Daily Brief South Korea: Samsung Electronics Pref Shares, HD Hyundai Marine Solution , Korea Ratings and more

• Kim Yong-beom proposed cutting eligibility to 25%+ payout firms and hinted the Presidential Office may slash the dividend tax ceiling to 25%, potentially the boldest move yet.
• Short-Term spotlight: large-cap 25–40% payout stocks, led by Samsung Elec and Hyundai Motor. Kim Yong-beom hinted the Presidential Office wants them included to drive dividend growth.
• Big-Cap 25–40% payout stocks, especially Samsung Elec and Hyundai Motor, could see heavy flows, with their preferred shares poised to outperform in the near term.

• In this insight, we highlight stocks that have been highlighted by locals as potential inclusion/exclusion candidates in KOSPI200 and major global index rebalance in 4Q25.
• The five potential inclusion candidates include Paradise, Asia Holdings, LG CNS, APR, and HD Hyundai Marine Solution. 
• The five potential exclusion candidates include TCC Steel, KG Mobility, Dentium, Orion Corp, and LG H&H. 

• Dominant Market Position: Korea Ratings is one of the top three credit rating agencies in South Korea, an oligopolistic market with extremely high barriers to entry due to stringent licensing requirements and the need for a long-standing reputation.
• Stable Financials with Strong Resilience: The company exhibits a flawless balance sheet, consistent profitability, and robust cash flow generation, underscored by a Smartkarma Resilience score of 5/5. Its business model is inherently tied to the recurring need for corporate debt issuance, providing a stable revenue base.
• Strategic International Partnership: As a subsidiary of Fitch Ratings, Ltd., Korea Ratings benefits from global best practices, sophisticated rating methodologies, and an enhanced international network, strengthening its competitive edge in the domestic market.

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