Korea / Special Situations, Clepsydra Capital

Sanghyun Park

I investigate special situations in Korea.

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>Structural foreign-cap tightness blocks ADR issuance, disabling arb and making KT’s ADR premium sticky and persistently elevated, especially in high-vol premium expansion phases.</li>
<li>KT’s ADR premium ranged ~0–10% this year, trending higher when local shares sold off, then reversing lower as onshore prices turned up into year-end.</li>
<li>KT’s gradual treasury burn tied to foreign flows may distort onshore trading and cap upside, while ADR premiums stay structurally pinned, creating a clear window for underlying/ADR trades.</li>
</ul>


Structural foreign-cap tightness blocks ADR issuance, disabling arb and making KT’s ADR premium sticky and persistently elevated, especially in high-vol premium expansion phases.
KT’s ADR premium ranged ~0–10% this year, trending higher when local shares sold off, then reversing lower as onshore prices turned up into year-end.
KT’s gradual treasury burn tied to foreign flows may distort onshore trading and cap upside, while ADR premiums stay structurally pinned, creating a clear window for underlying/ADR trades.


KT Treasury Burn: Flow Distortion & Sticky ADR Premium Trade Angle

KT Corp Sp Adr

KT Treasury Burn: Flow Distortion & Sticky ADR Premium Trade Angle