South Korea Archives | Page 17 of 126 | Smartkarma

The ruling party’s KOSPI 5,000 task force is now eyeing low PBR names with talk of direct penalties — a sharper shift from the prior admin’s soft-touch value-up approach.
Low PBR penalties may bypass the Assembly, fast-tracked via KRX or enforcement rule tweaks — rollout could follow swiftly post commercial code passage, possibly within 2–3 months.
Market’s zeroing in on low PBR, high ROE large caps — with 0.8x flagged as the penalty line, 56 KRW 1T+ names screen as potential re-rating plays.

Shinhan Financial Group Placement – Clean-Up Trade but Stock Is at All Time-Highs

By Sumeet Singh

Affinity Equity Partners is looking to raise around US$425m via selling 1.9% of its stake in Shinhan Financial (055550 KS).
Affinity had sold half of its stake earlier in 2024, when the company witnessed a number of selldowns in 1H24.
In this note, we will talk about the deal dynamics and run the deal through our ECM framework.

Kospi200: Where Implied Vol Stands After 33% Surge

By John Ley

Kospi200 posted a strong weekly gain, advancing every day and extending a powerful rally off the April lows.
The percentage of positive trading days since early April reflects strong momentum.
A divergence is emerging, with implied volatility no longer reacting to spot moves as before.

DH Shipbuilding IPO Preview

DH Shipbuilding is getting ready to complete its IPO in KOSPI in August. DH Shipbuilding would be the second largest IPO in Korea after LG CNS so far this year.
The IPO price range is 42,000 won to 50,000 won per share. At the high end of the IPO price range, it could raise as much as 500 billion won.
The bankers used four companies including HD Hyundai Heavy Industries, Hanwha Ocean, Samsung Heavy Industries, and HD Hyundai Mipo as comps for DH Shipbuilding.

Samyang Comtech IPO Valuation Analysis

Our comparable companies valuation analysis suggests implied market cap of 557 billion won or target price of 13,187 won per share.
This represents a 71% upside from the high end of the IPO price range (7,700 won per share). Given the excellent upside, we have a Positive view of this IPO.
One could argue that valuation discount on Samyang Comtech may be too conservative mainly due to higher sales growth, ROE, and operating margins of Samyang Comtech relative to the comps.

HBM Should Be as Attractive an Investment as Nvidia or TSMC but the Stocks Don’t Show That

By Nicolas Baratte

Nvidia, AMD launch a new GPU every 2 years. At each generation, higher performance manufacturing (TSMC) and HBM (higher density, higher speed, thinner layers). Hence, cost increase at each generation.
Price and volumes are negotiated 1 year ahead. TSMC, SK Hynix expect AI / HBM revenues to double in 2025. Expect another 50-60% in 2026.
Why HBM attracts less interest than Foundry (TSMC) or Design (AMD, AVGO, Nvidia)? Mostly, investor still think this is a cyclical business – HBM isn’t.

Kospi200: Elevated Returns, Historical Extremes and Optionality Opportunity

By John Ley

We assess whether recent returns have been extreme and put yesterday’s sharp rally in context.
The evolution of volatility following past extreme states is examined.
Rationale for using optionality in this stretched price environment is outlined.

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Jun 24

Daily Brief South Korea: LG CNS, Doosan Enerbility, Hanmi Semiconductor, SK Hynix, SK Bioscience and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Why Is LG CNS One of the Hottest Stocks in Korea in the Past One Month? Answer: Stablecoin Platform
Doosan Enerbility (034020.KQ) – Nuclear-Led Transition with Strong Visibility, But Valuation Full
Latest Borrow (Net Short Interest) To Float Ratios — Screening a Starter Basket for Short Flow
Lucror Analytics – Morning Views Asia
SK Bioscience (302440 KS): Dual Engines Led Growth Strategy Is on Track; Solid 1Q25 Performance

Why Is LG CNS One of the Hottest Stocks in Korea in the Past One Month? Answer: Stablecoin Platform

LG CNS has been one of the hottest stocks in the Korean stocks market in the past one month (up 87%), sharply outperforming KOSPI.
The biggest driver of LG CNS’s share price in the past month has been that this company has the potential to become a leading stablecoin platform in Korea.
Many investors believe that LG CNS has the expertise in blockchain/AI/cryptocurrency backend solutions to become one of the leading Won based stablecoin platforms in Korea.

