South Korea Archives | Page 6 of 126 | Smartkarma

• Palliser Capital started to go activist on LG Chem.  According to Palliser Capital, LG Chem’s share price is trading at a 74% discount to its NAV.
• Palliser Capital proposed improving the composition of the board of directors, restructuring the executive compensation system to align with shareholder interests, and higher share buybacks. 
• Our updated NAV analysis of LG Chem suggests implied price of 613,438 won per share, which represents a 57% higher levels than current levels.

• Market sniffing policy push; low-float names flagged as junk risk with skewed control. Desks circling, Palliser hit early—LG Chem trade popped, timing spot on.
• Trade setup: screen >₩1tn caps with low float, parent stakes 60–80%. Policy push likely forces stake cuts, driving float higher and squeezing NAV discounts—LG Chem shows the play.
• Screening >₩1tn caps flags 11 names: parents hold 60–80%. All potential stake-sale plays to boost float, squeeze NAV discount.

• LivsMed is getting ready to complete its IPO on the KOSDAQ exchange in December 2025. LivsMed is a medical device manufacturer that specialises in minimally invasive surgery products.
• This is expected to be one of the largest IPOs in KOSDAQ in 2025.  The IPO price range is from 44,000 won to 55,000 won per share.
• LivesMed has commercialized the world’s first multi-joint, multi-degree-of-freedom (DOF) technology capable of 90° rotation in all directions.

• Nota’s IPO price has been confirmed at 9,100 won, which is at the high end of the IPO price range. The demand ratio was 1,058 to 1.
• Our base case valuation of Nota suggests target price of 11,948 won per share, which is 31% higher than the IPO price (9,100 won). 
• Nota Provides technology that enables the efficient operation of high-performance AI models even on resource-constrained edge devices, centered around its proprietary AI model optimization platform, NetsPresso®.

• Aniplus is increasingly becoming a leading player in the anime contents production and distribution in Korea. The company’s anime contents have potential to expand globally. 
• Valuations are attractive. It is trading at P/E of 9x in 2025 and 7.9x in 2026 based on consensus earnings estimates. 
• If we use P/E of 15x on 2026E net profit of 26.9 billion won, this would suggest a market cap of 404 billion won (95% higher than current market cap). 

• Doosan Enerbility is strategically pivoting towards eco-friendly energy solutions, including gas turbines, renewables (wind, hydrogen), and small modular reactors (SMRs), positioning itself to capitalize on the global energy transition.
• The company maintains a strong, albeit cyclical, position in the global power and water plant construction market, with core competencies in nuclear reactors, turbines, and desalination technologies.
• Financial performance is characterized by revenue growth but significant volatility in profitability and cash flow, alongside a high valuation (P/E > 100x) that presents a risk for investors.

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• Technology Leader in a Growing Niche Market: Park Systems is the global market leader in the Atomic Force Microscopy (AFM) industry, a critical segment for nanoscale metrology. The company’s growth is propelled by secular tailwinds, including semiconductor miniaturization and increasing R&D in life sciences and materials science.
• Founder-Led with Deep Expertise: The company is led by its founder, Dr. Sang-il Park, a pioneer who was part of the Stanford team that invented the AFM and who commercialized the world’s first AFM. This deep technical expertise forms the foundation of the company’s innovative product development and competitive edge.
• Strong Financial Performance with a Robust Outlook: Park Systems has demonstrated an impressive track record of high-growth, with a 5-year revenue CAGR of 27.5% and a 5-year net income CAGR of 38.2%. The outlook remains positive, supported by strategic acquisitions and expansion into new applications, though valuation appears full, reflecting high expectations.

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• Names with the biggest float bumps relative to their old float saw the sharpest moves — Hanwha Ocean and Ecopro Materials were the standout examples.
• Kakao Pay looks set for Dec review spotlight: float likely jumping from 21% to 34% (+13ppt, 60%+ surge), even bigger than Hanwha Ocean/Ecopro last round.
• Kakao Pay’s 13ppt float hike implies ~0.7–1.0x DTV passive inflows; with little pre‑positioning, flows may hit raw and drive outsized intraday impact.

