South Korea Archives | Page 14 of 126

Jul 28

Daily Brief South Korea: Hyundai Motor , Hyosung Heavy Industries Corp and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Korean Policy Tailwinds: Preferred Shares Rerating Play
Hyosung Heavy (298040 KS): Positioning Not Extreme as Index Inclusion Nears

Korean Policy Tailwinds: Preferred Shares Rerating Play

By Sanghyun Park

Most expect prefs to be in policy crosshairs soon—watch for tighter rules on dividends, discounts, and liquidity, plus likely incentives for redemption or cancellation ahead of commons.
If Korea rolls out a pref stock overhaul, long-biased rerate plays could pop—focus on liquid, high-yield large-cap prefs trading at 35%+, yield north of 3%, and solid daily turnover.
Korea Inv, Kumho Petro, CJ Cheil, CJ Corp prefs already screen well; Doosan and Hanwha 3PB could join if dividend hikes materialize on back of strong sub earnings.

Hyosung Heavy (298040 KS): Positioning Not Extreme as Index Inclusion Nears

By Brian Freitas

In an all too familiar sight across a range of stocks across a range of markets, Hyosung Heavy Industries‘ stock price has doubled over the last 3 months.
The increased market cap should result in index inclusion and passive trackers are estimated to buy 358k shares (US$291m; 4.5x ADV) at the close on 26 August.
Hyosung Heavy has outperformed most peers over the last few months but still trades at reasonable relative valuations. Positioning does not appear excessive relative to peers.

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Jul 26

Daily Brief South Korea: SK Telecom, LG Energy Solution and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

SKT Foreign Room Heating Up — Time to Front-Run?
LG Energy Solution: Light At the End of the Tunnel?

SKT Foreign Room Heating Up — Time to Front-Run?

By Sanghyun Park

SKT’s foreign room jumped from 12% to 20% in two months; if the pace holds, 25% is in play by next review, with ongoing foreign outflows from the SIM leak.
FOL shifts from foreign room swings have been a classic long-short play in Korea telcos — and the current setup looks similar, with most SIM leak risks already priced in.
If SKT’s foreign room nears 25%, expect front-running and passive flow imbalances to kick in — a familiar long-short setup that’s historically moved the telco tape early.

LG Energy Solution: Light At the End of the Tunnel?

By Douglas Kim

LG Energy Solution has been on a dark, long tunnel in the past two and half years. However, there is finally some light showing post its excellent 2Q 2025 results.
LG Energy Solution reported much better than expected operating profit in 2Q25. It had operating profit of 492.2 billion won (up 152% YoY) and 56.3% higher than consensus in 2Q25.
The company is showing initial signs of a turnaround, with a significantly better than expected operating profit in 2Q 2025.

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Jul 25

Daily Brief South Korea: Korea Stock Exchange KOSPI 200, SKC Co Ltd, SK Hynix, Samsung Biologics and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Everything to Know About the Year-End CGT-Driven Retail Sell-Off & KOSPI Basis Move
Potential Adds & Deletes in a Major Global Index in August 2025 As Highlighted by Locals in Korea
SK Hynix: Good 2Q, Positive Messages but No 2026 Guidance Means that Market’s Doubts Will Remain
Samsung Biologics (207940 KS): Bumps up Full Year Guidance Amid Strong 2Q Show and Plant 4 Ramp-Up

Everything to Know About the Year-End CGT-Driven Retail Sell-Off & KOSPI Basis Move

By Sanghyun Park

If the CGT threshold drops from ₩5B to ₩1B, year-end retail selling could surge—net sales were ₩14T in Nov–Dec 2023 versus just ₩2.5T in the same period of 2024.
Retail may react strongly this year due to higher unrealized gains and the ₩1B CGT threshold return; about 65% of KOSPI stocks still use year-end dividend record dates.
Odds are high for a classic year-end CGT-driven retail sell-off and a sharp KOSPI cash-futures basis move, fueled by dividend uncertainty we can capitalize on.

Potential Adds & Deletes in a Major Global Index in August 2025 As Highlighted by Locals in Korea

By Douglas Kim

In this insight, we discuss the potential adds and deletes of Korean stocks in a major global index in August 2025 as highlighted by the locals in Korea.
There are about 10 potential additions to the major global index mentioned by various local media accounts. LIG Nex1, Hyosung Heavy Industries, and Doosan Corp are most likely inclusion candidates.
There have been three companies that have been consistently mentioned in numerous local media as potential deletion candidates including LG Innotek, CJ Cheiljedang, and SKC Co.

