Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Lee Family to Sell 2.2 Trillion Won Worth of Samsung Group Affiliates to Pay for Inheritance Tax

Gravity Works As WeWork Doesn't; Now Plan B

Equity Bottom-Up

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<p>It was reported in numerous Korean media that the Japanese government is planning to amend the law in the National Assembly so that it can provide subsidies worth several trillion won to major semiconductor players such as TSMC to build semiconductor plant in Japan.</p>
<p>The bill is expected to contain contents that mention that subsidies are necessary for national security in the chaos caused by the global semiconductor shortage. The purpose of this move is to increase semiconductor chip production amid global shortages and also increase jobs and investments in Japan. </p>
<p><strong>Overall, this major government subsidy to <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-co-ltd" target="_blank" data-smartkarma-citation="entities:1248:1" rel="noopener">Taiwan Semiconductor Co. (5425 TT)</a> (TSMC) is likely to have a negative impact to <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>.</strong> In the past several weeks, Samsung Electronics' share price has been relatively weak due to the concerns about the Lee family selling big stakes due to the need to pay for inheritance taxes. Now, this new legislation in Japan which could provide billions of dollars in subsidies to TSMC could further negatively impact Samsung Electronics' share price. </p>
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It was reported in numerous Korean media that the Japanese government is planning to amend the law in the National Assembly so that it can provide subsidies worth several trillion won to major semiconductor players such as TSMC to build semiconductor plant in Japan.
The bill is expected to contain contents that mention that subsidies are necessary for national security in the chaos caused by the global semiconductor shortage. The purpose of this move is to increase semiconductor chip production amid global shortages and also increase jobs and investments in Japan. 
Overall, this major government subsidy to Taiwan Semiconductor Co. (5425 TT) (TSMC) is likely to have a negative impact to Samsung Electronics (005930 KS). In the past several weeks, Samsung Electronics' share price has been relatively weak due to the concerns about the Lee family selling big stakes due to the need to pay for inheritance taxes. Now, this new legislation in Japan which could provide billions of dollars in subsidies to TSMC could further negatively impact Samsung Electronics' share price. 


Japanese Govt May Provide Several Trillion Won in Subsidy to TSMC To Build A Semicon Plant in Japan