• SK Group plans to restructure its renewable energy businesses that could result in asset sales of more than 1 trillion won. 
• SK Group is taking on a major restructuring of its renewable energy businesses, including  including fuel cells, energy storage systems (ESS), and solar/wind power generation facilities. 
• A consensus has been forming in the local media regarding Chairman Chey’s expected divorce payment to his wife Roh So-young to be about 400 billion won to 700 billion won.

• SemiFive is getting ready to complete its IPO in KOSDAQ in December 2025. The IPO price range is from 21,000 won to 24,000 won per share.
• Total IPO proceeds are estimated to be between 113.4 billion won to 129.6 billion won. The market cap is expected to range from 708 billion won to 809 billion won.
• SemiFive is one of the global leaders in custom AI semiconductor (ASIC) design. 

• Near‑term flow looks muted: Shinhan likely drips ~0.3% SO stake into liquid tape, not a block. With ₩2tn daily turnover, market easily absorbs without price shock.
• Top‑holder stake dips 20.14→19.84% post‑sale, but ₩10tn buyback cancels ~1.5ppt float, restoring 20.14%. The 0.3% selldown’s pre‑calculated; no real trading juice, flow impact minimal.
• Inheritance‑tax overhang done, buyback cycle fading. Gov’t pressure plus family’s last selldown point to dividend ramp. Prefs at 23% discount vs 10% target set up clean reversion trade.

• Despite having strong operational performances, we think ESR KS REIT is currently facing 2 headwinds, 1 structural issue and 1 cyclical issue
• Korea listed companies are generally suffering from under-valuation and excessive equity raise.  The equity raises, which are done at discount to NAV, is value destructive
• In the physical market, we think the logistics market is facing oversupply issue, slow absorption and protected recovery.

• NPS’s new SMID mandates use a benchmark, an 80/20 mix of the KOSPI Mid+Small Cap (Size Index) and KOSDAQ150, with ~₩500bn total, implying roughly a 20% step-up in mid/small-cap exposure.
• March KOSPI large→mid-cap migration could trigger significant passive flows, unlike last September when policy rallies and APR index noise distorted flow–price impact correlation.
• NPS compressed its SMID trading window near the effective date, hinting at tighter rebalancing; with ~20% mid-cap exposure bump in March, this could create a notable price impact trade.

• It was reported that Hong Ra-hee, Lee Boo-jin, and Lee Seo-hyun will be selling a combined 1.7 trillion won worth of Samsung Electronics to pay for inheritance taxes.
• This stake sale by the Lee family will represent 0.3% of Samsung Electronics outstanding shares. 
• Samsung Electronics still trade at low multiples and its valuations remain attractive. Its recent strategic partnership with OpenAI regarding the Stargate project also remain a major positive catalyst. 

• The long-standing divorce case between SK Group Chairman Chey Tae-won and his estranged wife Roh So-young refuses to end.
• Rather, the Supreme Court of Korea overturned a lower court ruling that ordered Chey Tae-won to pay 1.38 trillion won ($973 million) to Ro So-young.
• Our NAV valuation of SK Inc suggests implied market cap of 25.8 trillion won or target price of 355,918 won per share, which is 63% higher than current levels.

• It was reported that various members of the LS Group family/relatives sold a 6.3% stake in LS Eco Energy Ltd (229640 KS) for about 70 billion won in after-hours trading.
• There is an increasing probability that this could lead to these insiders purchasing more shares of LS Corp to defend their controlling stake of the company from the Hoban Group.
• Hoban Group is likely to have acquired more than 3% stake in LS Corp. If so, it can request to inspect LS Corp’s books and convene a shareholders’ meeting.

• Kim Yong-beom proposed cutting eligibility to 25%+ payout firms and hinted the Presidential Office may slash the dividend tax ceiling to 25%, potentially the boldest move yet.
• Short-Term spotlight: large-cap 25–40% payout stocks, led by Samsung Elec and Hyundai Motor. Kim Yong-beom hinted the Presidential Office wants them included to drive dividend growth.
• Big-Cap 25–40% payout stocks, especially Samsung Elec and Hyundai Motor, could see heavy flows, with their preferred shares poised to outperform in the near term.

