Asset Allocation & Fund Positioning, Copley Fund Research

Steven Holden

Asset Allocation & Fund Positioning

Copley Fund Research

Copley Fund Research provide research and data on asset allocation among Global and Emerging Market equity funds.  The analysis details absolute and relative positioning across countries, sectors and industries together with highly granular data on single stock and single fund allocations.  The data is updated monthly with time series going back to January 2011.

Global Research - Analysis of 165 prominent Global equity funds, combined AUM $335bn
GEM Research - Analysis of 127 prominent global EM equity funds, combined AUM $250bn

Asset Allocation - Global and GEM Equity

Equity Bottom-Up

<p><a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> has seen a rapid rise in ownership among global emerging market investors.</p><p><a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> now sits among the big players in the sector, just behind <a href="https://www.smartkarma.com/entities/naspers-ltd" target="_blank" data-smartkarma-citation="entities:21085:1" rel="noopener">Naspers (NPN SJ)</a> and in line with <a href="https://www.smartkarma.com/entities/netease-inc-adr" target="_blank" data-smartkarma-citation="entities:17203:1" rel="noopener">NetEase Inc (NTES US).</a></p><p>Recent Activity shows <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> capturing the most new investors in 2021 among South Korean peers, with the funds invested percentage rising by 5% - marginally ahead of <a href="https://www.smartkarma.com/entities/kakao-corp" target="_blank" data-smartkarma-citation="entities:15002:1" rel="noopener">Kakao Corp (035720 KS)</a> and <a href="https://www.smartkarma.com/entities/lx-holdings" target="_blank" data-smartkarma-citation="entities:33384:1" rel="noopener">LX Holdings (383800 KS).</a></p><p>All this points to <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> as a high conviction holding among active EM managers, and whilst a combination of record investment and price levels leaves <a href="https://www.smartkarma.com/entities/naver-corp" target="_blank" data-smartkarma-citation="entities:16029:1" rel="noopener">Naver Corp (035420 KS)</a> vulnerable to consolidation, there are many previous investors who may pick up the slack if prices fall.</p>

Naver Corp (035420 KS) has seen a rapid rise in ownership among global emerging market investors.Naver Corp (035420 KS) now sits among the big players in the sector, just behind Naspers (NPN SJ) and in line with NetEase Inc (NTES US).Recent Activity shows Naver Corp (035420 KS) capturing the most new investors in 2021 among South Korean peers, with the funds invested percentage rising by 5% - marginally ahead of Kakao Corp (035720 KS) and LX Holdings (383800 KS).All this points to Naver Corp (035420 KS) as a high conviction holding among active EM managers, and whilst a combination of record investment and price levels leaves Naver Corp (035420 KS) vulnerable to consolidation, there are many previous investors who may pick up the slack if prices fall.

Naver Corp (035420 KS):  Soaring in to the Big League

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.

