names — 5x Nvidia’s ratio — as stocks price in a demand collapse that long-term supply agreements directly contradict.
• The Catalyst: SK Hynix has formally committed to expanded returns; Samsung says “very soon.” At 70–80% FCF payout, the combined programme implies a double-digit effective yield on current market cap.

• Axbis is demonstrating a remarkable financial turnaround, with strong revenue growth and a significant shift from a net loss in 2023 to robust profitability in 2025. This is driven by its specialized laser technology solutions for high-growth industries.
• Despite improving profitability, the company has exhibited consistently negative operating and free cash flows over the past three years, raising concerns about working capital management and capital expenditure intensity.
• Positioned in the growing industrial laser market in South Korea, Axbis serves key sectors like automotive, semiconductors, and electronics. Its valuation appears moderate compared to its peer, presenting a potential opportunity contingent on resolving its cash flow challenges.

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• The FSS intervention on August 5, 2026, halting the 136.7 billion won rights offering, has triggered an acute liquidity bottleneck. SK D&D faces 169 billion won in short-term debt maturities in H2 2026 (107 billion won in September and 62 billion won in October) against immediately usable cash of only 127.9 billion won, creating an immediate refinancing gap in a completely frozen BBB- corporate bond market.
• Hahn & Co’s rights offering structure is a backdoor attempt to force a delisting at the expense of minority shareholders. By pricing the 44.68 million new shares at 3,060 won—a 46% discount to market price and 76% below their previous tender offer of 12,750 won—Hahn & Co (who owns 79.36% of the equity) can absorb unsubscribed shares and potentially cross the 95% voluntary delisting threshold for a fraction of the cost.
• Project-level contingent liabilities at Gunpo Triarts and Icheon Baeksa represent a systemic drag that capital increases cannot easily fix. SK D&D holds 105.3 billion won in joint-guarantee exposure on buyer interim loans at Gunpo Triarts. Combined with sales reversals from cancelled contracts at Saenggak Gongjang Guro that triggered a 9.3 billion won operating loss in Q1 2026, this highlights severe structural issues in their core development portfolio.

• Dong-A ST is navigating a challenging transition, with strong top-line revenue growth driven by its ethical pharmaceuticals (ETC) and overseas businesses, but this is overshadowed by significant net income volatility and negative profitability in recent years. This reflects substantial R&D investments and rising costs.
• The company is strategically pivoting towards high-growth areas, particularly oncology and immunology, through its R&D pipeline and acquisitions like the antibody-drug conjugate (ADC) specialist Abtis. Success in this area is critical for future growth but also carries high clinical trial and market acceptance risks.
• From a valuation perspective, the company appears inexpensive with a low price-to-book ratio. However, this is balanced by weak underlying growth and resilience metrics, indicating that the market is pricing in the significant risks associated with its profitability struggles and the uncertainty of its R&D pipeline.

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• Daeyu Co. Limited is an established fertilizer manufacturer in South Korea with a long operational history since 1977, specializing in a diverse range of fertilizers and pesticides. The company is making strategic investments in production capacity and product innovation, particularly in high-growth areas like organic and high-efficiency fertilizers.
• The company is facing significant corporate governance challenges, including the risk of being delisted from the KOSDAQ exchange, a recent history of management and minority shareholder conflicts, and the arrest of a former CEO. These issues cast considerable uncertainty over the company’s future and stock performance.
• While the South Korean fertilizer market presents a stable to low-growth outlook, Daeyu’s focus on specialized and eco-friendly products could tap into higher-growth segments. However, the severe governance risks and the stock’s trading halt are critical factors that currently overshadow its operational potential.

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• GC Biopharma is poised for a significant earnings rebound in the second half of 2026, driven by the recognition of deferred revenues and strong performance of its key immunoglobulin product, Alyglo, in the U.S. market.
• The company’s strategic focus is on expanding its global footprint, particularly in the U.S. plasma-derived therapies market, supported by vertical integration through the acquisition of plasma collection centers and a robust R&D pipeline.
• Despite near-term challenges including production delays and revenue volatility in certain segments, the company’s financial position has been strengthened by the sale of its stake in Curevo, enabling strategic investments and debt reduction.