Doosan Enerbility (034020.KQ) – Nuclear-Led Transition with Strong Visibility, But Valuation Full

Margins have improved steadily since FY2020, but bottom-line gains remain volatile due to non-operating drags.
Backlog at Record Highs; Nuclear a Key Differentiator: ₩20.1 tn order book, rising SMR traction, and global nuclear wins position Doosan as a strategic supplier.
Structural Tailwinds Priced In: While medium-term growth looks strong, premium multiples (~28x EV/EBITDA) suggest limited room for execution missteps.

Latest Borrow (Net Short Interest) To Float Ratios — Screening a Starter Basket for Short Flow

Dropped an Excel below with all names showing borrow as of today’s close — includes short interest and borrow-to-float using latest float data.
Tables below flag names with borrow-to-float >4% (>3% for small caps) and plenty of unused borrow — solid candidates for potential short flow.
Not auto-shorts — still need basic checks. But with borrow rising, this set looks like a solid starter basket to watch for short flow.

Lucror Analytics – Morning Views Asia

By Trung Nguyen

In today’s Morning Views publication we comment on developments of the following high yield issuers: SK Hynix
Front-end UST yields declined on Friday, on the back of Fed Governor Christopher Waller’s comments that a rate cut could come as early as July. The UST curve bull steepened, with the yield on the 2Y UST falling 3 bps to 3.91%, while that on the 10Y UST declined 1 bp to 4.38%.
Equities retreated amid escalating tensions in the Middle East. In addition, semiconductor stocks fell after WSJ reported that the US could revoke export waivers for Western chipmakers to manufacture in China.

SK Bioscience (302440 KS): Dual Engines Led Growth Strategy Is on Track; Solid 1Q25 Performance

By Tina Banerjee

SK Bioscience (302440 KS) has initiated global Phase 3 clinical trial of GBP410, a 21-valent pneumococcal conjugate vaccine (PCV21) candidate, with topline result expected in 2027.
IDT Biologika recorded revenue of KRW118B in 1Q25, up from KRW111B in 4Q24. Considering 1Q25 momentum, IDT seems to be on track to meet 2025 guidance of KRW410B.
1Q25 base business revenue increased 62% YoY to KRW36B. Operating loss of the base business narrowed to KRW26B from a loss of KRW28B in year-ago quarter.

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Jun 23

Daily Brief South Korea: SK Inc and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Korea Holdco Rerating Pullback Risk: No Retroactive Treasury Cancellation

Korea Holdco Rerating Pullback Risk: No Retroactive Treasury Cancellation

Mandatory treasury cancellation isn’t in the current bill, but FSC and MOJ have started internal reviews; enforcement decree could drop as early as Q4.
An internal policy paper suggests mandatory cancellation will apply only to newly acquired treasury shares, with tight limits on existing ones to curb owner control abuse.
Lack of retroactive cancellation weakens the bull case, and while holdco sentiment stays upbeat, momentum may fade, opening the door to a tactical pullback.