Event-Driven

<p>The last remaining step in the LG Group split is the exchange of shares between the major shareholders, as the largest shareholder of LX Holdings is still LG Group Chairman Koo Kwang-mo.</p><p>The stake exchange method is highly likely to be cross-trading through after-hours trading. This is the method used when the GS group was separated from the LG group. GS Group started to exchange shares one month after being separated from LG Group in 2004. Therefore, the market expects that the share exchange between LG and LX Holdings will also start in the not-too-distant future.</p><h2><strong>Then, the key is the difference in value that occurs during the exchange of shares.</strong></h2><p>The shares to be exchanged are an 8.32% stake in LG Holdings owned by LX Chairman Koo Bon-joon and his son and a 47.57% stake in LX Holdings owned by LG Chairman Koo Kwang-mo and other family members.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Major shareholding"}'>Major shareholding</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"LG Corp"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>LG Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"LX Holdings Corp"}' data-sheets-formula='=googlefinance(R[1]C[0], "name")'>LX Holdings Corp</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Market cap"}'>Market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":16123.3517825}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000">₩16,123.4B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":861.971797}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-2]C[0]*R[-1]C[0]/1000000000">₩862.0B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Koo Kwang-mo"}'>Koo Kwang-mo</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1595}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>15.95%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1595}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'><strong>15.95%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"- Market value"}'>- Market value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2571.67460930875}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula='=googlefinance(R2C[0], "shares")*googlefinance(R2C[0], "price")/1000000000*R[-1]C[0]'>₩2,571.7B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":137.48450162150002}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula='=googlefinance(R2C[0], "shares")*googlefinance(R2C[0], "price")/1000000000*R[-1]C[0]'><strong>₩137.5B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"The other family members"}'>The other family members</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2162}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=45.89%-R[-2]C[0]-R[2]C[0]">21.62%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.2162}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=45.89%-R[-2]C[0]-R[2]C[0]"><strong>21.62%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"- Market value"}'>- Market value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3485.8686553765}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula='=googlefinance(R2C[0], "shares")*googlefinance(R2C[0], "price")/1000000000*R[-1]C[0]'>₩3,485.9B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":186.3583025114}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula='=googlefinance(R2C[0], "shares")*googlefinance(R2C[0], "price")/1000000000*R[-1]C[0]'><strong>₩186.4B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Koo Bon-joon &amp; his son"}'>Koo Bon-joon &amp; his son</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0832}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=7.72%+0.6%"><strong>8.32%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.0832}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=7.72%+0.6%">8.32%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"- Market value"}'>- Market value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1341.462868304}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula='=googlefinance(R2C[0], "shares")*googlefinance(R2C[0], "price")/1000000000*R[-1]C[0]'><strong>₩1,341.5B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":71.7160535104}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula='=googlefinance(R2C[0], "shares")*googlefinance(R2C[0], "price")/1000000000*R[-1]C[0]'>₩71.7B</td>
</tr>
<tr><td colspan="3"><strong> </strong></td></tr>
<tr>
<td><strong>Swap target</strong></td>
<td style="text-align: right;"><strong>₩1,341.5B</strong></td>
<td style="text-align: right;"><strong>₩323.8B</strong></td>
</tr>
<tr><td colspan="3" data-sheets-value='{"1":2,"2":"Source: KRX FIND"}'>Source: KRX FIND</td></tr>
</tbody>
</table><p>These are ₩1,341.5B and ₩323.8B, respectively. The difference in value is ₩1,024.2B. According to the Fair Trade Act, LX Chairman Koo Bon-joon can hold less than 3% in LG Holdings. So, if Chairman Koo Bon-joon decides to hold a 3% stake in LG Holdings, the difference in value at the time of the exchange of shares will be ₩533.9B.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Koo Bon-joon needs to buy"}'>LX Holdings stake that Koo Bon-joon needs to buy</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Koo Kwang-mo"}'>Koo Kwang-mo</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":137.48450162150002}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-8]C[1]">₩137.5B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"The other family members"}'>The other family members</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":186.3583025114}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-7]C[1]">₩186.4B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Total"}'>- Total</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":323.8428041329}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=sum(R[-2]C[0]:R[-1]C[0])">₩323.8B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Difference"}'><strong>Difference</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1017.6200641711}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=R[-7]C[0]-R[-1]C[0]"><strong>₩1,017.6B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Keeping a 3% stake"}'><strong>Difference if keeps a 3% stake in LG Holdings</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":533.9195106960999}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.0B"}' data-sheets-formula="=(R[-14]C[0]*(R[-9]C[0]-3%))-R[-2]C[0]"><strong>₩533.9B</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

The last remaining step in the LG Group split is the exchange of shares between the major shareholders, as the largest shareholder of LX Holdings is still LG Group Chairman Koo Kwang-mo.The stake exchange method is highly likely to be cross-trading through after-hours trading. This is the method used when the GS group was separated from the LG group. GS Group started to exchange shares one month after being separated from LG Group in 2004. Therefore, the market expects that the share exchange between LG and LX Holdings will also start in the not-too-distant future.Then, the key is the difference in value that occurs during the exchange of shares.The shares to be exchanged are an 8.32% stake in LG Holdings owned by LX Chairman Koo Bon-joon and his son and a 47.57% stake in LX Holdings owned by LG Chairman Koo Kwang-mo and other family members.







Major shareholding
LG Corp
LX Holdings Corp


Market cap
₩16,123.4B
₩862.0B


Koo Kwang-mo
15.95%
15.95%


- Market value
₩2,571.7B
₩137.5B


The other family members
21.62%
21.62%


- Market value
₩3,485.9B
₩186.4B


Koo Bon-joon &amp; his son
8.32%
8.32%


- Market value
₩1,341.5B
₩71.7B

 

Swap target
₩1,341.5B
₩323.8B

Source: KRX FIND

These are ₩1,341.5B and ₩323.8B, respectively. The difference in value is ₩1,024.2B. According to the Fair Trade Act, LX Chairman Koo Bon-joon can hold less than 3% in LG Holdings. So, if Chairman Koo Bon-joon decides to hold a 3% stake in LG Holdings, the difference in value at the time of the exchange of shares will be ₩533.9B.