• In this insight, we highlight stocks that have been highlighted by locals as potential inclusion/exclusion candidates in KOSPI200 and major global index rebalance in 4Q25.
• The five potential inclusion candidates include Paradise, Asia Holdings, LG CNS, APR, and HD Hyundai Marine Solution. 
• The five potential exclusion candidates include TCC Steel, KG Mobility, Dentium, Orion Corp, and LG H&H. 

• Dominant Market Position: Korea Ratings is one of the top three credit rating agencies in South Korea, an oligopolistic market with extremely high barriers to entry due to stringent licensing requirements and the need for a long-standing reputation.
• Stable Financials with Strong Resilience: The company exhibits a flawless balance sheet, consistent profitability, and robust cash flow generation, underscored by a Smartkarma Resilience score of 5/5. Its business model is inherently tied to the recurring need for corporate debt issuance, providing a stable revenue base.
• Strategic International Partnership: As a subsidiary of Fitch Ratings, Ltd., Korea Ratings benefits from global best practices, sophisticated rating methodologies, and an enhanced international network, strengthening its competitive edge in the domestic market.

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• Chinese government’s efforts to ban Hanwha Ocean’s five U.S. subsidiaries from conducting any transactions with organizations or individuals in China is likely to have material Negative impact on Hanwha Ocean.
• If Hanwha’s U.S. subsidiaries are banned from Chinese suppliers, they’ll need to source alternatives (Japan, Europe, or domestic U.S. firms), that could involve 20–50% higher costs with longer lead times.
• Basically, what’s going on is that the Chinese government wants to slow down the United States’ efforts to rebuild its shipbuilding sector with the help of Korean shipbuilders.

• Back on 6 November 2024, we published an insight called 2025 High Conviction: Samsung Electronics. In this insight, we provide an update of Samsung Electronics.
• Samsung Electronics reported operating profit of 12.1 trillion won (up 31.8% YoY and 18.7% higher than consensus) in 3Q 2025.
• The final installment of the 12 trillion won+ inheritance tax is due in April 2026.

• Supreme Court divorce ruling for Chairman Chey (17.9% owner) hits tomorrow 10 a.m., likely driving intraday swings.
• Chey’s wealth is mainly SK Inc (17.8%) and SK Siltron (29.6%). With half SK Inc shares tied, only SK Siltron offers liquidity, but it still falls short of his needs.
• If the Supreme Court surprises, Chey may act on SK Inc shares, fueling a management/control narrative. Payments are due immediately, so SK Inc could see bigger intraday swings than expected.

• Boryung Pharmaceutical (003850 KS) is acquiring cytotoxic anti-cancer drug Taxotere (docetaxel) from Sanofi (SAN FP) for €175M (~KRW288B), inclusive of potential milestone payments worth €14M.
• Post acquisition, Boryung aims to enhance the therapeutic value of Taxotere to include formulation improvements, combination strategies, and research into new indications. Currently, oncology contributes 20%+ of total revenue.
• Over the last six months, Boryung shares remained almost flat, reflecting lack of any strong catalyst. Acquisition of Taxotere is not going to change the situation overnight.

• On 13 October, Value Partners has come out in support of Samyang Holdings (000070 KS)’s equity spin-off plan but on the condition that the company must cancel its treasury shares.
• Value Partners believes Samyang Holdings is currently severely undervalued, trading at a P/B of 0.34x. A shareholders meeting for Samyang Holdings is scheduled for 14 October. 
• We have a positive view of this equity spin-off. Our NAV valuation of Samyang Holdings suggests an implied price per share of 127,138 won (28.6% higher than current price).

• In yesterday’s hearing, Lotte skipped alternatives and signaled treasury burn, seen as bowing to political pressure, sparking a notable NXT post-market reaction.
• The mandatory treasury burn story hinges on major local holdings and their follow-through. Lotte’s hearing gave a live read, boosting the narrative’s traction in the near-term local market.
• Traders’ takeaway: holding cos with large treasury stakes could outperform, signaling a chance for outright longs, relative weight plays, or NAV discount tightening—time to get more aggressive locally.

Key points (machine generated)

• FnGuide, established in 2000, is a leading provider of market data and equity indices in South Korea.
• The company operates in three segments: financial market data, equity indices, and fund ratings, with the latter having limited market share.
• FnGuide’s ‘Value-Up’ plan focuses on improving stability, profitability, and growth, positioning it alongside global competitors like Factset and S&P Global.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.