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• Cowintech is a key player in the high-growth secondary battery automation sector, providing full turn-key solutions that position it to capitalize on the global expansion of electric vehicle and energy storage system manufacturing.
• The company faces significant volatility in its financial performance, with impressive long-term revenue growth contrasted by recent negative trends in market cap, net income, and earnings per share, indicating potential execution and profitability challenges.
• Strong tailwinds from the broader smart factory and industrial automation markets in South Korea and globally provide a favorable backdrop for growth, driven by the adoption of IoT, AI, and robotics.

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• Some of the minority shareholders are fiercely protesting SK D&D’s decision to launch a massive capital increase amounting to 240% of its outstanding shares. 
• The projected rights offering price of 3,060 won is 33% discount to current price of 4,575 won. 
• I am Negative on this rights offering and on SK D&D. Issuing shares at significant discount to current price that are 240% of outstanding shares is negative to minority shareholders.

• Samsung Electronics is a global leader in semiconductors and consumer electronics, with its Device Solutions (semiconductor) division being the primary driver of revenue and profitability, particularly benefiting from the growth in AI-driven demand for high-bandwidth memory (HBM).
• The company is navigating a cyclical memory market and intense competition across all segments, including smartphones and foundry services. Strategic priorities include advancing semiconductor technology, expanding its AI ecosystem, and enhancing manufacturing efficiency through AI-driven factories by 2030.
• The preferred shares (005935 KS) trade at a significant and historically wide discount to the common shares (005930 KS), offering a potentially attractive entry point for long-term investors, despite lacking voting rights. This discount is largely attributed to their exclusion from major indices.

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• Chunil Express operates in the highly competitive South Korean passenger transport industry, facing significant pressure from substitutes like high-speed rail. Its core business is supplemented by real estate leasing and oil distribution.
• The company’s financial performance is extremely weak, characterized by several years of net losses, negative profit margins, and volatile, often negative, operating and free cash flow. This indicates significant operational and financial distress.
• Despite poor fundamentals, the company’s valuation is exceptionally high compared to peers. This appears driven by non-operating factors, specifically its significant stake in the Seoul Express Bus Terminal, which is slated for a major redevelopment project, rather than its core business performance.

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• Daejoo Electronic Materials is a key global supplier of silicon anode materials, a next-generation component for electric vehicle (EV) batteries that significantly improves energy density, charging speed, and driving range.
• The company is in a high-growth phase, aggressively expanding its production capacity to meet surging demand from the rapidly growing EV market. This expansion is, however, leading to significant capital expenditure and negative free cash flow.
• While possessing a technological edge and a strong position within the South Korean battery ecosystem, Daejoo faces intense competition from larger players and technology-focused startups, coupled with a high valuation that reflects its growth prospects.

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• DB Inc. is a diversified company with operations in IT services, trading, and electronic materials, heavily focused on the South Korean domestic market.
• The company has demonstrated exceptional top-line and bottom-line growth, with a 3-year net income CAGR of over 100%, yet suffers from highly volatile and often negative operating and free cash flows.
• Valuation appears attractive based on its low P/E and P/B ratios relative to peers and a perfect ‘Value’ score from Smartkarma, but the company’s small market share in a competitive landscape dominated by large conglomerates presents significant risks.

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• E KOCREF CR-REIT is a South Korean real estate investment trust primarily focused on acquiring, managing, and leasing commercial properties, with a portfolio concentrated in office buildings.
• The REIT offers a high dividend yield, which is a key attraction for income-focused investors. However, this is contrasted by a recent history of declining net income, earnings per share, and dividend payouts over the last three years.
• The company exhibits a passive, stagnant strategy with no visible pipeline for external growth through acquisitions or development projects, relying solely on modest rental escalations from its existing portfolio for income growth.