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Jun 21

Daily Brief South Korea: Samsung Electronics, D’Alba Global, Korea Stock Exchange Kospi Index and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Fresh Intel on Samsung’s Foundry Spin-Off Plan
D’Alba Global: Financial Investors Could Unload 19% of Shares Once Lockup Ends on 22 June
Korea FSC Plans KRX to Match NXT Trading Hours and Move to T+1 Settlement
Samsung Electronics (005930 KS) Outlook as Foundry Spin-Off Gains Momentum

Fresh Intel on Samsung’s Foundry Spin-Off Plan

Insiders say Google’s fast-growing phone biz now overlaps Samsung’s, sparking serious rivalry fears. This “Google shock” has become a major topic among Samsung’s top execs lately.
Sammy’s crisis plan involves carving out System LSI from foundry, with a likely spin-off of the foundry biz as a separate entity—insiders say that’s the favored move now.
Samsung’s restructuring sparks a tug-of-war between shareholder value erosion and foundry re-rating. A spin-off looks likely, with recent stock moves showing investor optimism.

D’Alba Global: Financial Investors Could Unload 19% of Shares Once Lockup Ends on 22 June

D’Alba Global has been one of the best performing IPOs in Korea this year. Its share price has risen to 172,5000 won, an increase of 160% from it IPO price.
A total of 19% of outstanding shares of D’Alba Global could start to be sold starting 22 June. That is a lot of shares!
These are likely to put negative pressure on the shares of D’Alba Global. Therefore, we change our view on this company to Negative over the next 6-12 months.

Korea FSC Plans KRX to Match NXT Trading Hours and Move to T+1 Settlement

If KRX adopts NXT’s pre- and after-hours fully, liquidity spreads out, weakening gap open plays and shifting focus to large-cap, event-driven LP-driven flows.
With T+1 settlement coming, traders expect settlement pressure to fuel price dislocations—especially in ETF rebalancing and foreign-heavy stocks, where flow and FX risks may drive fresh discounts and volatility.
Though launched pre-new admin, FSC’s plans align with the government’s push to boost KOSPI liquidity, making cancellations unlikely. Expect fast rollout—time to prep trading setups now.

Samsung Electronics (005930 KS) Outlook as Foundry Spin-Off Gains Momentum

By Nico Rosti

Sanghyun Park has reported in detail about what seems to be going on behind closed doors at Samsung in regard to the foundry spin-off: read his insight – highly recommended.
We maintain our BUY recommendation for Samsung Electronics (005930 KS) and although we have not yet seen a strong rally, we see the stock slowly drifting upward from its bottom.
Our short-term tactical perspective covering the next 2–3 weeks is presented in this insight.

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Jun 20

Daily Brief South Korea: LG CNS, Samyang Comtech and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Aug 5 LG CNS Lockup Comes Off: Street Heating Up on Macquarie Exit Odds Surging
Samyang Comtech IPO Preview

Aug 5 LG CNS Lockup Comes Off: Street Heating Up on Macquarie Exit Odds Surging

Macquarie might fast-track its 21.5% LG CNS stake sale, shifting from patience to action — weighing staggered sell-down vs. OTC block to limit price impact.
Macquarie’s well in the money — even with a deal discount, they can offload the stake, cover remaining debt, and still lock in solid upside.
LG CNS is flying on AI hype, but Macquarie’s post-August 5 exit risk could flip the tape fast — overhang setup worth watching vs. other local AI plays.

Samyang Comtech IPO Preview

Samyang Comtec (a mid-sized defense company) is getting ready to complete its IPO in KOSDAQ in July. It is one of the leaders in the bulletproof and protective materials sector.
The IPO price range is from 6,600 won to 7,700 won per share. The IPO offering amount range is from 95.7 billion won to 111.7 billion won.
The company has experienced a surging growth in exports in the past several years. Exports which accounted for only 6.3% of total sales in 2022, increased to 41% in 2024.