LX Holdings stake that Koo Bon-joon needs to buy

Koo Kwang-mo
₩137.5B


The other family members
₩186.4B


- Total
₩323.8B


Difference
₩1,017.6B


Difference if keeps a 3% stake in LG Holdings
₩533.9B

Source: KRX



LG Corp: Major Shareholder Stock Swap Situation Checkup

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

<p>The Korea Exchange (KRX) will announce the results of the December 2021 review of the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> in November. The constituent changes will be effective after the close of trading on 9 December.</p><p>There could be a change at the September futures expiry with <a href="https://www.smartkarma.com/entities/sd-biosensor-inc" target="_blank" data-smartkarma-citation="entities:33333:1" rel="noopener">SD Biosensor (SDBIOZ KS)</a> getting Fast Entry into the index. We see <a href="https://www.smartkarma.com/entities/lock-lock-co-ltd" target="_blank" data-smartkarma-citation="entities:4739:1" rel="noopener">Lock&amp;Lock (115390 KS)</a> as a potential deletion to make way for <a href="https://www.smartkarma.com/entities/sd-biosensor-inc" target="_blank" data-smartkarma-citation="entities:33333:1" rel="noopener">SD Biosensor (SDBIOZ KS)</a>. </p><p>At the current time, we see 3 potential changes at the regular review in December with F&amp;F Co (383220 KS), <a href="https://www.smartkarma.com/entities/sl-corp" target="_blank" data-smartkarma-citation="entities:20694:1" rel="noopener">Sl Corp (005850 KS)</a> and <a href="https://www.smartkarma.com/entities/seah-besteel-corp" target="_blank" data-smartkarma-citation="entities:11760:1" rel="noopener">Seah Besteel (001430 KS)</a> replacing <a href="https://www.smartkarma.com/entities/samyang-foods-co-ltd" target="_blank" data-smartkarma-citation="entities:9100:1" rel="noopener">Samyang Foods (003230 KS)</a>, <a href="https://www.smartkarma.com/entities/f-f-co-ltd" target="_blank" data-smartkarma-citation="entities:15983:1" rel="noopener">F&amp;F Co Ltd (007700 KS)</a> and <a href="https://www.smartkarma.com/entities/jw-pharmaceutical-corp" target="_blank" data-smartkarma-citation="entities:18784:1" rel="noopener">Jw Pharmaceutical (001060 KS)</a>. These names could change over the next few months and their prices (and the prices of the other stocks) move around.</p><p>After the 100%+ returns in the <a href="https://www.smartkarma.com/entities/korea-stock-exchange-kospi-200-index" target="_blank" data-smartkarma-citation="entities:26021:1" rel="noopener">Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX)</a> June review by buying the inclusions and selling the exclusions (or the KOSPI2 index futures), there will be a lot of interest in the December review.</p><p>In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at potential candidates for inclusion/exclusion in this review and some of the details around the names.</p>

The Korea Exchange (KRX) will announce the results of the December 2021 review of the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) in November. The constituent changes will be effective after the close of trading on 9 December.There could be a change at the September futures expiry with SD Biosensor (SDBIOZ KS) getting Fast Entry into the index. We see Lock&amp;Lock (115390 KS) as a potential deletion to make way for SD Biosensor (SDBIOZ KS). At the current time, we see 3 potential changes at the regular review in December with F&amp;F Co (383220 KS), Sl Corp (005850 KS) and Seah Besteel (001430 KS) replacing Samyang Foods (003230 KS), F&amp;F Co Ltd (007700 KS) and Jw Pharmaceutical (001060 KS). These names could change over the next few months and their prices (and the prices of the other stocks) move around.After the 100%+ returns in the Korea Stock Exchange Kospi 200 Index (KOSPI2 INDEX) June review by buying the inclusions and selling the exclusions (or the KOSPI2 index futures), there will be a lot of interest in the December review.In this Insight we look at the KOSPI 200 index methodology, the historical performance of inclusions vs exclusions, at potential candidates for inclusion/exclusion in this review and some of the details around the names.

