South Korea Archives | Page 20 of 126

May 25

Daily Brief South Korea: LX International and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

June Rebalance Intel: Announcement Date & Key Names for KOSPI 200 & KOSDAQ 150

June Rebalance Intel: Announcement Date & Key Names for KOSPI 200 & KOSDAQ 150

By Sanghyun Park

Looks like the KOSPI200/KOSDAQ150 June rebal is a lock for post-close Tuesday (27th)—KRX has already signaled this to local media over the weekend.
Muted pre-positioning this time, likely from weak volumes and no market lead—sets up for punchier price action right after today’s rebalance drop.
Over ~3 weeks, KRW 40T/3.5T passive AUM tracked KOSPI200/KOSDAQ150. With shorts fully back, deletes may trade heavy—sets up well for more aggressive long-short positioning.

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May 24

Daily Brief South Korea: Dowooinsys, Samsung C&T, Woori Financial Group and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Dowoo Insys IPO Preview
Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (23 May to 6 June 2025)
Samsung Fire & Marine Ins (000815 KS) Vs. Woori Financial (316140 KS): A Pair Trade Investigation

Dowoo Insys IPO Preview

By Douglas Kim

Dowoo Insys is getting ready to complete its IPO in Korea. Dowoo Insys is one of the first companies in Korea to commercialize ultra thin glass (UTG) for foldable displays.
The IPO price range is 29,000 won to 32,000 won. At the high end of the IPO price range, the expected market cap of the company is 351 billion won.
The bankers used five companies including Synopex, Duksan Neolux, and Innox Advanced Materials as comparable companies. The bankers used these companies’ average EV/EBITDA multiple of 15x to value Dowoo Insys.

Top 10 Korean Stock Picks and Key Catalysts Bi-Weekly (23 May to 6 June 2025)

By Douglas Kim

In this insight, we provide the top 10 stocks picks and key catalysts in the Korean stock market for the two weeks (23 May to 6 June 2025).
Our top 10 picks were up on average 2.4% in the past two weeks (from 9 to 23 May), outperforming KOSPI which was up 0.6% in the same period.
The top 10 picks in this bi-weekly include Samsung Securities, LG Uplus, Amorepacific Holdings, Samsung C&T, JYP Entertainment, Nongshim, Krafton, LS Electric, F&F, and Emart.

Samsung Fire & Marine Ins (000815 KS) Vs. Woori Financial (316140 KS): A Pair Trade Investigation

By Gaudenz Schneider

The Samsung Fire & Marine Insurance (000815 KS) vs. Woori Financial Group (316140 KS) Price-Ratio has deviated two standard deviations from its one-year average, highlighting a potential tactical opportunity.
Statistical and fundamental arguments are provided for and against a relative value trade in this pair that derives from two different industries.
Trade setup, statistical properties, factor exposure, risk management strategies, and key events are discussed.

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May 23

Daily Brief South Korea: HD Hyundai Marine Solution , Samsung Biologics and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

HD Hyundai Marine Solution Block Deal Sale of 8.5% of Outstanding Shares
HD Hyundai Marine Placement – Very Well Flagged, Overhang Easing but Last Deal Didn’t Do Well
Clearing Confusion on Samsung C&T’s Forced Holding Co Conversion: Key Trade Angle in Biologics Split
Samsung Biologics: Creation of a Holding Company to Split CDMO and Biosimilar Businesses

HD Hyundai Marine Solution Block Deal Sale of 8.5% of Outstanding Shares

By Douglas Kim

After the market close today, it was announced that KKR is selling 3.81 million shares (8.5% of outstanding shares) of HD Hyundai Marine Solution in a block deal sale.
The expected block deal sale price is 145,000 won to 148,000 won per share, which represent 7.96% to 9.83% discount to the closing price of 160,800 won on 22 May.
Once this block deal is completed, KKR’s remaining stake in HD Hyundai Marine Solution will be reduced to 11% (4.94 million shares).

