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South Korea Archives | Page 13 of 126 | Smartkarma

Aug 07
0

Daily Brief South Korea: Lg Innotek, Korea Stock Exchange KOSPI 200, Cosmax Inc and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korea: 3 Potential Index Deletions in August; Positioning Watch
  • A Hidden Trading Angle from Dividend Tax Reform: Tax Timing Creates Dividend Trap Risks
  • Korean Government Confirms Visa-Free Entry of Group Tourists from China to South Korea

Korea: 3 Potential Index Deletions in August; Positioning Watch

By Brian Freitas

  • There are 3 stocks in Korea that could be deleted from a global index in August and that will result in large selling from passive trackers.
  • Short interest has increased in all 3 stocks since the resumption of short selling. Cumulative excess volume is higher in all stocks over the last couple of months.
  • Given the increase in shorts and positioning, there could be short covering in two of the three stocks. The third could still drop over the next couple of weeks.

A Hidden Trading Angle from Dividend Tax Reform: Tax Timing Creates Dividend Trap Risks

By Sanghyun Park

  • With new tax rules kicking in from FY2026, firms may hold back FY2025 dividends to front-load later, creating potential downside surprise purely from tax-driven deferral, not fundamentals.
  • If FY2025 payouts fall short, dividend names could go ex-div on inflated expectations, then trade heavy — setting up mispricing risk around year-end dividend capture trades.
  • This may weaken post-ex-div price rebounds, creating dividend trap risks and short-term mispricing that traders can exploit via shorts, dip buys, or dividend swap long-short strategies.

Korean Government Confirms Visa-Free Entry of Group Tourists from China to South Korea

By Douglas Kim

  • On 6 August, the Korean government confirmed visa-free entry of group tourists from China to South Korea.
  • The new policy will allow the group tourists from China to visit South Korea on a visa-free basis from 29 September 2025 to end of June 2026.
  • We provide a list of top 20 companies in Korea that are key beneficiaries of the no visa policy for group tour visitors from China to South Korea.

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Aug 06
0

Daily Brief South Korea: Mirae Asset TIGER Fn Semiconductor Top 10 ETF, Ecopro BM , Hana Financial, SK Biopharmaceuticals and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Korea’s Next Policy Momentum Play: Rapid Unfolding of the National Growth Fund
  • Ecopro BM: Another Major Rechargeable Battery Play With A Sharp Improvement In Earnings in 2Q 2025
  • Korean Banks; Keep Buy on Hana (086790 KS), Take Profits on Woori (316140 KS)
  • SK Biopharmaceuticals (326030 KS): Momentum Accelerates With Record High Q2 Profit

Korea’s Next Policy Momentum Play: Rapid Unfolding of the National Growth Fund

By Sanghyun Park

  • From a trading view, no confirmed new ETFs under the National Growth Fund yet; market expects existing ETFs to be the main liquidity and sector play tools instead.
  • Out of the KRW 150tn, ETF flows likely come from the 100tn private pool—conservative case: ~3% (KRW 4.5tn), base case: 5–7%, aggressive: up to 10% (KRW 15tn).
  • Even conservatively, about KRW 3 trillion could flow into sector ETFs, a signficant AUM boost, mainly concentrated in AI, defense, aerospace, and biotech—driving notable inflow impact.

Ecopro BM: Another Major Rechargeable Battery Play With A Sharp Improvement In Earnings in 2Q 2025

By Douglas Kim

  • Ecopro BM reported net profit of 34.3 billion won (up 397% YoY and TB YoY in 2Q25). Profits from its Indonesian investment also contributed to earnings, reaching 40.5 billion won.
  • The European EV market started to turn around in 2Q 2025 driven by OEM new car launches and customer inventory normalization compared to the end of 2024.
  • There are increasing signs of a positive turnaround at Ecopro BM. The company’s excellent results in 2Q 2025 are likely to result in higher earnings revisions by the consensus.