KOSPI200 Index Rebalance Preview: Focus Shifts to December After a Fantastic June Review

<p>LG Corp's 3-day correction puts the price ratio to its synthetic 21.83% below the 180-day high. It is now pretty much at the 180-day mean. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/210/322/original/LG+Corp+vs+Synthetic+Subsidiary.png?1622503301" class="editor-image img-responsive" data-smartkarma-image-id="210322"></figure></section><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"LG Corp"}' data-sheets-formula="=R[-80]C[0]">LG Corp</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Current sigma on a 20-day moving average"}'>Current sigma on a 20-day moving average</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-2.7385958489570132}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula='=indirect("$B"&amp;R[8]C[0])'>-2.74σ</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"%Δ to 180-day mean"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>Price ratio %Δ to 180-day mean</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.026883633025444442}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=indirect("$B"&amp;R[6]C[0])'><strong>+2.69%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"%Δ to 180-day high"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>Price ratio %Δ to 180-day high</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-0.21831222028206346}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=indirect("$C"&amp;R[5]C[0])'><strong>-21.83%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"%Δ to 180-day low"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'>Price ratio %Δ to 180-day low</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.20080215233447854}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=indirect("$D"&amp;R[4]C[0])'>+20.08%</td>
</tr>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>LG Corp is now at a 71.34% discount to its NAV. LX Holdings is also pushed down to a 40.78% discount to the NAV with a 3-day price correction of 56.72% from the base price.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"NAV"}' data-sheets-note="Sang Hyun Park: Cases when a company's net cash position and the value of its publically traded interests are worth more than its market cap create the opportunity of a stub trade, in which investors can take a view that the company's core business will rise by shorting the minority stakes whilst going long the underlying. Such an opportunity has arisen in the wake of the Alibaba listing which has seen early investing company Yahoo trade at a discount to the value of its stake in Alibaba.">NAV</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"LG Corp"}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-12]C[0]">LG Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"LX Holdings Corp"}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[-12]C[5]">LX Holdings Corp</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of listed holdings"}'>Value of listed holdings</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":38492.822249340556}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=SUM(R[31]C[2]:R[36]C[2])">₩38,492.8B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1157.0833809438}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=SUM(R[27]C[7]:R[29]C[7])">₩1,157.1B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - % of Holdco market cap"}'>- % of Holdco market cap</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2.6578371305170547}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-1]C[0]/((R[-12]C[0]*R[-15]C[0])/1000000000)">265.78%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.3852747681580349}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=R[-1]C[0]/((R[-12]C[5]*R[-15]C[5])/1000000000)">138.53%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of unlisted holdings"}'>Value of unlisted holdings</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2516.349}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=SUM(R[35]C[2]:R[36]C[2])">₩2,516.3B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":115.35}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=SUM(R[28]C[7])">₩115.4B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stub value"}'>Stub value</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-26526.4093797853}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=(R[-14]C[0]*R[-17]C[0]/1000000000)-R[-3]C[0]-R[-1]C[0]">-₩26,526.4B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-437.15982544379995}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=(R[-14]C[5]*R[-17]C[5]/1000000000)-R[-3]C[0]-R[-1]C[0]">-₩437.2B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Stub value per share"}'>Stub value per share</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-184990.08486705087}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-1]C[0]*1000000000/R[-18]C[0]">-₩184,990</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":-5730.936957227313}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-1]C[0]*1000000000/R[-18]C[5]">-₩5,731</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of operating assets"}'>Value of operating assets</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7940}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=SUM(R[51]C[2])">₩7,940.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=SUM(R[39]C[7])">₩0.0B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"GAV"}'>GAV</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":48949.17124934056}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[-6]C[0]+R[-4]C[0]+R[-1]C[0]">₩48,949.2B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1272.4333809437999}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[-6]C[0]+R[-4]C[0]+R[-1]C[0]">₩1,272.4B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"GAV per share"}'>GAV per share</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":341362.12006468733}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-1]C[0]/R[-11]C[0]*1000000000">₩341,362</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":16680.936957227314}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-1]C[0]/R[-11]C[5]*1000000000">₩16,681</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount to GAV (excl. treasury shares)"}'>Discount to GAV (excl. treasury shares)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7041265153237837}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-1]C[0]-R[-19]C[0])/R[-1]C[0]">70.41%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.34356205361379794}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-1]C[0]-R[-19]C[5])/R[-1]C[0]">34.36%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Holdco net cash/debt (de-consolidated)"}'>Holdco net cash/debt (de-consolidated)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1770.0119120000002}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[48]C[2]">₩1,770.0B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":172}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[36]C[7]">₩172.0B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Value of pref shares"}'>Value of pref shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":194.7411866891386}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=(R[-20]C[0]*R[-17]C[0])/1000000000">₩194.7B</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":33.92134775}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=(R[-20]C[5]*R[-17]C[5])/1000000000">₩33.9B</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"NAV"}'><strong>NAV</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":50524.44197465142}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[-5]C[0]+R[-2]C[0]-R[-1]C[0]"><strong>₩50,524.4B</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1410.5120331937999}' data-sheets-numberformat='[null,2,"₩#,##0.0B",1]' data-sheets-formula="=R[-5]C[0]+R[-2]C[0]-R[-1]C[0]"><strong>₩1,410.5B</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"NAV per share (excl. treasury shares)"}'><strong>NAV per share (excl. treasury shares)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":352347.7555870701}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-1]C[0]/R[-16]C[0]*1000000000"><strong>₩352,348</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":18491.075961607057}' data-sheets-numberformat='[null,2,"[$₩-412]#,##0",1]' data-sheets-formula="=R[-1]C[0]/R[-16]C[5]*1000000000"><strong>₩18,491</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Discount to NAV"}'><strong>Discount to NAV</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7133513740375126}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-1]C[0]-R[-24]C[0])/R[-1]C[0]"><strong>71.34%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4078224532344446}' data-sheets-numberformat='[null,3,"0.00%",1]' data-sheets-formula="=(R[-1]C[0]-R[-24]C[5])/R[-1]C[0]"><strong>40.78%</strong></td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX &amp; DART","6":1}'>Source: KRX &amp; DART</td></tr>
</tbody>
</table><p>LG Corp's 71.34% NAV discount is the highest even among the highly-discounted comparable local holding companies.</p><table class="table table-striped">
<colgroup>
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr><td colspan="2" data-sheets-value='{"1":2,"2":"Discount &amp; weight"}'>NAV discount of the comparable local holding companies at the last closing prices</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"LG Corp"}' data-sheets-formula="=R[-22]C[0]"><strong>LG Corp</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7133513740375126}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[6]C[0]"><strong>71.34%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Samsung C&amp;T Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-22]C[0]">Samsung C&amp;T Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.600814867090198}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[5]C[12]">60.08%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Inc"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-22]C[0]">SK Inc</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5200541636690171}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[4]C[18]">52.01%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lotte Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-22]C[0]">Lotte Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5479794057666695}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[3]C[24]">54.80%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hanwha Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-22]C[0]">Hanwha Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5802746134439841}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[2]C[30]">58.03%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"CJ Corp"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-22]C[0]">CJ Corp</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.4699156030660857}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[1]C[36]">46.99%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kolmar Korea Holdings Co Ltd"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-22]C[0]">Kolmar Korea Holdings Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5027453492894413}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[0]C[42]">50.27%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Harim Holdings Co Ltd"}' data-sheets-numberformat='[null,4,"[$₩]#,##0"]' data-sheets-formula="=R[-22]C[0]">Harim Holdings Co Ltd</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.6911875863701072}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula="=NAV!R[-1]C[54]">69.12%</td>
</tr>
<tr><td colspan="2">Source: KRX &amp; DART</td></tr>
</tbody>
</table>