HD Hyundai Marine Placement – Very Well Flagged, Overhang Easing but Last Deal Didn’t Do Well

By Sumeet Singh

KKR is looking to raise around US$410m via selling some of its stake in HD Hyundai Marine Solution (443060 KS).
KKR had come out of its IPO linked lockup in Nov 2024 and had tried to launch a deal in Dec 2024 and finally undertook a deal in Feb 2025.
In this note, we will talk about the placement and run the deal through our ECM framework

Clearing Confusion on Samsung C&T’s Forced Holding Co Conversion: Key Trade Angle in Biologics Split

By Sanghyun Park

Samsung C&T’s holding ratio mainly hinges on its Samsung Biologics stake; Samsung Electronics’ 5% isn’t counted, and Samsung SDS is excluded since Samsung Electronics is its largest shareholder.
This ties to calls for Samsung’s governance overhaul, aiming for C&T to avoid forced conversion while boosting control over Samsung Electronics via bold, more aggressive moves than expected.
Samsung C&T will likely sell some Biologics shares around its in-kind contribution to Epis, timing sales based on post-listing price action.

Samsung Biologics: Creation of a Holding Company to Split CDMO and Biosimilar Businesses

By Douglas Kim

On 22 May, Samsung Biologics (207940 KS) announced that that it plans to establish a new holding company called Samsung Bioepis Holdings through a spin-off.
Samsung Bioepis Holdings will fully incorporate Samsung Bioepis as a wholly owned subsidiary. Samsung Bioepis will focus on the biosimilars business. Samsung Biologics will focus on the CDMO business.
There is likely to be mixed reactions to Samsung Biologics’ announcement to create a holding company structure to split the CDMO and biosimilar businesses.

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May 22

Daily Brief South Korea: Samsung C&T, Hanwha Aerospace, Doosan Enerbility, Hugel Inc and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Intel Summary on Samsung Biologics Split and Samsung C&T’s Acquisition of Samsung Electronics Shares
Samsung C&T: Entrance into the Global Aerospace Industry [Watch What They Do, Not What They Say]
Hanwha Aerospace: Higher Rights Offering Price and Amount
Key Microstructure Angles to Watch as NXT Volume Caps Kick In
Hugel Inc (145020 KS): Record High 1Q Earnings; US Commercialization and UAE Debut to Trigger Growth

Intel Summary on Samsung Biologics Split and Samsung C&T’s Acquisition of Samsung Electronics Shares

By Sanghyun Park

Samsung Biologics is spinning off Samsung Bio Holdings, transferring full Samsung Bioepis shares; shareholders keep stakes in both, with an expected 70:30 split favoring Biologics.
Post-Split, major shareholders keep stakes; they’ll transfer Biologics shares to Bio Holdings, which becomes parent owning 74.34% Biologics and 100% Bioepis, meeting holding company rules.
Samsung C&T’s restructuring carves out Biologics into a holdco, lowering valuation to avoid forced holding company conversion and enabling future Samsung Electronics share acquisition.

Samsung C&T: Entrance into the Global Aerospace Industry [Watch What They Do, Not What They Say]

By Douglas Kim

On 20 May, Samsung C&T (028260 KS) made an important announcement that it started research and development on a space project that includes a rocket launch facility construction.
This is a signal that the Samsung Group may be interested in expanding in the global defense/aerospace industry once again.
The recent news flow on Samsung’s expansion into aerospace business including Samsung C&T’s development of rocket launch facility is likely to positively impact Samsung C&T’s share price.

Hanwha Aerospace: Higher Rights Offering Price and Amount

By Douglas Kim

On 21 May, Hanwha Aerospace (012450 KS) announced that the rights offering price increased to 684,000 won (up 26.9% from 539,000 won previously) due to recent increase in price.
Due to the higher rights offering price, the scale of the capital raise has increased from 2.3 trillion won previously to 2.9 trillion won (US$2.1 billion).
Issue price is determined by applying a 15% discount rate to the one-month weighted arithmetic average price, one-week weighted arithmetic average price, and the closing price on the base date.

Key Microstructure Angles to Watch as NXT Volume Caps Kick In

By Sanghyun Park

With the September review looming, base case is NXT holds steady for now, then starts cutting volume around mid-July — a move that could trigger dislocations in NXT-heavy names.
In theory, SOR shifts retail flow from NXT to KRX seamlessly—but if retail floods in fast, KRX’s institution-heavy book might struggle, causing depth issues or delayed fills.
The attached Excel shows NXT volume share by ticker — a useful read on names heavily reliant on NXT ahead of July caps, where pressure points may start to emerge.