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Jun 19

Daily Brief South Korea: Kolmar Korea Holdings , Kakao Mobility, SK Hynix, Samsung Heavy Industries and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Kolmar Group Chairman Yoon: A Rare Case Of “I Want My Shares Back”
Tencent to Acquire Kakao Mobility?
Asia Strategy: Our Model Portfolio Outperformed. Focus Themes Intact; No Changes for Now
Samsung Heavy (010140) Ends $3.5B Zvezda Deal; Arbitration On, Order Book Unaffected

Kolmar Group Chairman Yoon: A Rare Case Of “I Want My Shares Back”

Chairman Yoon Dong-han, founder of the Kolmar Group, has filed a lawsuit against his eldest son, Vice Chairman Yoon Sang-hyun of Kolmar Holdings, demanding the return of Kolmar Holdings shares.
This is a rare case of a chairman demanding his shares back from his son.
A key question is can there be an M&A fight for Kolmar Holdings even without the father getting his shares back? And the answer would be yes.

Tencent to Acquire Kakao Mobility?

Tencent (700 HK) has emerged as a major contender to acquire about 40% stake in Kakao Mobility which operates Korea’ leading ride hailing app Kakao T.
Tencent’s investment stakes in the nine major Korean companies are worth 6.9 trillion won ($5.0 billion). Most of the investments are in the games and entertainment/K-Pop related sectors.
The VIG consortium has reportedly valued Kakao Mobility at about 6 trillion won ($4.4 billion).

Asia Strategy: Our Model Portfolio Outperformed. Focus Themes Intact; No Changes for Now

By Manishi Raychaudhuri

From 15th may to 17th June our Asia-ex-Japan Model Portfolio returned 3.37% vs MSCI Asia-ex-Japan’s 2.62%. Overweight on Korea and stock selection in HK/China, Taiwan and Philippines helped.
Top 5 performers were Digiplus (+31.9%), SK Hynix (+27.1%), Hana Financials (+23.8%), Netease (+21%), CCB (+9.8%). The worst 5: Alibaba (-11.4%), BYD (-8.5%), Trip.Com (-7.4%), Titan (-7.2%), M&M (-5.1%).
Our themes – tech investment momentum, Chinese consumption revival, cyclical recovery in India and dividend yield across the region – are working fine. We make no changes to our portfolio.

Samsung Heavy (010140) Ends $3.5B Zvezda Deal; Arbitration On, Order Book Unaffected

SHI officially terminated $3.54B worth of Russian contracts on June 18, citing prolonged non-performance by Zvezda.
The company is pursuing arbitration in Singapore, aiming to retain $800M in advances and seek additional damages. Most such cases have favoured shipbuilders.
With no production initiated and a strong $28–30B backlog, the impact on operations and FY25 guidance is expected to be minimal.

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Jun 18

Daily Brief South Korea: Hanjin KAL Corp, PharmaResearch, Kepco Engineering & Construction and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Why Late August Could Be the Pivot Point for the Hanjin KAL Trade?
PharmaResearch Spin-Off: A Textbook Case Study of Destroying Shareholder Value
KEPCO E&C (052690.KQ) – Nuclear Tailwinds, Proprietary Edge, and Execution Challenges

Why Late August Could Be the Pivot Point for the Hanjin KAL Trade?

KDB just signaled they’ll offload their Hanjin KAL stake post-merger, likely in 2027—ending speculation they’d stay long-term to back Cho Won-tae.
The 9% held by Daishin and Eugene PEs may hit the market in August, with LPs likely to cash out—Hoban grabbing it could flip the whole Hanjin KAL setup.
If Hoban grabs the 9% PE stake in August, it could trigger a pre-2027 bidding war—possibly even a tender offer—to lock down float. This is the key near-term pivot.

PharmaResearch Spin-Off: A Textbook Case Study of Destroying Shareholder Value

Last week, PharmaResearch announced that it has approved a corporate spin-off, to separate the existing company into two distinct entities including PharmaResearch Holdings (surviving entity) and PharmaResearch (newly created entity).
PharmaResearch spin-off is a textbook case study of destroying shareholder value. Minority shareholders should oppose this deal.
The spin-off ratio is based on a pure net asset basis, not taking into consideration the future earnings and cash flow streams of the company’s most important product line Rejuran.

