Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>We believe that there is a relatively high probability that the Korean government will lower the highest corporate tax rate bracket from 25% to 22% starting next year.</li>
<li>A 3% change in corporate tax rate should result in about 4% higher net profit for Korean companies.</li>
<li>Among the top 30 companies in Korea, we believe the companies with the biggest impact on lowering their tax rates include LG Electronics, Naver, Kakao Corp, SK Innovation, and KT&amp;G. </li>
</ul>


We believe that there is a relatively high probability that the Korean government will lower the highest corporate tax rate bracket from 25% to 22% starting next year.
A 3% change in corporate tax rate should result in about 4% higher net profit for Korean companies.
Among the top 30 companies in Korea, we believe the companies with the biggest impact on lowering their tax rates include LG Electronics, Naver, Kakao Corp, SK Innovation, and KT&amp;G. 


Lower Corporate Tax Rate in Korea Could Be an Extra Alpha Kicker

Event-Driven

<ul>
<li>Korea Investment Management will be launching a new nuclear power related ETF called Kindex Nuclear Theme Deep Search ETF on 28 June. </li>
<li>NH-Amundi Asset Management will also be launching Hanaro Nuclear iSelect ETF on 28 June. Both ETFs are the first ones to focus on the nuclear power related stocks in Korea.</li>
<li>The launch of these ETFs should have a positive impact on the major nuclear power related stocks including Doosan Enerbility (034020 KS) and Kepco Plant Service &amp; Engineering (051600 KS).</li>
</ul>


Korea Investment Management will be launching a new nuclear power related ETF called Kindex Nuclear Theme Deep Search ETF on 28 June. 
NH-Amundi Asset Management will also be launching Hanaro Nuclear iSelect ETF on 28 June. Both ETFs are the first ones to focus on the nuclear power related stocks in Korea.
The launch of these ETFs should have a positive impact on the major nuclear power related stocks including Doosan Enerbility (034020 KS) and Kepco Plant Service &amp; Engineering (051600 KS).


Launch of Kindex Nuclear Theme Deep Search ETF & Hanaro Nuclear ISelect ETF in Korea

Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Clepsydra Capital

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

Kepco Engineering & Construction / Event-Driven

<ul>
<li>Since KEPCO announced the sale of its stake in KEPCO E&amp;C, this will happen. But the question is when, and the market was betting that it would not happen immediately.</li>
<li>But these bets collapsed yesterday. It is because Choo Kyung-ho, Deputy Prime Minister of Economy, publicly made remarks yesterday that seemed to pressure KEPCO to make additional self-rescue efforts.</li>
<li>KEPCO may aim at the level of ₩60,000 by applying a 5-7% discount rate from the mid-₩60,000 price. With this price in mind, we need to time this block deal.</li>
</ul>


Since KEPCO announced the sale of its stake in KEPCO E&amp;C, this will happen. But the question is when, and the market was betting that it would not happen immediately.
But these bets collapsed yesterday. It is because Choo Kyung-ho, Deputy Prime Minister of Economy, publicly made remarks yesterday that seemed to pressure KEPCO to make additional self-rescue efforts.
KEPCO may aim at the level of ₩60,000 by applying a 5-7% discount rate from the mid-₩60,000 price. With this price in mind, we need to time this block deal.


Discussing How We Should Time the KEPCO E&C Block Deal

Korea Electric Power (KEPCO) / Event-Driven

<ul>
<li>After the market close today, KEPCO announced that NPS plans to increase its ownership of the company from 6.43% to as high as 10% by 2025.</li>
<li>This announcement is likely to have a positive impact on KEPCO's shares both in the near term as well as over the next three years.</li>
<li>If NPS has a greater stake in KEPCO, this could encourage the government to raise electricity prices since the government wants the investments made by the NPS to perform well. </li>
</ul>


After the market close today, KEPCO announced that NPS plans to increase its ownership of the company from 6.43% to as high as 10% by 2025.
This announcement is likely to have a positive impact on KEPCO's shares both in the near term as well as over the next three years.
If NPS has a greater stake in KEPCO, this could encourage the government to raise electricity prices since the government wants the investments made by the NPS to perform well. 


NPS Plans to Increase Its Stake in KEPCO from 6.4% to Up to 10.0%

<div class="content-highlight">
<p>On 28 May, Korea's National Pension Fund (NPS) announced its new <a href="https://news.mt.co.kr/mtview.php?no=2021052820172973220" target="_blank" rel="noopener">5 year plan</a> to reduce the asset allocation of Korean equities to 14.5% of total assets at the end of 2026, down from the current target of 16.8% of total assets at the end of 2021. NPS now is targeting overseas equity asset allocation targets to increase from 25.1% at the end of 2021 to 35.5% at the end of 2026.</p>
<p>NPS is targeting equity, fixed income and alternative assets to account for 50%, 35%, and 15% of total assets by the end of 2026. NPS has set an annual expected return of 5.1% for its total invested assets from 2021 to 2026.</p>
</div>


On 28 May, Korea's National Pension Fund (NPS) announced its new 5 year plan to reduce the asset allocation of Korean equities to 14.5% of total assets at the end of 2026, down from the current target of 16.8% of total assets at the end of 2021. NPS now is targeting overseas equity asset allocation targets to increase from 25.1% at the end of 2021 to 35.5% at the end of 2026.
NPS is targeting equity, fixed income and alternative assets to account for 50%, 35%, and 15% of total assets by the end of 2026. NPS has set an annual expected return of 5.1% for its total invested assets from 2021 to 2026.


NPS Announces A Reduction in Asset Allocation in Korean Equities to 14.5% of Assets by 2026

South Korea

Korea Electric Power Corporation (KEPCO) generates, transmits, and distributes electricity to South Korea for a variety of uses. The Company also builds and operates hydro-power, thermal-power, and nuclear power units in South Korea.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Korea Electric Power (KEPCO) (015760 KS)

Lower Corporate Tax Rate in Korea Could Be an Extra Alpha Kicker

We believe that there is a relatively high probability that the Korean government will lower the highest corporate tax rate bracket from 25% to 22%...

Douglas Kim

Launch of Kindex Nuclear Theme Deep Search ETF & Hanaro Nuclear ISelect ETF in Korea

The launch of the new nuclear power related ETFs should have a positive impact on the major nuclear power related stocks including Doosan...

Douglas Kim

Discussing How We Should Time the KEPCO E&C Block Deal

This post gives the background story surrounding the KEPCO E&C block deal and discusses how we should time this stake sale event.

Sanghyun Park

NPS Plans to Increase Its Stake in KEPCO from 6.4% to Up to 10.0%

After the market close today, KEPCO announced that NPS plans to increase its ownership of the company from 6.43% to as high as 10% by 2025.

Douglas Kim

NPS Announces A Reduction in Asset Allocation in Korean Equities to 14.5% of Assets by 2026

On 28 May, NPS announced its new 5 year plan to reduce the asset allocation of Korean equities to 14.5% of total assets at the end of 2026, down...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)