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• Enzychem is a clinical-stage biotechnology company with a dual business model: a high-risk, high-reward drug development pipeline centered on its lead candidate EC-18 (Mosedipimod), and a more stable revenue-generating segment from manufacturing Active Pharmaceutical Ingredients (APIs) and other health products.
• The company’s future is heavily dependent on the clinical and commercial success of EC-18, which has shown positive Phase 2 results for treating Chemoradiation-induced Oral Mucositis (CRIOM). The drug is being explored for a wide range of other inflammatory and oncology-related indications.
• Despite strong historical revenue growth, the company is facing significant financial headwinds, characterized by persistent and substantial net losses, negative operating cash flow, and a declining market capitalization. Profitability remains a distant prospect, contingent on successful drug commercialization or lucrative partnerships.

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• Envioneer is a specialized materials company focusing on high-performance filters and advanced composites, leveraging a proprietary wet-laid processing technology. The company targets growing markets driven by environmental regulations and demand for lightweight materials.
• The company’s financial performance is extremely weak, characterized by significant and accelerating net losses, negative operating and free cash flow, and deteriorating margins. This raises substantial concerns about its operational efficiency and path to profitability.
• Despite positive industry tailwinds in pollution control and advanced materials, Envioneer‘s severe unprofitability and high cash burn rate present significant risks to its long-term viability and ability to capitalize on these market opportunities.

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• Flitto is strategically positioned at the intersection of crowdsourced human intelligence and AI, creating a flywheel where translation services generate proprietary data to train AI models.
• The company has demonstrated a significant operational inflection point, turning substantial losses in 2023 into strong profitability and positive cash flow in 2024 and 2025, driven by exponential revenue growth.
• Flitto is a key beneficiary of the burgeoning AI training data market, which is experiencing rapid growth fueled by the global demand for more sophisticated and accurate large language models (LLMs).

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• Curexo is a South Korean medical robotics company transitioning from a medical device distributor to a technology-driven developer of surgical and rehabilitation robots, targeting the high-growth orthopedic and neurological fields.
• The company has secured key regulatory approvals for its core products (CUVIS-joint, CUVIS-spine, Morning Walk) in major markets including the USA (FDA), Europe (CE), and South Korea (MFDS), paving the way for global commercialization.
• Financial performance is characterized by strong revenue growth but significant volatility in profitability and cash flow, reflecting its high-growth, high-investment phase. The company’s high valuation multiples suggest the market is pricing in substantial future success in capturing a share of the global medical robotics market.

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• Chung Mong-Joon is gifting a 3.54% stake in HD Hyundai to his eldest son HD Hyundai Chairman Chung Ki-Sung which will raise his stake in HD Hyundai to 9.67%.
• A 3.54% stake is worth 584 billion won. The gift tax payable by Chairman Chung is estimated to be around 350 billion won.
• My base case NAV valuation of HD Hyundai is market cap of 22.6 trillion won or target price of 285,557 won per share which represents 37% higher than current price.

• The “10% Rule” and the SK Hynix Surrogate Play: SK Square’s stock price—which peaked at an all-time high of 2,189,000 KRW on June 22, 2026, before consolidating around 1,025,000 KRW in August 2026—is structurally supported by Article 8 of the Capital Markets Act. Because domestic equity funds cannot invest more than 10% of their assets in a single stock, and SK Hynix’s massive market cap weighting on the KOSPI sits near 25%, institutional funds are forced to buy SK Square (which holds a 20.1% stake in Hynix) as a proxy, narrowing the NAV discount to 39.9% in May 2026.
• Resolution of the 11Street (11st) Dispute: In October 2025, SK Square resolved its two-year deadlock with financial investors (FIs like the National Pension Service) over 11Street. The board approved an internal transaction where SK Square’s subsidiary, SK Planet, acquired 100% of 11Street’s equity for 467.3 billion KRW, allowing FIs to recover their principal in full and shielding SK from fiduciary duty lawsuits under the amended Commercial Act.
• The Operational Hard Law of Corporate Value-up: Sweeping reforms passed under the Lee Jae-myung administration—specifically the July 22, 2025 amendment to Article 382-3 expanding directors’ fiduciary duty of loyalty to include “shareholders as a whole” and the February 2026 amendment making cancellation of acquired treasury shares mandatory—have forced SK Square’s board to pivot from voluntary targets to hard structural compliance, pushing executive KPIs to target an NAV discount of under 30% by 2028.

