Daily Brief South Korea: MNC Solution, Samsung Electronics Pref Shares, Ecopro BM , Korea Stock Exchange KOSPI 200, CJ Corp, Celltrion Inc and more

• In this insight, we provide an early look at the potential additions and deletions to KOSPI200 rebalance in December 2025.
• The seven potential additions are up on average 200% YTD. The eight potential deletion candidates are down on average 8.8% YTD. KOSPI is up 44.7% YTD.
• The average market cap of the seven potential additions is 3.5 trillion won. The average market cap of the seven potential deletion candidates is 0.6 trillion won.

• Pref spread looks stretched near 21–22%, likely a pullback soon. Structural re-rate needs a major Samsung narrative shift.
• A surprise Samsung special dividend could pivot the pref discount; H2 FCF, Q3 prelims, and lighter capex are the key swing factors.
• Expect a short-term pullback; but still stay cautious. Watch the memory upcycle and consider a discount-narrowing trade around late September.

• On 24 September, Ecopro Co confirmed that it will be raising 800 billion won through a PRS using its stake in Ecopro BM as the base asset.
• Ecopro BM has a market cap of 11.3 trillion won. A PRS worth 800 billion won represents 7.1% of Ecopro BM’s market cap. 
• All in all, we believe this PRS deal worth 800 billion won is likely to negatively impact both Ecopro Co and Ecopro BM.

• Current gains echo past moves that required lengthy consolidation, suggesting risk management is prudent.
• Volatility trends remain middling, but skew steepness points to cost-effective downside structures.
• Rally momentum slows as Kospi reaches levels where past reversals have occurred versus SPX.

• CJ Corp‘s valuation and growth are increasingly driven by its unlisted subsidiary, CJ Olive Young, which is capitalizing on the global K-beauty trend and showing strong topline growth and margin expansion.
• The holding company’s overall financial performance is mixed, with the stellar results from CJ Olive Young being partially offset by disappointing performance at other major listed subsidiaries in the food, logistics, and media sectors.
• Key forward-looking catalysts include the potential IPO of CJ Olive Young and the return of Chinese tourists to Korea, while significant risks loom from potential US tariffs on cosmetics and the persistent underperformance of its diversified portfolio.

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• Celltrion Inc (068270 KS) is acquiring Eli Lilly’s New Jersey biopharmaceutical production plant for KRW460B. It also plans to expand capacity of the plant, with an additional investment of KRW700B.  
• With this acquisition, Celltrion has completely eliminated U.S. tariff risks and secured a unified local supply chain encompassing production and sales of its flagship products.
• Celltrion has signed a CMO agreement with Eli Lilly, which will secure additional revenue stream for the company and accelerate the return on investment.