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

<ul>
<li>The Dems are serious about the Commercial Act amendment, with Lee Jae-myung personally attending the policy forum to pitch the change directly to key business players.</li>
<li>Key takeaways: expanding directors' fiduciary duties to all shareholders and mandatory cumulative voting, which could empower minority shareholders and reignite value-up policies in Korean companies.</li>
<li>The Dems plan to fast-track the Commercial Act amendment by year-end, with implementation likely by Q2 next year, boosting market moves and reigniting the value-up trade ahead of May’s election.</li>
</ul>


The Dems are serious about the Commercial Act amendment, with Lee Jae-myung personally attending the policy forum to pitch the change directly to key business players.
Key takeaways: expanding directors' fiduciary duties to all shareholders and mandatory cumulative voting, which could empower minority shareholders and reignite value-up policies in Korean companies.
The Dems plan to fast-track the Commercial Act amendment by year-end, with implementation likely by Q2 next year, boosting market moves and reigniting the value-up trade ahead of May’s election.


Korean Dems Push for Commercial Act Amendment by Year-End: Game-Changer for Value-Up Trade

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Bottom-Up

<ul>
<li>NPS has filed a lawsuit against Samsung Group Chairman Lee Jae-Yong and others involved in the merger of Samsung C&amp;T (028260 KS) and Cheil Industries nearly nine years ago.</li>
<li>NPS is trying to recover damages estimated at up to 675 billion won. </li>
<li>If NPS is able to win in this lawsuit, it could result in other minority shareholders launching their own lawsuits which could further raise concerns on Samsung C&amp;T. </li>
</ul>


NPS has filed a lawsuit against Samsung Group Chairman Lee Jae-Yong and others involved in the merger of Samsung C&amp;T (028260 KS) and Cheil Industries nearly nine years ago.
NPS is trying to recover damages estimated at up to 675 billion won. 
If NPS is able to win in this lawsuit, it could result in other minority shareholders launching their own lawsuits which could further raise concerns on Samsung C&amp;T. 


<ul>
<li>We provide an updated NAV analysis of Samsung C&amp;T, discuss the reduced overhang post final Lee family inheritance tax payment, and also provide further details of its Corporate Value-Up announcement. </li>
<li>Given 2025 will be the last year of major inheritance tax payment for the Lee family, there is likely to be reduced overhang associated with inheritance tax issue next year.</li>
<li>Our NAV analysis of Samsung C&amp;T suggests NAV of 39.9 trillion won or NAV per share of 224,249 won which is 45% higher from current levels.</li>
</ul>


We provide an updated NAV analysis of Samsung C&amp;T, discuss the reduced overhang post final Lee family inheritance tax payment, and also provide further details of its Corporate Value-Up announcement. 
Given 2025 will be the last year of major inheritance tax payment for the Lee family, there is likely to be reduced overhang associated with inheritance tax issue next year.
Our NAV analysis of Samsung C&amp;T suggests NAV of 39.9 trillion won or NAV per share of 224,249 won which is 45% higher from current levels.


Samsung C&T: Corporate Value-Up + Reduced Overhang Post Final Lee Family Inheritance Tax in 2025

<ul>
<li>Construction and semiconductors are key targets due to their low value-up representation. For shareholder returns, keep an eye on Samsung C&amp;T and SK Square.</li>
<li>Expect announcements before the mid-September value-up index, with early September releases mirroring LG Electronics' prior notices and detailed plans arriving by Q4.</li>
<li>Even with prior notices, details will leak. Samsung C&amp;T and SK Square are likely to prioritize short-term shareholder returns over long-term growth, potentially leading to a bigger price impact.</li>
</ul>


Construction and semiconductors are key targets due to their low value-up representation. For shareholder returns, keep an eye on Samsung C&amp;T and SK Square.
Expect announcements before the mid-September value-up index, with early September releases mirroring LG Electronics' prior notices and detailed plans arriving by Q4.
Even with prior notices, details will leak. Samsung C&amp;T and SK Square are likely to prioritize short-term shareholder returns over long-term growth, potentially leading to a bigger price impact.


Keep an Eye on Samsung C&T & SK Square as the Next Hot Picks for Value-Up Announcements

<ul>
<li>Maximizing Lee Jae-yong's dividend income is crucial, making Samsung SDS's ₩5.5T cash assets key, thus prompting the merger of Samsung C&amp;T and Samsung SDS's BPO division.</li>
<li>With no legal risks for Lee Jae-yong, Samsung C&amp;T needs the merger to increase assets and avoid forced holding company conversion, making the acquisition of Samsung SDS’s BPO division necessary.</li>
<li>We should target a setup for likely appraisal rights for C&amp;T. Monitor and capture the spread between the stock price and appraisal rights exercise price.</li>
</ul>


Maximizing Lee Jae-yong's dividend income is crucial, making Samsung SDS's ₩5.5T cash assets key, thus prompting the merger of Samsung C&amp;T and Samsung SDS's BPO division.
With no legal risks for Lee Jae-yong, Samsung C&amp;T needs the merger to increase assets and avoid forced holding company conversion, making the acquisition of Samsung SDS’s BPO division necessary.
We should target a setup for likely appraisal rights for C&amp;T. Monitor and capture the spread between the stock price and appraisal rights exercise price.


Examining Market Interest in the Potential Samsung C&T and SDS Restructuring

South Korea

Samsung C&T Corporation conducts diversified business support services and resort operation activities. The Company offers a range of services in areas including clothing retail, construction, energy, real estate, food service, and resort accommodations. Samsung C&T also operates a resort with amusement rides, a zoo, water park, golf clubs, and restaurants.

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Samsung C&T (028260 KS)

Korean Dems Push for Commercial Act Amendment by Year-End: Game-Changer for Value-Up Trade

Korean democratic party is pushing to wrap up the Commercial Act amendment by year-end: This could spark a fresh turning point for the value-up trade.

Sanghyun Park

NPS Sues Samsung's Lee Jae-Yong

NPS has filed a lawsuit against Samsung Group Chairman Lee Jae-Yong and others involved in the merger of Samsung C&T (028260 KS) and Cheil...

Douglas Kim

Samsung C&T: Corporate Value-Up + Reduced Overhang Post Final Lee Family Inheritance Tax in 2025

We provide an updated NAV analysis of Samsung C&T, discuss the reduced overhang post final Lee family inheritance tax payment, and provide further...

Douglas Kim

Keep an Eye on Samsung C&T & SK Square as the Next Hot Picks for Value-Up Announcements

This post dives into the potential for Samsung C&T and SK Square to be the next big players in value-up announcements and explores the likely price...

Sanghyun Park

Examining Market Interest in the Potential Samsung C&T and SDS Restructuring

This post examines the growing market interest and trading angles in the potential restructuring involving Samsung C&T and Samsung SDS.

Sanghyun Park

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