LG Corp's 3-day correction puts the price ratio to its synthetic 21.83% below the 180-day high. It is now pretty much at the 180-day mean. 





LG Corp

Current sigma on a 20-day moving average
-2.74σ


Price ratio %Δ to 180-day mean
+2.69%


Price ratio %Δ to 180-day high
-21.83%


Price ratio %Δ to 180-day low
+20.08%

Source: KRX

LG Corp is now at a 71.34% discount to its NAV. LX Holdings is also pushed down to a 40.78% discount to the NAV with a 3-day price correction of 56.72% from the base price.







NAV
LG Corp
LX Holdings Corp


Value of listed holdings
₩38,492.8B
₩1,157.1B


- % of Holdco market cap
265.78%
138.53%


Value of unlisted holdings
₩2,516.3B
₩115.4B


Stub value
-₩26,526.4B
-₩437.2B


Stub value per share
-₩184,990
-₩5,731


Value of operating assets
₩7,940.0B
₩0.0B


GAV
₩48,949.2B
₩1,272.4B


GAV per share
₩341,362
₩16,681


Discount to GAV (excl. treasury shares)
70.41%
34.36%


Holdco net cash/debt (de-consolidated)
₩1,770.0B
₩172.0B


Value of pref shares
₩194.7B
₩33.9B


NAV
₩50,524.4B
₩1,410.5B


NAV per share (excl. treasury shares)
₩352,348
₩18,491


Discount to NAV
71.34%
40.78%

Source: KRX &amp; DART

LG Corp's 71.34% NAV discount is the highest even among the highly-discounted comparable local holding companies.