Hugel Inc (145020 KS): Record High 1Q Earnings; US Commercialization and UAE Debut to Trigger Growth

By Tina Banerjee

Hugel Inc (145020 KS) reported strong 1Q25 result, with all key parameters recording double-digit growth. The robust growth was driven by balanced gains across all product portfolios.
In March, Hugel has fully commercialized Letybo in the U.S. through the partnership with Benev. The company aims to capture 10% market share in the U.S. within three years.
Earlier this month, Hugel has officially launched Botulax in UAE. This marked the second official launch in the Middle East, following the product’s debut in Kuwait.

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May 21

Daily Brief South Korea: Sung Kwang Bend, Korea Stock Exchange KOSPI 200, Samsung Electronics Pref Shares, Samsung Electronics, Makus Inc and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

KOSDAQ150 Index Rebalance Preview: Announcement Around the Corner
Surge in ETF Trading Share on KOSPI: Spot Dislocation Opportunities from Leverage Trades
Samsung Electronics’ Phase 2 Buyback Disposal Plan Virtually Finalized: Two Key Trading Implications
Samsung Electronics (005930 KS) Tactical Outlook Amid Rumored Phase 2 Buyback Confirmation
Korea Small Cap Gem #34: Makus

KOSDAQ150 Index Rebalance Preview: Announcement Around the Corner

By Brian Freitas

With the review period for the June rebalance complete, we highlight 11 potential changes for the KOSDAQ 150 Index (KOSDQ150 INDEX).
The estimated impact on the potential inclusions ranges from 0.2-7.5 days of ADV while the impact on the potential deletions varies from 0.2-5.8 days of ADV.
The forecast adds have outperformed the forecast deletes over the last 6-7 months with a big move higher in the last month. Trim positions into strength.

Surge in ETF Trading Share on KOSPI: Spot Dislocation Opportunities from Leverage Trades

By Sanghyun Park

ETF trading topped 50% of KOSPI turnover in April—a first outside the March 2020 COVID crash—rising nearly 14 percentage points month-to-month despite a sharp overall volume drop.
Despite a 30% drop in KOSPI volume, leveraged and inverse ETFs surged 28% and 34%, led by ‘KODEX Leverage’ and ‘KODEX 200 Futures Inverse 2X’ hitting top ADV ranks.
Some local traders see opportunities in spot market dislocations amid volatility, futures rollovers, and ETF-driven supply-demand imbalances likely to persist from last month’s surge.

Samsung Electronics’ Phase 2 Buyback Disposal Plan Virtually Finalized: Two Key Trading Implications

By Sanghyun Park

If ₩500B comes from common shares, about 40M shares retire, raising Samsung Life and Fire stakes to 10.07%, requiring a ₩0.23T block sale to trim excess.
Slightly smaller than last time but still notable, the insurers acted fast in February. Expect a ~0.07% block trade soon, though price impact was mild previously.
Watch for preferred share outperformance as phase two buyback hits 0.66% common vs. 0.81% preferred (effective buyback assuming cancellation); similar dynamics may repeat in the larger ₩4T phase three buyback.

Samsung Electronics (005930 KS) Tactical Outlook Amid Rumored Phase 2 Buyback Confirmation

By Nico Rosti

As reported by Sanghyun Park, Samsung Electronics (005930 KS) ‘s phase 2 buyback disposal plan appears to be virtually finalized (or will be finalized soon – not official yet).
As always, we’ll assess what our tactical models suggest about the trend from here—interpreted alongside the latest catalysts.
We have been monitoring Samsung Electronics (005930 KS) for a while: the stock has been bottoming, then flat for a while, rallied modestly, now a minor pullback… time to BUY?

Korea Small Cap Gem #34: Makus

By Douglas Kim

Makus is #34 in our Korea Small Cap Gem series. Its treasury shares as percentage of outstanding shares is 44%. Net cash as a percent of market cap is 78%.
With greater interest in companies that have a combination of high levels of treasury shares as a percentage of market cap, cheap valuations, and excellent fundamentals, Makus fits the bill.
Makus could be one of the targets for potential tender offers/M&As and likely to outperform the market in the next 1-2 years.