• Lunit is a pioneering medical AI company poised for significant growth, driven by its clinically validated AI solutions for cancer screening (Lunit INSIGHT) and treatment (Lunit SCOPE).
• The company is rapidly expanding its global footprint through strategic partnerships with major medical device manufacturers like GE Healthcare, Philips, and Fujifilm, and the recent acquisition of Volpara Health, which significantly strengthens its U.S. market presence.
• While demonstrating explosive revenue growth, the company remains unprofitable due to substantial investments in R&D and global expansion. The path to profitability, targeted for 2027, hinges on continued market adoption, scaling of its recurring revenue models, and successful commercialization of its product pipeline.

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• Inbody is a global market leader in the body composition analysis sector, well-positioned to capitalize on rising global health and wellness trends, increasing obesity rates, and a growing emphasis on preventive healthcare.
• The company’s proprietary Direct Segmental Multi-frequency Bioelectrical Impedance Analysis (DSM-BIA) technology provides a significant competitive advantage, offering high accuracy and reproducibility, which is validated by numerous academic papers and trusted by medical and fitness professionals worldwide.
• Future growth is expected to be driven by expansion into the significantly larger household market, development of data-driven healthcare solutions, and continued penetration of international markets, particularly in North America and Asia.

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• Cowell Fashion operates a diversified business model, encompassing a licensed fashion apparel and cosmetics segment, an electronic components division, and a logistics subsidiary (Logen).
• The company has recently undergone a significant structural change, spinning off its core fashion business into a new entity, Pond Group, in late 2023. This has materially impacted consolidated financial reporting and complicates year-over-year analysis.
• Future growth hinges on the successful management of its licensed brand portfolio, including Puma, Adidas, and Calvin Klein, and strategic initiatives like the recent acquisition of Superdry’s Asia-Pacific IP rights and the launch of the BBC Earth apparel line.

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• As the world’s largest wind tower manufacturer, CS Wind is strategically positioned to capitalize on the global transition to renewable energy, with a significant manufacturing footprint in key markets including the U.S., Europe, and Asia.
• The company’s growth is underpinned by strong government incentives for renewable energy, particularly the U.S. Inflation Reduction Act (IRA), which is expected to fuel substantial demand for locally manufactured wind towers.
• Despite a strong revenue growth trajectory, the company faces challenges related to margin volatility, high debt levels, and a reliance on a concentrated number of major wind turbine original equipment manufacturers (OEMs) as customers.

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• Cheryong Industrial is strategically positioned to capitalize on the global power infrastructure ‘super-cycle’, driven by grid modernization, renewable energy integration, and rising electricity demand from data centers and EVs.
• The company has demonstrated robust financial performance, with significant growth in revenue and profitability, supported by a strong dividend payout history, indicating operational efficiency and shareholder-friendly policies.
• While heavily reliant on the domestic South Korean market and key customers like KEPCO, the company is poised for growth through export market expansion, particularly to the U.S., though it faces risks from raw material price volatility and increasing competition.

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• Daewoo E&C is poised for an earnings rebound in 2026, driven by strategic housing and plant division projects, following a period of significant financial underperformance and negative growth.
• The company’s growth strategy is heavily reliant on securing large-scale overseas projects in nuclear power, LNG, and urban development, which carry high execution and geopolitical risks but offer substantial upside.
• Despite a volatile financial track record and a depressed valuation relative to peers, the recent acquisition by Jungheung Group and a renewed strategic focus on international expansion signal a potential turning point for the company.

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• CK Solution holds a specialized, market-leading position in providing essential dry and clean room systems for the secondary battery manufacturing industry, a critical component of the rapidly growing electric vehicle (EV) supply chain.
• The company’s growth is directly tied to the global expansion of battery production, but it faces significant risks from intense competition, recent financial losses, and high stock price volatility.
• Future strategy appears focused on leveraging its core ultra-low humidity technology to diversify into other high-tech sectors such as semiconductors, biotechnology, and data centers, while strengthening its technological edge through strategic partnerships.

