In today’s briefing:
- Hana Micron Split Cancellation: Trades Targeting Position Unwinding and Korea Discount Compression
- A Disappointment in the Works for New Dividend Tax Policy in Korea?
- LG CNS IPO Lockup Expiry – US$1.1bn Release, with PE Well in the Money
Hana Micron Split Cancellation: Trades Targeting Position Unwinding and Korea Discount Compression
- The split’s cancellation caught event-driven traders off guard, squeezing shorts and sparking short-covering flows, likely boosting the stock near term and removing governance overhang for a potential rerate.
- Passive flow shifts as spinco’s planned KOSDAQ 150 inclusion is canceled, reversing early index rebalancing and pre-positioning by passive investors.
- Hana Micron stays in the index, so no major passive outflows—just some trimming. Trade the short-cover pop, watch for passive cleanup dips as potential re-entry points.
A Disappointment in the Works for New Dividend Tax Policy in Korea?
- There is a brewing disagreement among many members of the National Assembly in Korea regarding the new dividend tax policy.
- A key controversial issue is dividend taxes on dividends exceeding 300 million won. There is a room for some disappointment in the works regarding tax reductions on dividends.
- Instead of 25% tax rate for this dividend income bracket (exceeding 300 million won), there has been an increasing pressure by the ruling party to raise this rate to 35%.
LG CNS IPO Lockup Expiry – US$1.1bn Release, with PE Well in the Money
- LG CNS (064400 KS) raised around US$825m in its Korea IPO in February 2025. LG CNS is a South Korean information technology company.
- The shares didn’t do much at listing and have only recently moved higher to trade above its IPO price.
- In this note, we will talk about the lock-up dynamics and updates since our last note.
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