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May 20

Daily Brief South Korea: Telcoware and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Telcoware: Tender Offer To Take the Company Private

Telcoware: Tender Offer To Take the Company Private

By Douglas Kim

Telcoware announced that the largest shareholder and CEO of the company (Keum Han-Tae) will be undertaking a tender offer of 2.332 million shares (25.24%) to take the company private.
Tender offer price is 13,000 won per share. Tender offer period is from 19 May to 10 June.
Telcoware has 4.08 million treasury shares, accounting for 44.1% of outstanding shares.

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May 18

Daily Brief South Korea: Samsung Electronics, Hyundai Motor India , Classys and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

CSOP Sammy ETF + Korean Retail Leverage Frenzy = Contango Basis Arb Alert
Hyundai Motor India – Navigating Domestic Industry Stress
Classys: Block Deal Sale of 6% By Bain Capital Raises Overhang Concerns

CSOP Sammy ETF + Korean Retail Leverage Frenzy = Contango Basis Arb Alert

By Sanghyun Park

CSOP told Korean media this Sammy ETF product targets Korea’s local retail traders wanting leveraged or short KOSPI exposure, especially Sammy, without using Korea’s derivatives market—essentially a cross-border retail play.
Korean retail’s insanely strong demand for anything leveraged, combined with limited domestic derivatives access, makes significant local inflows very likely—far from a moonshot.
TRS use doesn’t guarantee 1:1 futures buying—depends on broker hedging. But, with Samsung futures volume surging, heavy retail flows in CSOP ETF could cause contango and a basis arb opportunity.

Hyundai Motor India – Navigating Domestic Industry Stress

By Sreemant Dudhoria

Domestic Demand Sluggish:Hyundai Motor India (HYUNDAI IN)’s Q4 FY25 profit declined 3.7% YoY as weak domestic sales persisted, partly offset by 14% YoY export growth and price hikes.
SUV Focus Drives Mix Shift: SUVs formed 69% of domestic volumes in Q4, benefiting from rising first-time buyer interest and driving improved average selling prices.
Valuation Fair; Profitability to Soften: Stock trades at ~27x EPS. Near-term margins may be pressured by depreciation from the underutilized new Pune plant ramping up in FY26.

Classys: Block Deal Sale of 6% By Bain Capital Raises Overhang Concerns

By Douglas Kim

After the market close on 16 May, Bain Capital sold about 6% stake in Classys (214150 KS) in a block deal sale.
Bain Capital sold 3.93 million shares of Classys at 57,915 won per share (this price is 10.9% discount from Classys’ closing price the previous day).
Bain Capital’s decision to sell a 6% stake in Classys via a discounted block deal, rather than offloading its entire 60.2% controlling stake, indicates a share overhang on future sales.

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May 17

Daily Brief South Korea: LG Energy Solution and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

LG Chem: To Issue Exchangeable Bond Worth US$1 Billion

LG Chem: To Issue Exchangeable Bond Worth US$1 Billion

By Douglas Kim

On 15 May, LG Chem announced that it plans to issue foreign currency exchangeable bond worth US$1 billion using shares of its subsidiary LG Energy Solution as the underlying asset.
The purpose of this EB issue is to repay the amount of EB issued two years ago.
The exchange price premium was lowered from 130% in 2023 to 110-115% this time, and the maturity has been shortened from 7 years to 3 years.

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May 16

Daily Brief South Korea: SK Square , Hanjin KAL Corp, Mirae Asset Securities and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

A Practical Guide to Stub Arb Trade in the Korean Stock Market
Hanjin Group Chairman Cho Fights Back Against Hoban Group for Control of Hanjin Kal
A Pair Trade (Basket) Of Korean Banks Vs Securities

A Practical Guide to Stub Arb Trade in the Korean Stock Market

By Sanghyun Park

Due to NAV accuracy issues, locals favor sigma plays within ±2σ bands over classic stub trades, with aggressive traders rotating longs and shorts around ±1σ.
Avoid trending divergence periods; these eight targets usually mean-revert well, but H1 this year showed unusually deep divergence—important to consider for current sigma plays.
As of today, no 20-day MA sigmas trigger trades, but holding company strength drives price ratios—a trend likely lasting post-election—suggesting ±2σ sigma plays with longs in holdcos.