Korean Banks; Keep Buy on Hana (086790 KS), Take Profits on Woori (316140 KS)

By Victor Galliano

  • We stick with Hana Financial as our sole buy in Korean banks; even though it does not top our proprietary scorecard, it remains attractively valued and its returns are improving
  • We downgrade Woori to a neutral from a buy, with Woori now trading at a PBV premium to Hana; historically, this has been an indicator of future poor share performance
  • KB Financial ranks top in our scorecard; KB is one watch, but remains a neutral due to limited appeal in terms of valuation

SK Biopharmaceuticals (326030 KS): Momentum Accelerates With Record High Q2 Profit

By Tina Banerjee

  • SK Biopharmaceuticals (326030 KS) (SKBP) reported record high second quarter earnings in 2Q25 on surging U.S. sales of Xcopri, which surpassed quarterly revenue of $100M for the first time.
  • During 2Q25, revenue increased 32% YoY and 22% QoQ to KRW176B, while operating profit improved at a faster pace of 138% YoY and 141% QoQ to KRW62B.
  • For 2025, SKBP maintained Xcopri U.S. revenue guidance of $420–450M (~KRW570–610B), up 31–40% YoY. With 1H25 revenue of $201M, the company is expected to meet the target.

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Aug 05
0

Daily Brief South Korea: Hyundai Motor, SK Bioscience and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Boston Dynamics – Rights Offering of 1.2 Trillion Won Expected; Potential IPO in 2027/2028 in NASDAQ
  • SK Bioscience (302440 KS): Strong Base Business and IDT Contribution Drive 2Q25 Performance

Boston Dynamics – Rights Offering of 1.2 Trillion Won Expected; Potential IPO in 2027/2028 in NASDAQ

By Douglas Kim

  • There has been an increasing probability that Boston Dynamics (BD) announces a fourth rights offering capital raise worth about 1.2 trillion won (US$870 million) in the next several weeks.
  • All the Hyundai Motor Group related entities are expected to increase their ownership stakes in Boston Dynamics whereas it is expected to decline for Softbank post the capital raise.
  • The current valuation estimates of Boston Dynamics (post capital raise) vary widely from about 4 trillion won to 10 trillion won.

SK Bioscience (302440 KS): Strong Base Business and IDT Contribution Drive 2Q25 Performance

By Tina Banerjee

  • SK Bioscience (302440 KS) continues to report business recovery, with 2Q25 base business revenue increasing 22% YoY and IDT Biologika revenue increasing sequentially.
  • The company has guided for 2025 revenue of KRW600B+, aided by IDT acquisition. Excluding IDT, base business revenue is expected at ~KRW200B for 2025, up 28% YoY.
  • SKBS has built a large-scale commercial production facility which will serve as a production site for GBP410, a 21-valent pneumococcal conjugate vaccine (PCV21) candidate.

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Aug 04
0

Daily Brief South Korea: KT&G Corporation and more

By | Daily Briefs, South Korea

In today’s briefing:

  • 60 Stocks Screened by Tax Draft Setup — Short-Term Policy Flow Targets

60 Stocks Screened by Tax Draft Setup — Short-Term Policy Flow Targets

By Sanghyun Park

  • Revisions to the draft are almost certain, but near-term flows will still trade off the current framework—so screening now helps front-run likely winners before the final version lands.
  • Out of 386 stocks with FY1/FY2 consensus data, 60 names screen in based on FY2: payout ≥40% or ≥25% with DPS up 5%+ vs. 3Y avg.
  • This tax reform will still drive near-term KOSPI flow—these screened names are core policy plays worth building setups around.