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• Daeho AL is a South Korean aluminum products manufacturer facing extreme financial distress, evidenced by a significant swing from profit to a substantial net loss in the most recent fiscal year, alongside highly volatile and often negative cash flows.
• The company is exposed to the cyclicality of its core end-markets, including automotive and construction, and is subject to the inherent volatility of aluminum commodity prices, which directly impacts input costs and profitability.
• Severe corporate governance risks are present, including a recent management control dispute, allegations of embezzlement, and an ongoing review for a potential delisting from the KOSPI exchange, creating significant uncertainty for investors.

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• In my view, SK Hynix (000660 KS) is likely to announce a major shareholder return program soon which could include a combination of share buybacks, cancellations, and special dividends. 
• SK Hynix is able to provide specific details regarding its shareholder return plans starting on 5 August 2026. 
• If we assume SK Hynix to return 40% of its free cash flow as shareholder returns, this would represent 65.2 trillion won in 2026 (representing 5.7% of its market cap). 

• Local chatter says government is pushing early Hynix Samsung shareholder return amid KOSPI weakness. Buybacks would signal support at current levels, counter supply driven memory downside.
• Hynix cited ADR quiet period as reason for limited disclosure, likely tied to Rule 174d window ending August 4. Market expects buyback post expiry, with positioning already tightening Square/Hynix spread.
• Chatter sees Hynix disclosing buyback size and timing soon, likely phased with policy unchanged. Government pressure supports earlier rollout; stay long narrative and lean into Square Hynix pair.

• On 31 July, SK Inc (034730 KS)’s BOD approved the sale of its 70.6% stake in SK Siltron to Doosan Corp (000150 KS) for 2.3 trillion won (US$1.6 billion). 
• If SK Siltron’s EBITDA exceeds a defined threshold, SK Inc. receives an earn-out payment equal to 40% of the excess amount, scaled to its 70.6% equity stake.
• The SK Siltron sale boosts SK Inc. through the initial 2.3 trillion won cash inflow plus further upside from the performance-linked earn-out clause.

• Following extraordinary price swings in Samsung Electronics (005930 KS) last week, combined AUM in KRX-listed 2x long ETFs retreated from its June peak but remains 47% above launch levels.
• Medium-Term returns expose significant performance drag: since launch, Samsung Electronics has fallen 21.0%, while the leveraged index declined 51.8%; net flows also shifted towards outflows in late July.
• This Insight examines AUM, flows and return multiples across the long and inverse products, showing how daily rebalancing can undermine performance even when the directional call appears correct.

• HD Korea Shipbuilding & Offshore Engineering (KSOE) is capitalizing on a robust shipbuilding upcycle, driven by demand for high-value, eco-friendly vessels like LNG and LPG carriers. This has led to record profitability and a strong order backlog providing significant revenue visibility.
• The company is a technology leader, actively developing next-generation solutions such as ammonia dual-fuel engines and AI-driven ‘Virtual Shipyards’ to enhance efficiency and solidify its competitive advantage in an industry shifting towards decarbonization.
• While financial performance has been exceptionally strong, the company operates in a highly cyclical industry and faces key risks including intense competition from Chinese shipbuilders, fluctuations in raw material costs, and dependence on global economic conditions.

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• Mobileleader has transitioned from a mobile sync software provider to a specialized Fintech and AI solutions firm, focusing on high-value enterprise services like Robotic Process Automation (RPA) and Optical Character Recognition (OCR) for the financial sector.
• The company exhibits a starkly contrasting financial profile, with a multi-year trend of declining top-line revenue but an explosive, albeit likely non-recurring, surge in net income and EPS. This divergence raises significant questions about the sustainability of its recent bottom-line performance.
• Valuation appears attractive on a trailing basis (P/E of 1.5x, P/B of 0.6x), but this is skewed by the anomalous 2025 net income. High uncertainty and volatile financial metrics warrant a cautious outlook despite strong scores on several factors.