Hanjin Group Chairman Cho Fights Back Against Hoban Group for Control of Hanjin Kal

By Douglas Kim

On 15 May, Hanjin KAL Corp (180640 KS) announced that it will contribute 440,044 shares of its treasury stock to the company’s welfare fund, representing 0.7% of its common shares.
This is a clear indication of Hanjin Kal Chairman Cho Won-Tae and his allies launching a management rights defense against Hoban Group which recently increased its stake in Hanjin Kal.
The higher probability scenario is for Hanjin Kal’s shares to retrace down to below 100,000 won level as a full blown M&A fight is not likely in the near future.

A Pair Trade (Basket) Of Korean Banks Vs Securities

By Douglas Kim

In this insight, we propose a pair trade between a basket of major securities stocks (long) versus banking stocks (short) in Korea.
We believe the five major securities stocks in Korea could continue to outperform the five major banking stocks in Korea over the next 6-12 months.
We present 3 major headwinds on the Korean banking sector and 4 major tailwinds on the Korean securities sector.

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May 15

Daily Brief South Korea: Kolmar Korea Holdings , Mini Kospi 200 Futures, Hana Financial, SK Biopharmaceuticals and more

By Smartkarma Daily Briefs | Daily Briefs, South Korea

In today’s briefing:

Sibling Conflict Between Yoon Sang-Hyun (Brother) And Yoon Yeo-Won (Sister) At Kolmar Group
KRX’s In-House Derivatives Night Session: Schedule, Operational Details & Trading Considerations
Korean Banks; Stick with Hana (086790 KS) And Woori (316140 KS)
SK Biopharmaceuticals (326030 KS): Starts 2025 on Slower Note; Xcopri US Sales Growth Moderates

Sibling Conflict Between Yoon Sang-Hyun (Brother) And Yoon Yeo-Won (Sister) At Kolmar Group

By Douglas Kim

There is a brewing sibling conflict at the Kolmar Group. Kolmar Holdings and Kolmar BNH have clashed regarding the reorganization of Kolmar BNH’s board of directors.
Yoon Sang-Hyun (brother) wants to shake things up. Yoon Sang-Hyun wants to appoint new members at Kolmar BNH’s BOD but his sister Yoon Yeo-Won is opposing this.
We see a higher upside for Kolmar Holdings. Our base case valuation of Kolmar Holdings is NAV per share of 14,675 won (57.5% upside from current levels).

KRX’s In-House Derivatives Night Session: Schedule, Operational Details & Trading Considerations

By Sanghyun Park

KRX’s night-time derivatives market goes live Monday, June 9. With Eurex ties ending June 5, this shift to in-house trading could bring flow and liquidity changes worth planning for.
KRX is doubling its night session lineup from 5 to 10 products, adding KOSDAQ 150 futures/options, Mini KOSPI 200 options, and 3- and 10-year KTB futures.
KRX is tightening overall price limits for night sessions but doubling real-time order bands—aiming to curb big swings while keeping trades flowing smoothly despite thinner liquidity.

Korean Banks; Stick with Hana (086790 KS) And Woori (316140 KS)

By Victor Galliano

Our weighted metrics of share valuations, returns, capital adequacy and credit quality feed into a scorecard matrix; we look for opportunities where the risks are well discounted in current valuations
Woori Financial Group (316140 KS) remains the stand-out in terms of our matrix; this is based on valuation, dividend yield, and its superior credit quality relative to its peers
Hana Financial is second from top in our scorecard due to its attractive PBV ratio versus RoE, healthy dividend yield and sound credit quality; management should deliver improved medium-term returns

SK Biopharmaceuticals (326030 KS): Starts 2025 on Slower Note; Xcopri US Sales Growth Moderates

By Tina Banerjee

SK Biopharmaceuticals (326030 KS) announced muted 1Q25 result, with all key parameters, including revenue, operating profit, and net profit declining sequentially, as the Xcopri sales in the U.S. moderates.
Xcopri U.S. sales increased 3% QoQ, which is the lowest over the last one year, due to seasonal inventory drawdown, restructuring of major pharmacy chain, and high base effect.
SKBP considers Xcopri U.S. revenue moderation as ‘temporary’ and sees recovery in 2Q. However, high revenue exposure to the U.S. seems to be a serious headwind in current uncertain scenario.

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South Korea Archives | Page 20 of 126 | Smartkarma

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