In today’s briefing:
- Lee Jae-Myung’s Campaign Pledge – Cancellation of Treasury Shares
- Lee Jae-Myung’s Policies Likely to Negatively Impact Korean Banks
- DN Solutions IPO – Tariffs, Peer Correction Don’t Help
Lee Jae-Myung’s Campaign Pledge – Cancellation of Treasury Shares
- Lee Jae-Myung (who is leading in most election polls) has mentioned cancellation of treasury shares as one of the key campaign pledges to improve the corporate governance in Korea.
- If the cancellation of these shares becomes mandatory, the SK Group and Lotte Group will be most affected.
- We provide a list of 21 stocks in KOSPI200 that have the highest ratios for treasury shares/total outstanding shares. These stocks could receive more attention in the next several months.
Lee Jae-Myung’s Policies Likely to Negatively Impact Korean Banks
- Among the various industries, the banking sector could be negatively impacted if Lee Jae-Myung becomes the next President of Korea.
- Lee Jae-Myung has pledged providing a “basic loan” of 10 million won per citizen which is likely to negatively impact the Korean banks since it lacks rigorous credit checks.
- There is an increasing likelihood that Lee Jae-Myung could raise the pressure on local banks to share the responsibility of social policies by contributing more money to support them.
DN Solutions IPO – Tariffs, Peer Correction Don’t Help
- DN Solutions (298440 KS) (DNS) aims to raise around US$1.1bn in its Korea IPO via selling a mix of primary and secondary shares.
- DNS is engaged in the manufacture and sale of machine tools and the business of automation solutions and services related thereto.
- In our previous note, we looked at the company’s past performance and valuations. In this note, we talk about the updates since then.
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