NAV discount of the comparable local holding companies at the last closing prices

LG Corp
71.34%


Samsung C&amp;T Corp
60.08%


SK Inc
52.01%


Lotte Corp
54.80%


Hanwha Corp
58.03%


CJ Corp
46.99%


Kolmar Korea Holdings Co Ltd
50.27%


Harim Holdings Co Ltd
69.12%

Source: KRX &amp; DART



LG Corp: Block Deal Concern Causes an Even Harsher Correction

<p>The KRX has just released the base prices of the four re-listings from the LG Corp spinoff scheduled for May 27.</p><div class="content-highlight">
<p><em>For your information, we have two regulatory filing websites: 1. DART (operated by the Korea Financial Supervisory Service) and 2. KIND (operated by the KRX). This kind of corporate action filings is only published at the KIND.  Following are the links to the regulatory filings at the KIND.</em></p>
<ul>
<li><a href="https://kind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptno=20210526000318&amp;docno=&amp;viewerhost=&amp;viewerport=" target="_blank" rel="noopener">LG Corp</a></li>
<li><a href="https://kind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptno=20210526000321&amp;docno=&amp;viewerhost=&amp;viewerport=" target="_blank" rel="noopener">LG Corp 1P</a></li>
<li><a href="https://kind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptno=20210526000323&amp;docno=&amp;viewerhost=&amp;viewerport=" target="_blank" rel="noopener">LX Holdings</a></li>
<li><a href="https://kind.krx.co.kr/common/disclsviewer.do?method=search&amp;acptno=20210526000328&amp;docno=&amp;viewerhost=&amp;viewerport=" target="_blank" rel="noopener">LX Holdings 1P</a></li>
</ul>
</div><h2>Base prices</h2><p>The base prices of all four companies haven't changed from the previous closing prices on April 28. It means that the updated split ratio based on the most recent financials (1Q21) was pretty much the same as the previously calculated split ratio based on the 3Q20 financials.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 146.364px;" data-sheets-value='{"1":2,"2":"Base prices"}'>Base prices</td>
<td style="text-align: right; width: 107.273px;" data-sheets-value='{"1":2,"2":"LG Corp"}'>LG Corp</td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":2,"2":"LG Corp 1P"}'>LG Corp 1P</td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":2,"2":"LX Holdings"}'>LX Holdings</td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":2,"2":"LX Holdings 1P"}'>LX Holdings 1P</td>
</tr>
<tr>
<td style="width: 146.364px;" data-sheets-value='{"1":2,"2":"Ticker"}'><strong>Ticker</strong></td>
<td style="text-align: right; width: 107.273px;" data-sheets-value='{"1":2,"2":"003550"}' data-sheets-formula='="003550"'><strong>003550</strong></td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":2,"2":"003555"}' data-sheets-formula='="003555"'><strong>003555</strong></td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":2,"2":"383800"}' data-sheets-formula='="383800"'><strong>383800</strong></td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":2,"2":"383805"}' data-sheets-formula='="383805"'><strong>383805</strong></td>
</tr>
<tr>
<td style="width: 146.364px;" data-sheets-value='{"1":2,"2":"Base price"}'><strong>Base price</strong></td>
<td style="text-align: right; width: 107.273px;" data-sheets-value='{"1":3,"3":126500}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>₩126,500</strong></td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":3,"3":99500}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>₩99,500</strong></td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":3,"3":25300}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>₩25,300</strong></td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":3,"3":19900}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}'><strong>₩19,900</strong></td>
</tr>
<tr>
<td style="width: 146.364px;" data-sheets-value='{"1":2,"2":"Ceiling price at the opening (x 2)"}'>Ceiling price at the opening (base price x 2)</td>
<td style="text-align: right; width: 107.273px;" data-sheets-value='{"1":3,"3":253000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-1]C[0]*2">₩253,000</td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":3,"3":199000}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-1]C[0]*2">₩199,000</td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":3,"3":50600}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-1]C[0]*2">₩50,600</td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":3,"3":39800}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=R[-1]C[0]*2">₩39,800</td>
</tr>
<tr>
<td style="width: 146.364px;" data-sheets-value='{"1":2,"2":"Floor price at the opening (x 0.5)"}'>Floor price at the opening (base price x 0.5)</td>
<td style="text-align: right; width: 107.273px;" data-sheets-value='{"1":3,"3":63300}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=ceiling(R[-2]C[0]/2, 100)">₩63,300</td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":3,"3":49750}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=ceiling(R[-2]C[0]/2, 10)">₩49,750</td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":3,"3":12650}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=ceiling(R[-2]C[0]/2, 10)">₩12,650</td>