KEPCO E&C (052690.KQ) – Nuclear Tailwinds, Proprietary Edge, and Execution Challenges

KEPCO E&C is well-positioned to benefit from the global revival in nuclear power, with strong domestic visibility and growing international interest in its engineering capabilities.
Its proprietary APR1400 reactor platform anchors the business, supported by verticals in O&M, decommissioning, and green energy EPC.
While earnings have grown sharply on margin gains, high valuations and project execution risks—particularly overseas—warrant careful monitoring.

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Jun 17

Daily Brief South Korea: Telcoware, Asia Holdings, Dongwon Industries, Korea Stock Exchange KOSPI 200 and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Telcoware & Shinsung Tongsang Tender Offers: Minority Shareholders Demand Higher Tender Offer Prices
[Quiddity Index Jun25] KOSPI 200 Leaderboard for Dec25 Rebal: 4 In/Out But Too Early to Bet
Three Key Angles when Hunting Div Arb Setups in the Korean Market
KOSPI 200 Tactical Warning: OVERBOUGHT

Telcoware & Shinsung Tongsang Tender Offers: Minority Shareholders Demand Higher Tender Offer Prices

Telcoware (078000 KS) and Shinsung Tongsang (005390 KS) are two recent tender offers in Korea where the minority shareholders are demanding higher tender offer prices.
The actual subscription rate of the Telcoware tender offer was only 10.44%, far below the 25.24% targeted by the CEO Keum Han-Tae.
The Shinsung Tongsang owner family may acquire an additional 7–10% stake via this tender offer, though it remains unclear if they can secure full 95% ownership at this stage.

[Quiddity Index Jun25] KOSPI 200 Leaderboard for Dec25 Rebal: 4 In/Out But Too Early to Bet

By Travis Lundy

KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
In this insight, we take a look at the names leading the race to become ADDs and DELs during the next semiannual review in December 2025.
We expect up to 4 ADDs and 4 DELs in the KOSPI 200 index during the December 2025 index rebal event based on the latest available data.

Three Key Angles when Hunting Div Arb Setups in the Korean Market

Is the SSF base price automatically adjusted on ex-div day? No — Korea doesn’t mechanically adjust cash or futures base prices on ex-div, keeping dividend arb opportunities alive.
Could front-month futures flip into contango near ex-div? It’s rare but possible, especially with KRX’s aggressive SSF reshuffles and KOSDAQ Global additions shaking up liquidity and basis volatility.
Arb plays may arise from Korea’s new 27.5% div tax on payouts over 35%. Ex-div timing and payout uncertainty may create opportunities for dividend arb setups.

KOSPI 200 Tactical Warning: OVERBOUGHT

By Nico Rosti

The KOSPI 200 INDEX has been rising > 30% since its 303-low in early April 2025: a vertical rally after Lee Jae-myung’s won the Presidential Elections in South Korea.
Our most extreme profit target set in our latest insight was 392. The KOSPI 200 reached 394 on June 16th. It is now ultra-overbought.
Our short-term WEEKLY tactical view is the following: the index could go maybe a bit higher or it could pullback soon (more likely). Not bearish, will be a buy opportunity.

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Jun 16

Daily Brief South Korea: Samsung Electronics, Samsung Card Co, SK Hynix, Samsung Heavy Industries and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Near-Term Value-Up Plays in the Pipeline: Samsung Electronics & Kakao
Why Amazon Issuing Stablecoins Could Negatively Impact Samsung Card’s Share Price
SK Hynix, Micron HBM4 Qualification by Nvidia Is Done. Samsung Still Failing to Qualify with Nvidia
Samsung Heavy Industries (010140.KQ) – Offshore Momentum, LNG Tailwinds Justify Premium

Near-Term Value-Up Plays in the Pipeline: Samsung Electronics & Kakao

Local chatter’s building that Samsung Electronics and Kakao might drop value-up disclosures by end-June to mid-July, as both cozy up to the new administration and move into its inner circle.
Jay Lee’s surprise solo meeting with President Lee marked a turning point, signaling Samsung’s intent to step out of SK’s shadow and take the lead under the new regime.
Value-Up details aren’t final, but Samsung’s likely to reaffirm >35% payout, while Kakao’s set to focus on ROE improvement and multiple expansion.

