Daily Brief South Korea: Miwon Specialty Chemical, HD Hyundai Marine Solution , Korea Stock Exchange KOSPI 200 and more

In today’s briefing:

Passive Flow Action Around Kumyang: Eyes on Miwon SC for the Play
Recent Block Deal Sale on HD Hyundai Marine Solution and Headwinds on Korean Shipbuilding Sector
KOSPI 200 – Upcoming BOK Rate Decision: Navigating Market Moves and Profit Opportunities

Passive Flow Action Around Kumyang: Eyes on Miwon SC for the Play

KRX will replace Kumyang with the top backup from Materials—Miwon Specialty Chemical (268280 KS)—based on the last rebalancing.
Kumyang jumped 15% today, but it’s likely just speculative mania off the battery sector bounce—not a sign they dodged KRX’s penalty.
Kumyang still trades like a casino, and with this trade volume, its KOSPI 200 exit likely has minimal passive impact. The cleaner trade is on the inclusion name.

On 19 February, KKR sold 2 million shares (4.49%) stake in HD Hyundai Marine Solution at 147,500 won (9.3% discount to the previous day’s closing price), representing 295 billion won.
Therefore, we would argue that these major shipbuilding shares in Korea (such as HD Hyundai Heavy Industries and Hanwha Ocean) could face more difficult headwinds in the coming months.
KKR’s timing of its block deal sale of HD Hyundai Marine Solution also reflects its attempt to partially sell its shares while the stock price is still at lofty levels.

The Bank of Korea is expected to cut interest rates to 2.75% on 25 February 2025. The decision, however, is not expected to be unanimous and some analysts argue against.
Historical data from 120 BoK announcements and subsequent moves in the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX EQUITY) is examined.
Options market pricing seems to lean toward a “surprise and no-change” outcome. Traders can seek opportunities with short straddles or long puts depending on anticipated outcomes.

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