<td style="text-align: right; width: 129.091px;" data-sheets-value='{"1":3,"3":9950}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0"}' data-sheets-formula="=ceiling(R[-2]C[0]/2, 10)">₩9,950</td>
</tr>
<tr><td colspan="5" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>Base price calculation:</p><ul>
<li>A = Market cap at the previous close on April 28</li>
<li>B = Updated split ratio based on the most recent financials (1Q21)</li>
<li>C = Total shares based on the previous split ratio calculated with the 3Q20 financials</li>
<li><strong>Base price for each company = A × B / C</strong></li>
</ul><h2>Market caps</h2><div><p>LG Corp can begin tomorrow as low as ₩9.95T or as high as ₩39.80T. LG Corp opens at a range of ₩150.3~601.3B. LX Holdings can greet its shareholders at a market cap as low as ₩0.97T or as high as ₩3.86T. Lastly, LX Holdings 1P will begin at a range of ₩14.6~58.3B.</p></div><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 136.364px;" data-sheets-value='{"1":2,"2":"Market caps"}'>Market caps</td>
<td style="text-align: right; width: 121.818px;" data-sheets-value='{"1":2,"2":"LG Corp"}'>LG Corp</td>
<td style="text-align: right; width: 126.364px;" data-sheets-value='{"1":2,"2":"LG Corp 1P"}'>LG Corp 1P</td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":2,"2":"LX Holdings"}'>LX Holdings</td>
<td style="text-align: right; width: 127.273px;" data-sheets-value='{"1":2,"2":"LX Holdings 1P"}'>LX Holdings 1P</td>
</tr>
<tr>
<td style="width: 136.364px;" data-sheets-value='{"1":2,"2":"Shares outstanding"}'>Shares outstanding</td>
<td style="text-align: right; width: 121.818px;" data-sheets-value='{"1":3,"3":157300993}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[31]C[0]">157,300,993</td>
<td style="text-align: right; width: 126.364px;" data-sheets-value='{"1":3,"3":3021620.326859276}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[31]C[0]">3,021,620</td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":3,"3":76280690}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[33]C[-2]">76,280,690</td>
<td style="text-align: right; width: 127.273px;" data-sheets-value='{"1":3,"3":1465285}' data-sheets-numberformat='[null,2,"#,##0",1]' data-sheets-formula="=R[33]C[-2]">1,465,285</td>
</tr>
<tr>
<td style="width: 136.364px;" data-sheets-value='{"1":2,"2":"Base price"}'><strong>Base price</strong></td>
<td style="text-align: right; width: 121.818px;" data-sheets-value='{"1":3,"3":19898.5756145}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000"><strong>₩19,898.6B</strong></td>
<td style="text-align: right; width: 126.364px;" data-sheets-value='{"1":3,"3":300.6512225224979}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000"><strong>₩300.7B</strong></td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":3,"3":1929.901457}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000"><strong>₩1,929.9B</strong></td>
<td style="text-align: right; width: 127.273px;" data-sheets-value='{"1":3,"3":29.1591715}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000"><strong>₩29.2B</strong></td>
</tr>
<tr>
<td style="width: 136.364px;" data-sheets-value='{"1":2,"2":"Ceiling price at the opening (x 2)"}'>Ceiling price at the opening (base price x 2)</td>
<td style="text-align: right; width: 121.818px;" data-sheets-value='{"1":3,"3":39797.151229}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000">₩39,797.2B</td>
<td style="text-align: right; width: 126.364px;" data-sheets-value='{"1":3,"3":601.3024450449958}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000">₩601.3B</td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":3,"3":3859.802914}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000">₩3,859.8B</td>
<td style="text-align: right; width: 127.273px;" data-sheets-value='{"1":3,"3":58.318343}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000">₩58.3B</td>
</tr>
<tr>
<td style="width: 136.364px;" data-sheets-value='{"1":2,"2":"Floor price at the opening (x 0.5)"}'>Floor price at the opening (base price x 0.5)</td>
<td style="text-align: right; width: 121.818px;" data-sheets-value='{"1":3,"3":9957.1528569}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000">₩9,957.2B</td>
<td style="text-align: right; width: 126.364px;" data-sheets-value='{"1":3,"3":150.32561126124895}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000">₩150.3B</td>
<td style="text-align: right; width: 128.182px;" data-sheets-value='{"1":3,"3":964.9507285}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000">₩965.0B</td>
<td style="text-align: right; width: 127.273px;" data-sheets-value='{"1":3,"3":14.57958575}' data-sheets-numberformat='[null,2,"₩#,##0.0B"]' data-sheets-formula="=R[-7]C[0]*R9C[0]/1000000000">₩14.6B</td>
</tr>
<tr><td colspan="5" rowspan="1" style="width: 723.636px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