SK Hynix: Good 2Q, Positive Messages but No 2026 Guidance Means that Market’s Doubts Will Remain

By Nicolas Baratte

2Q25 beats consensus by 5% with a number of unexpected moves: NAND and Commodity DRAM shipments a lot higher than expected, hence weaker ASP (more commodity), margins decline QoQ.
HBM positive messages: HBM sales double in 2025, we now have secured visibility on next year’s demand”, leading to higher capex in 2025, HBM will continue to enjoy strong growth.
But a lack of concrete numbers (HBM, eSSD % of revenue), 2025-26 Capex, capacity increase, etc means that the market will not find grounds to have a more positive view.

Samsung Biologics (207940 KS): Bumps up Full Year Guidance Amid Strong 2Q Show and Plant 4 Ramp-Up

By Tina Banerjee

Samsung Biologics (207940 KS) maintained positive momentum in 2Q25, with consolidated revenue and operating profit rising 11% and 9%, YoY, respectively.
Leveraging on strong 2Q result and successful ramp-up of Plant 4 providing additional momentum, the company has revised annual revenue growth guidance upward to 25–30% YoY from 20–25%.
Going ahead, the company is planning to shed its biosimilars subsidiary, Samsung Bioepis, to “focus on strengthening its core capabilities as a pure-play CDMO.”

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Jul 24

Daily Brief South Korea: Doosan Corp, Hyosung Corporation, Korea Fuel Tech and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Doosan Corp (000150 KS): Global Index Inclusion & A Relative Value Trade
Korea’s Div Tax Overhaul Playbook: Payout Growers Set for Momentum (Screened in Excel)
Korea Small Cap Gem #41: Korea Fuel Tech (FT) Corp

Doosan Corp (000150 KS): Global Index Inclusion & A Relative Value Trade

By Brian Freitas

A doubling of the stock price over the last 3 months could lead to Doosan Corp (000150 KS) being included in a global index in August.
Doosan Corp (000150 KS) has outperformed its peers over the last few months and now trades at a huge valuation premium to its peer group.
The stock is 17% off its recent highs and that provides an opportunity for a relative value trade heading into the index inclusion event.

Korea’s Div Tax Overhaul Playbook: Payout Growers Set for Momentum (Screened in Excel)

By Sanghyun Park

Korea’s first full-scale tax reform in 3 years sets the stage for rate tweaks and deduction shifts—follow-up amendment bills usually get fast-tracked with high legislative priority.
Dividend tax tweak could be the biggest near-term mover—eligibility widens, but tax cut shrinks. Focus shifts to names hiking payout, not just high-yielders—key for positioning.
I screened target names with FY1/FY2 payout data and narrowed to KRW 1T+ stocks showing ≥10% YoY payout growth—likely short-term momentum plays ahead of the tax overhaul.

Korea Small Cap Gem #41: Korea Fuel Tech (FT) Corp

By Douglas Kim

Korea Fuel Tech (123410 KS) is the 41st company in our Korea Small Cap Gem Series.
Korea Fuel Tech (FT) Corp is a Korean automotive components manufacturer specializing in emissions control systems, fuel system parts, and other auto plastic parts.
Three key investment highlights include key beneficiary of growing demand for carbon canisters used in hybrid vehicles, compelling valuations, and sharp increase in operating margins/ROE.

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Jul 23

Daily Brief South Korea: HD Hyundai Heavy Industries , Makus Inc, LIG Nex1 Co, Hyundai Hyms and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

HD Merger: Overblown Policy Risk Creates a Convergence Play Opportunity
Makus: A Textbook Case Study of How Improving Shareholder Value Leads to Surging Share Price
LIG Nex1 (079550 KS): Stock Soars; Momentum Stalls; Global Index Inclusion Next
M&A of Hyundai Hyms – Who Will Buy Controlling Stake?

HD Merger: Overblown Policy Risk Creates a Convergence Play Opportunity

By Sanghyun Park

NAV sets the floor under the proposed bill. That’d cut the swap ratio from 1:0.162 to 1:0.128 — meaning Infracore holders get fewer CE shares than under market pricing.
Unlike the Doosan deal, this one’s unlikely to get walked back. With wide spreads and HD setting a 10% SO cap, the dislocation looks tradable despite appraisal right overhang.
Top holders/NPS hold ~50%, local instos 20%, foreigners 15% and retail the rest. Sentiment’s cautious but not hostile; appraisal risk looks manageable, making this spread a potential convergence play.

Makus: A Textbook Case Study of How Improving Shareholder Value Leads to Surging Share Price

By Douglas Kim

Makus Inc (093520 KS) is a textbook case study in Korea of how improving shareholder value leads to surging share price. Its example is simple and beautiful.
Makus announced that it will cancel a total of 6 million treasury shares (37% of outstanding shares) in the next three years until 2027 to increase shareholder value.
Applying a 15x P/E on EPS of 2,788 won (2027E) results in implied target price of 41,820 won per share, which would be a 67% further upside from current levels.