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Aug 03
0

Daily Brief South Korea: SK Hynix and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Inside Samsung’s HBM3E Chicken Game

Inside Samsung’s HBM3E Chicken Game

By Sanghyun Park

  • Samsung’s playing its old game—sacrificing margins to shake rivals—aiming to disrupt DRAM and win HBM4, assuming it clears NVIDIA’s HBM3E qual test soon.
  • Local intel says no official word from Samsung yet, but the street thinks qual’s done—hence Samsung’s bold HBM3E tone and oversupply warning on the call.
  • There’s urgency—Samsung’s undercutting Hynix now to stop them from reinvesting cash into DRAM fab expansion, a playbook Samsung once dominated with.

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Aug 02
0

Daily Brief South Korea: Samyang Comtech, Korea Stock Exchange Kospi Index, Hyundai Motor, Samsung Electronics, HK inno.N and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Samyang Comtech IPO Book Building Results Analysis
  • Tax Pivot in Play: Ruling Party Rethink Could Flip Market Narrative
  • Tech Supply Chain Tracker (01-Aug-2025): Hyundai chief joins Samsung, Hanwha in US tariff blitz.
  • Samsung Electronics (005930 KS) Tactical Outlook After Disappointing Earnings
  • HK Inno.N (195940 KS): Mixed 2Q Result; Pipeline Progress to Maintain Positive Momentum

Samyang Comtech IPO Book Building Results Analysis

By Douglas Kim

  • Samyang Comtech completed solid book building results. The IPO price has been finalized at 7,700 won per share, which was at the high end of the IPO price range.
  • A 48.4% of the total IPO shares are under various lock-up periods lasting from 15 days to 6 months. This is a bullish signal. 
  • Our valuation analysis suggests target price of 13,187 won, which represents a 71% upside from IPO price. Given the excellent upside, we have a Positive view of this IPO.

Tax Pivot in Play: Ruling Party Rethink Could Flip Market Narrative

By Sanghyun Park

  • Today’s selloff spooked the ruling party, prompting top lawmakers to signal tax tweak talks less than 24hrs after rollout — and they’re clearly watching the tape.
  • Cap gains threshold likely gets bumped to ₩3–5bn. STT hike stays. Div tax top rate may drop from 35% to 25% amid internal party push.
  • President Lee’s focused on pragmatism—cutting household debt and boosting corporate liquidity. Expect the tax narrative to pivot next week, sending local market sentiment in a new direction from Friday’s tape.

Tech Supply Chain Tracker (01-Aug-2025): Hyundai chief joins Samsung, Hanwha in US tariff blitz.

By Tech Supply Chain Tracker

  • Hyundai chief partners with Samsung and Hanwha in US tariff push, showing collaboration between major companies to address trade issues.
  • Arm CEO considers in-house chip production, signaling a strategic shift for the company towards more control over its manufacturing process.
  • BOE secures half of Apple’s MacBook screen orders, displacing LG Display, showcasing the competitiveness in the display market.

Samsung Electronics (005930 KS) Tactical Outlook After Disappointing Earnings

By Nico Rosti

  • Samsung Electronics (005930 KS) 2Q earnings have been somehow disappointing for investors.
  • We don’t dissect the earnings details, as market reactions—regardless of headlines—almost always fall within the behavioral range defined by our model.
  • What we see right now is FEAR: Samsung Electronics was rallying hard, reached the tails area in our model, then retreated back sharply after the earnings.

HK Inno.N (195940 KS): Mixed 2Q Result; Pipeline Progress to Maintain Positive Momentum

By Tina Banerjee

  • HK inno.N (195940 KS) reported 2Q25 result, with double-digit revenue growth and decline in operating and net profit. Continued strong sales of prescription drug business remained the key driver.
  • During 2Q25, domestic outpatient prescription sales of K-CAB increased 14% YoY to KRW53B. Next major trigger for K-CAB will be the U.S. filing for both EE and NERD in 4Q25.
  • Recently, the company’s investigational new drug IN-115314 advances to Phase 3 trial for the treatment of atopic dermatitis in dogs. If approved, IN-115314 has blockbuster revenue potential.

