Korea / Special Situations, Clepsydra Capital

Sanghyun Park

Korea / Special Situations

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Event-Driven

Wonik IPS Co., Ltd. manufactures and sells semiconductor processing equipments.  The Company's main businesses include Semiconductor, Display and Solar industries.

<ul>
<li>Fresh intel hit at lunch. Official rollout is penciled for the 11th or 12th, sourced straight from a key gov’t operator and pushed to Hankyung.</li>
<li>The package basically boils down to two levers: juiced tax perks for retail in Kosdaq venture funds and a structural bump-up in pension-fund allocation.</li>
<li>Street sees this as constructive: tax tweaks to pull retail, pension weight-ups to juice flows, and focus on 300bn+ Kosdaq names that beat Q3 consensus 10%+.</li>
</ul>


Fresh intel hit at lunch. Official rollout is penciled for the 11th or 12th, sourced straight from a key gov’t operator and pushed to Hankyung.
The package basically boils down to two levers: juiced tax perks for retail in Kosdaq venture funds and a structural bump-up in pension-fund allocation.
Street sees this as constructive: tax tweaks to pull retail, pension weight-ups to juice flows, and focus on 300bn+ Kosdaq names that beat Q3 consensus 10%+.


Fresh Intel: Kosdaq Stimulus Drop Date & Key Targets

Lotte Rental Co.,Ltd. provides car rental services. The Company offers passenger car rental, commercial car rental, used vehicle rental, and other related services. Lotte Rental offers services worldwide.

<ul>
<li>The next policy swing is mandatory tender offers (MTO), with the gov’t + ruling party pushing for passage this session, likely alongside the mandatory treasury-share cancellation.</li>
<li>2022 FSS/FSC 50%+1 trigger scrapped; 25% stays. Ruling party favors 50%+ MTO, base case 100%, but pushback may reduce to 70–80%.</li>
<li>MTOs tighten discounts, benefit minority holders; focus on local holding firms, PE-backed exits, and parent-driven M&amp;A prospects.</li>
</ul>


The next policy swing is mandatory tender offers (MTO), with the gov’t + ruling party pushing for passage this session, likely alongside the mandatory treasury-share cancellation.
2022 FSS/FSC 50%+1 trigger scrapped; 25% stays. Ruling party favors 50%+ MTO, base case 100%, but pushback may reduce to 70–80%.
MTOs tighten discounts, benefit minority holders; focus on local holding firms, PE-backed exits, and parent-driven M&amp;A prospects.


Korea's 4th Policy Trade Is Right Around the Corner: Mandatory Tender Offers

Samsung Electronics Pref Shares / Event-Driven

Samsung Electronics Co., Ltd. manufactures a wide range of consumer and industrial electronic equipment and products such as semiconductors, personal computers, peripherals, monitors, televisions, and home appliances including air conditioners and microwave ovens. The Company also produces Internet access network systems and telecommunications equipment including mobile phones.

Samsung Electronics Pref Shares (005935 KS)

<ul>
<li>Market eyed 25% top rate, but 30% is still punchy; &lt;100 people hit it, lower than before, giving big shareholders incentive to rotate back into dividends.</li>
<li>The new regime hits only companies with 25% payout last year and +10% YoY dividend: lower than the original draft, and the 10% bump is a solid positive.</li>
<li>Companies &gt;5tn KRW with ≥25% payout last year must boost dividends +10% YoY to get the tax cut; Samsung could add ~1tn KRW, potentially easing its pref discount.</li>
</ul>


Market eyed 25% top rate, but 30% is still punchy; &lt;100 people hit it, lower than before, giving big shareholders incentive to rotate back into dividends.
The new regime hits only companies with 25% payout last year and +10% YoY dividend: lower than the original draft, and the 10% bump is a solid positive.
Companies &gt;5tn KRW with ≥25% payout last year must boost dividends +10% YoY to get the tax cut; Samsung could add ~1tn KRW, potentially easing its pref discount.


Korea Dividend Tax Cut: Eligibility Criteria & Market Impact on Large Caps, Including Samsung Prefs

LG Corp. is a holding company, which operates subsidiaries including LG Electronics, LG Household & Health Care, LG Chem Ltd., and Dacom Corp. The Company's main business areas are electronics, chemicals, and household products manufacturing and telecommunications services.

<ul>
<li>Starting next week, the tax subcommittee is set to hash out the 25% proposal, and with the opposition unlikely to block it, the 25% top rate is basically locked in.</li>
<li>The street’s treating 30% payout as base case, betting on more upside. The committee may pick it up next week, with headlines likely hitting the KRX tape fast.</li>
<li>Locals are already chasing 30%+ payout, deep-value names, with gov’t aiming for a Taiwan-style re-rating. If dividend-tax headlines drop next week, these screened names could rip.</li>
</ul>


Starting next week, the tax subcommittee is set to hash out the 25% proposal, and with the opposition unlikely to block it, the 25% top rate is basically locked in.
The street’s treating 30% payout as base case, betting on more upside. The committee may pick it up next week, with headlines likely hitting the KRX tape fast.
Locals are already chasing 30%+ payout, deep-value names, with gov’t aiming for a Taiwan-style re-rating. If dividend-tax headlines drop next week, these screened names could rip.


Korea's 25% Dividend Tax Basically Locked In, Market Now Trading the 30% Payout Angle

Index Rebalance

Hanwha Engine Co Ltd is an integrated engine manufacturer specializing in producing diesel engine for large vessels. The Company provides business in diesel power plant construction and operation, engine parts sales, and engine maintenance and repair services.

<ul>
<li>IT adds barely move (~0.1x DTV), but Heavy Industries pops: Sanil/Hanwha Engine draw ~0.4x DTV inflows, while Hanwha Vision faces ~0.6x DTV passive outflow.</li>
<li>June precedent: HD Marine Solution grabbed ~0.3x DTV extra inflow and ripped ~12% pre-rebalance, handily outperforming the tape and other KOSPI 200 adds.</li>
<li>Play the same setup: focus on Heavy Industries flow pockets—Sanil, Hanwha Engine, Hanwha Vision out—and eye entries starting Monday ahead of the Dec 8 go-live.</li>
</ul>


IT adds barely move (~0.1x DTV), but Heavy Industries pops: Sanil/Hanwha Engine draw ~0.4x DTV inflows, while Hanwha Vision faces ~0.6x DTV passive outflow.
June precedent: HD Marine Solution grabbed ~0.3x DTV extra inflow and ripped ~12% pre-rebalance, handily outperforming the tape and other KOSPI 200 adds.
Play the same setup: focus on Heavy Industries flow pockets—Sanil, Hanwha Engine, Hanwha Vision out—and eye entries starting Monday ahead of the Dec 8 go-live.


Front-Running the Dec KOSPI 200: Heavy Industries Names Set Up the Real Flow Trade

I investigate special situations in Korea.