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• Lotte Fine Chemical (LFC) is transitioning its portfolio towards high-value-added specialty products, particularly in cellulose derivatives and electronic materials, to mitigate the cyclicality of its commodity chemical business.
• The company is a key player in the burgeoning clean energy sector, leveraging its position as Asia’s largest ammonia distributor to pioneer green ammonia and hydrogen supply chains, including the world’s first commercial ammonia bunkering for marine fuel.
• Financial performance has been volatile, with a significant recovery in profitability in 2025 driven by improved market conditions for chlorine-based products and strong demand for electronic materials. However, the company faces challenges from a broader downturn in the commodity petrochemical sector.

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• Lotte Shopping is undergoing a strategic transformation focused on enhancing profitability in its core domestic retail segments while aggressively expanding its footprint in high-growth Southeast Asian markets, particularly Vietnam and Indonesia.
• The department store division remains the primary growth and profit driver, benefiting from a rebound in tourist spending and strong demand for luxury goods. However, the hypermarket and e-commerce segments face intense competition and are undergoing restructuring to improve performance.
• While the company has strengthened its financial position through asset revaluations and has a clear long-term growth strategy (‘Transformation 2.0’), it faces risks related to the highly competitive South Korean retail landscape, potential liquidity concerns within the broader Lotte Group, and the execution risk of its overseas expansion.

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• Market Leader with Aggressive Global Expansion Strategy: Mirae Asset Securities, formerly Mirae Asset Daewoo, is South Korea’s largest securities firm by market capitalization and assets. The company is actively pursuing a global expansion strategy, with significant acquisitions in India (ShareKhan) and the US, diversifying its revenue streams and reducing reliance on the domestic market.
• Strategic Focus on Digital Transformation and New Growth Engines: The firm is heavily investing in digital innovation, including AI-powered wealth management (WealthSpot), robo-advisors, and building a next-generation financial ecosystem for digital assets and tokenization. Strategic investments in high-growth private companies like SpaceX further underscore its forward-looking approach.
• Exposure to Market Volatility and Heightened Competition: As a securities firm, earnings are inherently tied to the cyclicality of capital markets. The company faces intense competition in the domestic South Korean market and potential risks associated with its overseas alternative investments, particularly in commercial real estate, which require careful risk management.

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• Global Expansion Driving Growth: Amorepacific is successfully rebalancing its geographic exposure, with significant growth in North America and EMEA offsetting challenges in Greater China. Overseas sales are a key driver of recent performance, with North American sales surging and European markets showing strong momentum, positioning the company for diversified global growth.
• Strong Brand Portfolio and Innovation: The company possesses a robust portfolio of over 30 brands, including global players like Sulwhasoo, Laneige, and Innisfree. A historical commitment to R&D, evidenced by creating the world’s first cushion foundation, continues to drive product innovation and market leadership in the K-beauty space.
• Strategic Focus on High-Growth Areas: Management has outlined a clear long-term vision, “Create New Beauty,”targeting a top-three position in global premium skincare. This strategy involves focusing on high-potential categories like derma-beauty and wellness, enhancing digital capabilities through AI transformation, and streamlining operations to improve profitability.

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• Samsung Electronics (005930 KS) jumped +26.8% on Friday, July 31, 2026, primarily driven by a sharp broader market rebound and aggressive short-covering across South Korean chipmakers following a three-day selloff.
• Many are trying to assess if Samsung Eelectronics is done with the sell-off/downtrend that started in June. The long-term bottom cannot be forecasted (we will only know in retrospective).
• This short-term analysis aims at detecting trend patterns that statistically precede certain move sizes, and use that knowledge to identify price targets, to anticipate trend reversals.

• Rice is so important in Asian cooking, including in Korea. Because rice is consumed nearly every day in most Korean households, the electric rice cookers are highly used. 
• Cuckoo Holdings (192400 KS) is the market leader in the electric rice cookers market in Korea with market share of nearly 70% or more.
• Valuations are cheap with EV/EBITDA of 2.6x and P/E of 6x. Dividend yields are now more than 6%.