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Aug 01
0

Daily Brief South Korea: Hanmi Semiconductor, Samsung Electronics, LG CNS, Wonik Holdings Co., Ltd, Nh Investment & Securities, Hyundai Motor India and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Samsung Earnings Call Signals Samsung-Hanmi HBM4 Talks: Catalyst Brewing for Both Stocks
  • Samsung 2Q25: Poor Quarter, Poor Outlook for 2H25, Management Bullish on HBM / Foundry Catch Up
  • LG CNS: End of Lockup for 67.5% of Outstanding Shares on 5 August
  • Wonik’s Governance Angle: A Potential First Target in Korea’s New Legal Playbook
  • NH Investment & Securities – Capital Raise of 650 Billion Won
  • Hyundai Motor India: All Eyes on a Healthy Festive Sales

Samsung Earnings Call Signals Samsung-Hanmi HBM4 Talks: Catalyst Brewing for Both Stocks

By Sanghyun Park

  • Samsung confirmed PRA sign-off for 1c HBM4, shipped samples to NVIDIA, went full redesign on base die, and is in talks with vendors like Hanmi for hybrid bonding gear.
  • From a trading POV: Samsung pivoting to Hanmi signals “speed over pride”—a clear tell they’re serious about ramping HBM4 fast, even if it means breaking from vertical integration.
  • For the move to stick, yields and customer wins matter — but Hanmi’s stepping up, and this could give Samsung’s HBM4 story a real leg up if it plays out.

Samsung 2Q25: Poor Quarter, Poor Outlook for 2H25, Management Bullish on HBM / Foundry Catch Up

By Nicolas Baratte

  • OP pre-announced, the details aren’t inspiring. Margins decline in TV, Semi. Only Smartphone is resilient. 2H25 demand outlook is weak for TV, Smartphone.
  • Confident tone on HBM growth, qualifications, ASP increase. Several contradictions: Samsung endorses theory of HBM price pressure (how’s that positive?); HBM3E is already 80% of HBM revenue (where’s the upside?)
  • Consensus is revising up slowly, stock is going up sharply. This assumes a large turnaround in memory / HBM / Foundry. 

LG CNS: End of Lockup for 67.5% of Outstanding Shares on 5 August

By Douglas Kim

  • There will be an end of lock up of 67.5% of LG CNS (064400 KS)’s shares starting 5 August (6 months post IPO).
  • The shares subject to the release are those held by the largest shareholder LG Corp (003550 KS) and Crystal Korea (Macquarie).
  • We would emphasize on positive developments on LG CNS (solid operating results and stablecoin rollout in Korea) which could be bigger factors than potential selling by the second largest shareholder.

Wonik’s Governance Angle: A Potential First Target in Korea’s New Legal Playbook

By Sanghyun Park

  • With Korea’s revised Commercial Act live, investors ask who’ll be the first test case — all eyes are on Wonik Holdings amid chatter on new shareholder litigation angles.
  • Looks like a typical holdco, but Horizon—a paper company owned by the chairman’s kids—controls Wonik, hiding real power and raising new direct shareholder legal risks under revised rules.
  • July 1 triggered Wonik’s 13% surge as bipartisan support for the Commercial Act locked in, with activists quietly gearing up despite fading momentum since.

NH Investment & Securities – Capital Raise of 650 Billion Won

By Douglas Kim

  • NH Investment & Securities Co (005940 KS) announced that it plans to raise 650 billion won through a third party paid-in capital allocation.
  • Expected price of the capital raise is 20,150 won. Nonghyup Financial Group is expected to fund this capital raise. 
  • We believe there is likely to be some net selling of the Korean securities companies in the next several months due to disappointing new tax policies (especially for dividends). 

