Daily Brief South Korea: Hanjin KAL Corp, PharmaResearch, Kepco Engineering & Construction and more

In today’s briefing:

Why Late August Could Be the Pivot Point for the Hanjin KAL Trade?
PharmaResearch Spin-Off: A Textbook Case Study of Destroying Shareholder Value
KEPCO E&C (052690.KQ) – Nuclear Tailwinds, Proprietary Edge, and Execution Challenges

Why Late August Could Be the Pivot Point for the Hanjin KAL Trade?

KDB just signaled they’ll offload their Hanjin KAL stake post-merger, likely in 2027—ending speculation they’d stay long-term to back Cho Won-tae.
The 9% held by Daishin and Eugene PEs may hit the market in August, with LPs likely to cash out—Hoban grabbing it could flip the whole Hanjin KAL setup.
If Hoban grabs the 9% PE stake in August, it could trigger a pre-2027 bidding war—possibly even a tender offer—to lock down float. This is the key near-term pivot.

Last week, PharmaResearch announced that it has approved a corporate spin-off, to separate the existing company into two distinct entities including PharmaResearch Holdings (surviving entity) and PharmaResearch (newly created entity).
PharmaResearch spin-off is a textbook case study of destroying shareholder value. Minority shareholders should oppose this deal.
The spin-off ratio is based on a pure net asset basis, not taking into consideration the future earnings and cash flow streams of the company’s most important product line Rejuran.

KEPCO E&C is well-positioned to benefit from the global revival in nuclear power, with strong domestic visibility and growing international interest in its engineering capabilities.
Its proprietary APR1400 reactor platform anchors the business, supported by verticals in O&M, decommissioning, and green energy EPC.
While earnings have grown sharply on margin gains, high valuations and project execution risks—particularly overseas—warrant careful monitoring.

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