Why Amazon Issuing Stablecoins Could Negatively Impact Samsung Card’s Share Price

WSJ reported that Amazon and other major multinational in the US are actively considering on potentially issuing their own stablecoins. This could negatively impact card issuers such as Samsung Card.
Once stablecoins are legally approved in South Korea and some of the major merchants in Korea start to use stablecoins, the current revenue streams of Samsung Card could get disrupted.
Although the exact levels of revenue disruption still remain uncertain, many investors do not like uncertainty which means that some investors could start to reduce their holdings on Samsung Card.

SK Hynix, Micron HBM4 Qualification by Nvidia Is Done. Samsung Still Failing to Qualify with Nvidia

By Nicolas Baratte

2025 GPU (Blackwell for Nvidia, MI350 for AMD) use HBM3e 12Hi. SK Hynix and Micron supply Nvidia, Samsung has failed qualification again. Micron and Samsung supply AMD.
2026 GPU (Rubin, MI400) use HBM4 12Hi. SK Hynix, Micron are qualified by Nvidia – that’s done. Micron is closing the gap with Hynix. Samsung still nowhere to be seen.
Samsung got its consolation prize: AMD is using its HBM3e 12Hi in MI350. It looks like Broadcom will use Samsung’s HBM3e 8Hi in 2 projects (speculatively Apple and OpenAI).

Samsung Heavy Industries (010140.KQ) – Offshore Momentum, LNG Tailwinds Justify Premium

SHI reported robust Q1 2025 results with revenue of KRW 2.49T (+6% YoY) and operating profit of KRW 123B (+58% YoY), reflecting improved offshore project execution and margin expansion.
Management reiterated FY2025 guidance of KRW 10.5T revenue and KRW 630B operating profit, with offshore accounting for ~40% of new orders and a USD 9.8B full-year target
With LNG carrier replacement demand, FLNG ramp-up, and leadership in eco-vessels, SHI’s earnings trajectory supports its 22x FY27E P/E, despite execution and competition risks.

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Jun 15

Daily Brief South Korea: Hyundai Rotem Company, HLB Inc, FnGuide Inc and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

[Quiddity Index] MV Global Defense Jun25 Rebalance Results: Flow Expectations
HLB Merger Arb’s Unique Timing Dynamics for a Juicy 8% Swap Spread
Korea Small Cap Gem #36: FnGuide [Increasing Moat for Its Index Business]
MV Global Defense Industry Index Rebalance: US$1.1bn Round-Trip Trade as Stocks Soar

[Quiddity Index] MV Global Defense Jun25 Rebalance Results: Flow Expectations

By Travis Lundy

The MV Global Defense Industry Index represents the performance of companies in national defense industries.
There will be 3 ADDs for the MV Global Defense Index in June 2025.
We expect one-way flow of US$505mn for June 2025, which translates to a turnover of 8.8%.

HLB Merger Arb’s Unique Timing Dynamics for a Juicy 8% Swap Spread

Some local desks think the company pushed the timeline back to align with a potential FDA Class 1 approval for Rivoceranib expected by July.
No word yet if it’s Class 1 or 2; Class 2 means November decision. Despite risks, local hedge desks are building arb plays, betting on the July FDA timing dynamics.
No FDA decision by July means Class 2 and a sell-off, hitting HLB Co. hardest. Class 1 approval boosts both stocks, cuts cancellation risk, and sets the 8% spread floor.

Korea Small Cap Gem #36: FnGuide [Increasing Moat for Its Index Business]