Hyundai Motor India: All Eyes on a Healthy Festive Sales

By Sreemant Dudhoria,CFA

  • Hyundai Motor India (HYUNDAI IN) Q1FY26 results saw exports and rural markets as shining stars, offsetting weak domestic urban demand; rural penetration reached an all-time high of 22.6%.
  • Gross margin improved QoQ driven by localization gains, better model mix, and increased export contribution despite higher discounting.
  • Outlook positive for H2FY26 with festive demand, new product launches, and Pune plant ramp-up, though profitability may be impacted by higher depreciation.

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Jul 31
0

Daily Brief South Korea: KB Financial, SK Innovation, SK IE Technology , Daehan Shipbuilding and more

By | Daily Briefs, South Korea

In today’s briefing:

  • ADR Arb on Korean Divvy Names: A Side Play Riding the Policy-Driven Liquidity Wave
  • SK Innovation Cleanup: Watch Out for a Classic NAV Compression Play
  • A Merger Between SK On and SK Enmove + A Massive 8 Trillion Won in Capital Raise
  • SK IE Technology – Capital Raise of 300 Billion Won
  • Daehan Shipbuilding Pre-IPO: Decent Subscription Rates

ADR Arb on Korean Divvy Names: A Side Play Riding the Policy-Driven Liquidity Wave

By Sanghyun Park

  • ETF rebalancing’s key, but still too early to front-run — both use FnGuide screens based on FY1 DPS and prices from 20 days before November-end.
  • Beyond the rebalance noise, ADR-local spreads have been widening — KB hit +6%, Shinhan’s also drifting. Likely tied to the recent liquidity surge in dividend names.
  • ADR arb’s more doable with NXT tightening slippage. With proper FX hedging, it’s a clean side play riding the policy-driven liquidity wave.

SK Innovation Cleanup: Watch Out for a Classic NAV Compression Play

By Sanghyun Park

  • Facing tough fundraising, SK avoided a rights issue, opting for a complex deal to limit dilution and ease investor worries.
  • It all hinges on how the market views SK On’s cleanup plus Enmove’s steady cash flow—SK Innovation looks oversold, making this a decent long setup.
  • Enmove’s stable earnings boost SK On’s P&L, likely triggering a rerate for SK Innovation and setting up a classic NAV compression trade.

A Merger Between SK On and SK Enmove + A Massive 8 Trillion Won in Capital Raise

By Douglas Kim

  • On 30 July, SK Innovation (096770 KS) announced that it plans to merge its subsidiaries SK On and SK Enmove. The merged company will be launched on 1 November.
  • SK Group has announced a massive 8 trillion won capital raise plan involving this deal including paid-in capital increase of 2 trillion won for SK Innovation and SK On each. 
  • We provide three major reasons why we are negative on this merger/capital raise. 

SK IE Technology – Capital Raise of 300 Billion Won

By Douglas Kim

  • SK IE Technology (361610 KS) announced that it plans to raise 300 billion won through a third party paid-in capital allocation. 
  • SK IE Technology plans to issue 10.5 million new shares (14.7% of outstanding shares). Expected price of capital raise is 28,600 won (2.1% lower than current price). 
  • We have a Negative View of SK IE Technology as well its plans to raise capital worth 300 billion won.

Daehan Shipbuilding Pre-IPO: Decent Subscription Rates

By Nicholas Tan

  • Daehan Shipbuilding (439260 KS) raised US$370m in its upcoming Korean IPO.
  • It specializes in the design and construction of medium-sized (Aframax) and semi-large sized (Suezmax) vessels for crude oil and petroleum product transportation.
  • In this note, we examine the IPO dynamics, and look at the firm’s valuation.

