In today’s briefing:
- Fresh Intel Just in on KRX’s L2 Warning Revamp
- Sale of 1.1 Trillion Won Worth of Hanwha Energy by Kim Dong-Won and Kim Dong-Sun
- Korea Zinc: US-Backed Smelter Lifts Strategic Floor; Dilution & Control Risks Weighed
- Shinsegae I&C – The Next Tender Offer Target by E-Mart?
Fresh Intel Just in on KRX’s L2 Warning Revamp
- “Effective immediately” matters for L2 exit timing and re-flag risk; KRX confirmed year-end announcement with instant rollout, making year-end the key flow inflection if big L2 names get exempted.
- Large caps (₩10tn+ market cap) pulled from market-warning universe, with L2 tagging now factoring relative outperformance, not just absolute price gains, to curb overuse.
- Of 33 L2 names, five KOSPI blue chips see re-flag risk drop after their mandatory 10-day lockup; near-term trades focus on timing these expiries for relief rallies and flow resets.
Sale of 1.1 Trillion Won Worth of Hanwha Energy by Kim Dong-Won and Kim Dong-Sun
- Kim Dong-Won and Kim Dong-Sun decided to sell nearly 1.1 trillion won (US$750 million) worth of Hanwha Energy.
- Through this sale, Hanwha Energy’s value is estimated at approximately 5.5 trillion won.
- This large scale stake sale could result in negative sentiment/impact on Hanwha Corp and Hanwha Systems.
Korea Zinc: US-Backed Smelter Lifts Strategic Floor; Dilution & Control Risks Weighed
- US-Backed US$7.4bn smelter embeds Korea Zinc in US critical-minerals supply chains, lifting long-term strategic relevance and valuation floor.
- Shares eased after an initial spike as dilution, low JV ownership, governance litigation risk, and long-dated cash flows weighed on near-term sentiment.
- We retain a ₩2.1m TP (~30% upside), supported by TC recovery, rare-metals margins, buybacks, and partial governance-discount compression.
Shinsegae I&C – The Next Tender Offer Target by E-Mart?
- In the past two years, E Mart Inc (139480 KS) has announced two tender offers of its affiliates including Shinsegae E&C (September 2024) and Shinsegae Food (031440 KS) (December 2025).
- We believe the next target of a tender offer by E-Mart could be Shinsegae Information & Communication Co (035510 KS) in 2026/2027.
- We provide three main reasons why E-Mart may try to conduct a tender offer of Shinsegae I&C in 2026/2027.
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