LIG Nex1 (079550 KS): Stock Soars; Momentum Stalls; Global Index Inclusion Next

By Brian Freitas

LIG Nex1 Co (079550 KS)‘s stock price has doubled over the last 3 months, and the increased market cap could now result in a global index inclusion.
LIG Nex1 Co (079550 KS) has outperformed most of its peers over the last few months and now trades expensive on a range of metrics.
While momentum could take the stock higher, there is a risk of pullback as positioning in the stock is unwound.

M&A of Hyundai Hyms – Who Will Buy Controlling Stake?

By Douglas Kim

The management ownership stake of Hyundai Hyms is up for sale. J&P Private Equity firm which owns 52.88% stake in Hyundai Hyms has sent out teaser letters to potential buyers.
Including a management premium ranging from 30% to 50%, the potential acquisition price (including management premium) could be worth about 481 billion won to 555 billion won.
Since the second largest shareholder, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) (20.89% stake), has the right of first negotiation, the selling side must first negotiate with HD KSOE.

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Jul 22

Daily Brief South Korea: Korea Stock Exchange KOSPI 200, DH Shipbuilding, CJ Corp and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Two New Tax Tweaks Set to Shake Up Korea’s Local Stock Market: Trading Tax & CGT Threshold
DH (Daehan) Shipbuilding IPO Book Building Results Analysis
Korea Surpasses France as Top Exporter of Cosmetics to the USA [CJ Olive Young – Key Beneficiary]

Two New Tax Tweaks Set to Shake Up Korea’s Local Stock Market: Trading Tax & CGT Threshold

By Sanghyun Park

Trading tax gradually dropped from 0.25% in 2020 to 0.15% in 2025, boosting volatility and short-term trades; a hike to 0.25% could cool momentum but widen arbitrage and basis spreads.
If the major shareholder tax threshold drops to ₩1B, year-end retail dumps and Jan buybacks will return—but with less wild swings and more measured short-term fade and momentum trades.
If the tax revamp drops end-July, expect a September Assembly push. Usually effective next January, but like 2023’s cap gains hike, changes might apply immediately in 2025.

DH (Daehan) Shipbuilding IPO Book Building Results Analysis

By Douglas Kim

DH Shipbuilding reported a solid IPO book building results analysis. The IPO price has been finalized at 50,000 won per share (high end of the IPO price range).
At the IPO price of 50,000 won, the expected market cap will be 1.9 trillion won. DH Shipbuilding will start trading on 1 August.
Our base case valuation of DH Shipbuilding is target price of 67,576 won per share, which represents a 35% upside to the IPO price.

Korea Surpasses France as Top Exporter of Cosmetics to the USA [CJ Olive Young – Key Beneficiary]

By Douglas Kim

Korea surpassed France as the top exporter of cosmetics to the USA in 2024. Korea exported $1.7 billion worth of cosmetics to the USA in 2024, up 54.2% YoY.
CJ Olive Young’s online cosmetic sales to overseas markets soared 70% YoY in 1H 2025, fueled largely by the explosive demand from the United States.
We have raised our NAV valuation of CJ Corp to 207,713 won per share (up 28%). We raised the valuation of CJ Olive Young to 7 trillion won.

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Jul 21

Daily Brief South Korea: SK Hynix, Kakaopay and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

SK Hynix Single-Stock ETF Scheduled for 3Q: Watch for a Repeat of the Samsung ETF Playbook
Kakao Pay’s Unique Quick-Flip EB: Watch Hedges & Rolls for Trading Angle

SK Hynix Single-Stock ETF Scheduled for 3Q: Watch for a Repeat of the Samsung ETF Playbook

By Sanghyun Park

When the SK Hynix ETF drops, expect meaningful physical buying shaking up supply-demand. Arb desks and alpha shops could pile in early, pushing the stock higher on flow.
Going long Hynix near listing could pay off if demand mirrors Samsung’s—ETF flows, NAV arb, and delta hedging drove a 4% jump with a noticeable increase in program buying.
Get in around the listing, watch flows, and take profits quickly. This is a short 2–3 day tactical play, with sharper front-running expected based on the Samsung ETF template.