The KRX has just released the base prices of the four re-listings from the LG Corp spinoff scheduled for May 27.
For your information, we have two regulatory filing websites: 1. DART (operated by the Korea Financial Supervisory Service) and 2. KIND (operated by the KRX). This kind of corporate action filings is only published at the KIND.  Following are the links to the regulatory filings at the KIND.

LG Corp
LG Corp 1P
LX Holdings
LX Holdings 1P

Base pricesThe base prices of all four companies haven't changed from the previous closing prices on April 28. It means that the updated split ratio based on the most recent financials (1Q21) was pretty much the same as the previously calculated split ratio based on the 3Q20 financials.









Base prices
LG Corp
LG Corp 1P
LX Holdings
LX Holdings 1P


Ticker
003550
003555
383800
383805


Base price
₩126,500
₩99,500
₩25,300
₩19,900


Ceiling price at the opening (base price x 2)
₩253,000
₩199,000
₩50,600
₩39,800


Floor price at the opening (base price x 0.5)
₩63,300
₩49,750
₩12,650
₩9,950

Source: KRX

Base price calculation:
A = Market cap at the previous close on April 28
B = Updated split ratio based on the most recent financials (1Q21)
C = Total shares based on the previous split ratio calculated with the 3Q20 financials
Base price for each company = A × B / C
Market capsLG Corp can begin tomorrow as low as ₩9.95T or as high as ₩39.80T. LG Corp opens at a range of ₩150.3~601.3B. LX Holdings can greet its shareholders at a market cap as low as ₩0.97T or as high as ₩3.86T. Lastly, LX Holdings 1P will begin at a range of ₩14.6~58.3B.









Market caps
LG Corp
LG Corp 1P
LX Holdings
LX Holdings 1P


Shares outstanding
157,300,993
3,021,620
76,280,690
1,465,285


Base price
₩19,898.6B
₩300.7B
₩1,929.9B
₩29.2B


Ceiling price at the opening (base price x 2)
₩39,797.2B
₩601.3B
₩3,859.8B
₩58.3B


Floor price at the opening (base price x 0.5)
₩9,957.2B
₩150.3B
₩965.0B
₩14.6B

Source: KRX



LG Corp/LX Holdings: Official Base Prices & Index Calculation Timeline & Treatment Clarification

South Korea

LX Holdings Corp operates as an investment holding company. The company operates coal and mine supply business. LX Holdings also invests in combines heat and power hydroelectric plants.

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

LX Holdings (383800 KS)

Naver Corp (035420 KS): Soaring in to the Big League

Naver Corp has seen a rapid rise in ownership among global EM investors. Naver Corp now sits among the big players in the sector, just behind...

Steven Holden

LG Corp: Major Shareholder Stock Swap Situation Checkup

This post discusses the current LG Corp's stake swap situation between the major shareholder family members, which is the last remaining step in...

Sanghyun Park

KOSPI200 Index Rebalance Preview: Focus Shifts to December After a Fantastic June Review

We see 1 potential change in September and 3 potential changes at the KOSPI200 December review. Post the excellent returns at the June rebalance,...

Brian Freitas

LG Corp: Block Deal Concern Causes an Even Harsher Correction

This post looks into the block deal concern and how it leads to an even harsher price correction to LG Corp in the last three trading sessions.

Sanghyun Park

LG Corp/LX Holdings: Official Base Prices & Index Calculation Timeline & Treatment Clarification

This post has the official base prices for LG Corp/LX Holdings relisting and clarifies the index calculation timeline and treatment, including...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)