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Jul 30
0

Daily Brief South Korea: Hana Micron Inc, KB Financial, LG CNS and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Hana Micron Split Cancellation: Trades Targeting Position Unwinding and Korea Discount Compression
  • A Disappointment in the Works for New Dividend Tax Policy in Korea?
  • LG CNS IPO Lockup Expiry – US$1.1bn Release, with PE Well in the Money

Hana Micron Split Cancellation: Trades Targeting Position Unwinding and Korea Discount Compression

By Sanghyun Park

  • The split’s cancellation caught event-driven traders off guard, squeezing shorts and sparking short-covering flows, likely boosting the stock near term and removing governance overhang for a potential rerate.
  • Passive flow shifts as spinco’s planned KOSDAQ 150 inclusion is canceled, reversing early index rebalancing and pre-positioning by passive investors.
  • Hana Micron stays in the index, so no major passive outflows—just some trimming. Trade the short-cover pop, watch for passive cleanup dips as potential re-entry points.

A Disappointment in the Works for New Dividend Tax Policy in Korea?

By Douglas Kim

  • There is a brewing disagreement among many members of the National Assembly in Korea regarding the new dividend tax policy.
  • A key controversial issue is dividend taxes on dividends exceeding 300 million won. There is a room for some disappointment in the works regarding tax reductions on dividends.
  • Instead of 25% tax rate for this dividend income bracket (exceeding 300 million won), there has been an increasing pressure by the ruling party to raise this rate to 35%.

LG CNS IPO Lockup Expiry – US$1.1bn Release, with PE Well in the Money

By Sumeet Singh

  • LG CNS (064400 KS) raised around US$825m in its Korea IPO in February 2025. LG CNS is a South Korean information technology company.
  • The shares didn’t do much at listing and have only recently moved higher to trade above its IPO price.
  • In this note, we will talk about the lock-up dynamics and updates since our last note.

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Jul 29
0

Daily Brief South Korea: Doosan Enerbility, Samsung Electronics, APR and more

By | Daily Briefs, South Korea

In today’s briefing:

  • Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade
  • My Take on Samsung’s Big Foundry Deal with Tesla
  • Samsung Electronics Clinches a Huge Chip Contract from Tesla
  • APR: Time To Take Profits (Three Major Reasons)

Solactive Global Uranium & Nuclear Components Index Rebalance: Two Adds & US$1.4bn Trade

By Brian Freitas

  • Solactive has announced the constituent changes for the Global Uranium & Nuclear Components Index with implementation at the close on 31 July.
  • Nano Nuclear Energy (NNE US) and Atha Energy Corp (ATHA CN) will be added to the index. Estimated one-way turnover is 16.3% resulting in a round-trip trade of US$1.36bn.
  • There are only 3 trading days to implementation of the changes and we’d watch out for big moves on stocks that have more than 2x ADV to trade.

My Take on Samsung’s Big Foundry Deal with Tesla

By Sanghyun Park

  • The A16 chip Samsung fabs is mainly for real-time inference in Tesla’s FSD cars, not data-center training, which remains dominated by Dojo and NVIDIA hardware.
  • If Tesla’s deal includes AI chips with HBM, it’s a major catalyst; if just A16, it’s not proof HBM yield issues are solved.
  • Tesla’s deal isn’t a sure sign Samsung’s HBM4 passed NVIDIA’s qual tests, but it’s a key reference boosting market hype—time to consider a Samsung long, SK Hynix short setup.

Samsung Electronics Clinches a Huge Chip Contract from Tesla

By Douglas Kim

  • On 28 July, it was reported that Samsung Electronics (005930 KS) clinched a huge chip contract worth $16.5 billion from Tesla (TSLA US). 
  • This is a major win for Samsung Electronics since it is one of the largest foundry orders for the company from a single customer in the past decade.
  • Samsung Electronics is trading at attractive valuations. It is trading at P/E of 12.3x, P/B of 1.0x, and EV/EBITDA of 3.6x in 2026, based on consensus estimates.

APR: Time To Take Profits (Three Major Reasons)

By Douglas Kim

  • There are three major reasons why we would take profits on APR (278470 KS) at current levels. 
  • They include lofty valuations, increased competition, and share price decline post large scale dividend payout announcement. 
  • APR could be facing especially tough competition for the beauty device products from Amorepacific, LG H&H, and others especially starting in 4Q 2025. 

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