Kakao Pay’s Unique Quick-Flip EB: Watch Hedges & Rolls for Trading Angle

By Sanghyun Park

This Kakao Pay EB deal is basically a quick block trade with immediate share exchange and a 90–102% strike price, letting them sell shares quietly with a built-in discount.
Korea’s seen many EBs, but Kakao Pay’s quick-flip, discount deal is really unique. Watch hedging and roll activity—timing these can capture the sell-off and unwind bounce.
Goldman’s sell-down triggers initial short covering and price bumps; new buyers then short, causing a second wave. Near exchange, more covering leads to choppy, drawn-out price swings.

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Jul 20

Daily Brief South Korea: LG Chem Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (18 July to 1 August 2025)

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (18 July to 1 August 2025)

By Douglas Kim

In this insight, we provide the top 10 stock picks and key catalysts in the Korean stock market for the two weeks (18 July to 1 August 2025).
Our top 10 picks were up on average 4.5% in the past two weeks, slightly outperforming KOSPI which was up 4.4% in the same period.
The top 10 picks in this bi-weekly include Hanil Cement, LG CNS, KCC Corp, Poongsan, Paradise, Samsung Electronics, Naver, SM Entertainment, LG Chem, and SK Inc.

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Jul 19

Daily Brief South Korea: Douzone Bizon, Hanil Cement Co Ltd/New and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Douzone Bizon: First Real Test for Korea’s De Facto Mandatory Tender?
Clearing a Common Misconception — No Pre-Cover Needed in Hanil Stock-For-Stock Swap

Douzone Bizon: First Real Test for Korea’s De Facto Mandatory Tender?

By Sanghyun Park

Founder Kim reportedly looking to offload his 21.5% stake, with EQT eyeing a ~30% control block including Shinhan’s. No succession plans, deal said to be under serious review.
Kim’s control premium ask could trigger Korea’s first test case of expanded fiduciary duty, with minority holders potentially suing if tender terms aren’t seen as fair under new rules.
Buyer likely prepping a Q3 tender offer; key watch is how minority premium stacks vs control block — could be Korea’s first de facto test case of mandatory tender mechanics.

Clearing a Common Misconception — No Pre-Cover Needed in Hanil Stock-For-Stock Swap

By Sanghyun Park

Some still think we must close the borrow pre-settlement in a stock-for-stock merger. But KSD handles it fine — no need to pre-cover if shares stay lendable post-swap.
Spread flipped negative — rare setup in Korea. Tight float on both sides (insider-heavy) is killing liquidity and borrow, leading to this reverse arb play.
Deal break risk is minimal, new share listing is relatively soon, and the negative spread may widen—making this a compelling setup for a reverse arb play.

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Jul 18

Daily Brief South Korea: Samsung Life Insurance, Hanil Cement Co Ltd/New, Silicon2 and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Samsung Jay Lee Cleared by Supreme Court — Market Reaction Could Flip From Consensus
A Merger Between Hanil Cement and Hanil Hyundai Cement to Become the #1 Cement Player in Korea
Insiders Selling at Silicon2: Negative Impact on Share Price

Samsung Jay Lee Cleared by Supreme Court — Market Reaction Could Flip From Consensus

By Sanghyun Park

Jay Lee’s clean Supreme Court win may cool Samsung’s governance trade near term. With legal risks gone, there’s less urgency to push structural changes or shuffle shares now.
Samsung C&T, a hotspot for governance spec flows, may see bids fade as urgency for structural shifts drops; longs on revamp bets might consider fading or shorting amid lingering risks.
Samsung Life gets relief as forced Elec share sales drop, supporting its stock. Samsung Elec stays neutral. Trade idea: Samsung Life long, Samsung C&T short on cooled governance hopes.

A Merger Between Hanil Cement and Hanil Hyundai Cement to Become the #1 Cement Player in Korea

By Douglas Kim

After the market close today (17 July), Hanil Cement Co Ltd/New (300720 KS) and Hanil Hyundai Cement (006390 KS) announced that they will merge.
Through this merger, Hanil Cement (on a combined basis with pro-forma sales of 1.74 trillion won in 2024) will become the largest cement company in Korea after Ssangyong Cement Industrial.
We expect this merger to have a positive impact on both companies and they are likely to outperform the market and other local cement producers this year.

Insiders Selling at Silicon2: Negative Impact on Share Price

By Douglas Kim

Insiders have been selling at Silicon2 (257720 KS). The company’s CEO Kim Seong-Woon and other related parties sold 0.37 million shares (0.6% stake) in June 2025.
Overall, we are concerned about this recent insider selling at Silicon2. We are lowering our rating on Silicon2 to Negative over the next 6-12 months.
Silicon2 needs to introduce new cosmetic brands such as Joseon Beauty, Round Lab, and Anua that could become very popular on a regular basis. However, that could be a challenge.

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South Korea Archives | Page 14 of 126 | Smartkarma

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