Founder/CEO of ROK Advisory, ROK Advisory LLC

Ken S. Kim

Founder/CEO of ROK Advisory

ROK Advisory LLC

ROK is an independent research advisory firm. We guide you to minimize the information gap between foreign and local investors in Northeast Asia with a focus in Korea, Taiwan and Japan.

Independent Research Advisory Firm

Equity Bottom-Up

<p>In Korea the safest way to invest is to align your interest as a minority shareholder with those of the family?  Usually the key asset of the chaebol is apparent but what about SK Group? It seems we have an opportunity to hone in what the key asset is.</p>

In Korea the safest way to invest is to align your interest as a minority shareholder with those of the family?  Usually the key asset of the chaebol is apparent but what about SK Group? It seems we have an opportunity to hone in what the key asset is.

The Chaebol Dilemma - What's the Family Jewel(S)?

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 April 30 tax report/payment deadline is around the corner.</p><p>The Samsung Lee family must report all of the inheritance tax to the local tax authorities by April 30.</p><p>They are also obligated to pay at least one-sixth of the total by then if they opt for a 5-year grace period option, which is very likely at this point.</p><p>So, it works like this:</p><ul>
<li><strong>One-sixth by April 30</strong></li>
<li><strong>The reminder (five-sixth) in 5 annual installments (an equal one-sixth) at an interest rate of 1.8% per annum</strong></li>
</ul><hr><div class="content-highlight"><h2>Tax amount estimations</h2></div><div><p>Inheritance tax on listed company equity is calculated based on the average of 4-month daily closing prices: 2 months before and 2 months after the passing. The calculation period is August 25 to December 25.</p></div><div><p>At the 2M average prices, it comes at ₩19.1T.</p></div><table class="table table-striped">
<colgroup>
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
<col width="100">
</colgroup>
<tbody>
<tr>
<td style="width: 212.5px;" data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;Lee Kun-hee's shareholding (₩B)&quot;}">Lee Kun-hee's shareholding (₩B)</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":2,"2":"Shares"}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>Shares</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"%"}'>%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":2,"2":"Aug 25~Dec 25"}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}'>60D avg price on Aug 25~Dec 25</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"Value (₩B)"}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}'>Value (₩B)</td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Electronics Co Ltd</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"005930"}' data-sheets-formula='="005930"'>005930</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":249273200}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>249,273,200</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.04175582576286636}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>4.18%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":62789.28571428572}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩62,789</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":15651.686175714287}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>15,651.7</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung Electronics Co Ltd Preference Shares Non Voting"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Electronics Co Ltd Preference Shares Non Voting</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"005935"}' data-sheets-formula='="005935"'>005935</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":619900}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>619,900</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.0007533236349548485}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>0.08%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":56154.166666666664}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩56,154</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":34.809967916666665}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>34.8</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung Life Insurance co., Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung Life Insurance co., Ltd</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"032830"}' data-sheets-formula='="032830"'>032830</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":41519180}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>41,519,180</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.2075959}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>20.76%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":66707.14285714286}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩66,707</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":2769.625871571429}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>2,769.6</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung C&amp;T Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung C&amp;T Corp</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"028260"}' data-sheets-formula='="028260"'>028260</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":5425733}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>5,425,733</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.029032145887066426}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>2.90%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":115208.33333333333}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩115,208</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":625.0896560416667}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>625.1</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":"Samsung SDS Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Samsung SDS Co Ltd</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"018260"}' data-sheets-formula='="018260"'>018260</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":3,"3":9701}' data-sheets-numberformat='{"1":2,"2":"#,##0"}'>9,701</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":0.0001253718766881457}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[-1]/googlefinance(R[0]C[-2], "shares")'>0.01%</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":3,"3":173345.2380952381}' data-sheets-numberformat='{"1":4,"2":"[$₩]#,##0","3":1}' data-sheets-formula='=average(index(googlefinance(R[0]C[-3], "price", today()-236, today()-111), 0, 2))'><strong>₩173,345</strong></td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":1.681622154761905}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=R[0]C[-1]*R[0]C[-3]/1000000000"><strong>1.7</strong></td>
</tr>
<tr>
<td style="width: 212.5px;" data-sheets-value='{"1":2,"2":" - Total"}'>- Total</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 79.1667px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 94.1667px;" data-sheets-value='{"1":2,"2":"-"}'>-</td>
<td style="text-align: right; width: 77.5px;" data-sheets-value='{"1":3,"3":19082.89329339881}' data-sheets-numberformat='{"1":2,"2":"#,##0.0","3":1}' data-sheets-formula="=sum(R[-5]C[0]:R[-1]C[0])"><strong>19,082.9</strong></td>
</tr>
<tr><td colspan="6" rowspan="1" style="width: 722.5px;" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>The late Lee's artwork collection is estimated at ₩2.8T, and his other assets (real-estates and cash) are valued at ₩2T.</p><p>All combined, the total gross taxable amount comes at ₩23.9T, which then spits out a total inheritance tax of ₩12T after deductibles and extra charges at a 60% tax rate.</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":"Inheritance tax (₩B)"}'>Inheritance tax (₩B)</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total shareholding value"}'><strong>Total shareholding value</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":19082.89329339881}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-4]C[4]"><strong>19,082.89</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Art works"}'><strong>Artworks</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2800}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'><strong>2,800.00</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Real-estates &amp; cash"}'><strong>Real-estates &amp; cash</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2000}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}'><strong>2,000.00</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total gross taxable"}'><strong>Total gross taxable</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":23882.89329339881}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=sum(R[-3]C[0]:R[-1]C[0])"><strong>23,882.89</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Taxable after various deductibles (70%)"}'>Taxable after various deductibles (70%)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":16718.025305379168}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-1]C[0]*0.7">16,718.03</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"20% extra charge (management premium)"}'>20% extra charge (management premium)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20061.630366455}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-1]C[0]*1.2">20,061.63</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Inheritance tax at a 60% tax rate"}'><strong>Inheritance tax at a 60% tax rate</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12036.978219872999}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-1]C[0]*0.6"><strong>12,036.98</strong></td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX FIND, Chosun, &amp; Korean NTS"}'>Source: KRX FIND, Chosun, &amp; Korean NTS</td></tr>
</tbody>
</table><p>Unless specified in the will, the inheritance will go at a 1/3 (spouse) to 2/3/N (each child) ratio.</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":"Inheritance tax burden for each family member (₩B)"}'>The inheritance tax burden for each family member (₩B)</td></tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Inheritance tax at a 60% tax rate"}'>Total Inheritance tax</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":12036.978219872999}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=R[-4]C[0]">12,036.98</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lee JY (oldest)"}'> - Lee JY (oldest)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2674.884048860666}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=2/3*R21C2/3">2,674.88</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lee Bu-jin (second)"}'> - Lee Bu-jin (second)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2674.884048860666}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=2/3*R21C2/3">2,674.88</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lee Seo-hyun (third)"}'> - Lee Seo-hyun (third)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":2674.884048860666}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=2/3*R21C2/3">2,674.88</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hong Ra-hee(spouse)"}'> - Hong Ra-hee (spouse)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":4012.3260732909994}' data-sheets-numberformat='{"1":2,"2":"#,##0.00","3":1}' data-sheets-formula="=1/3*R[-4]C[0]">4,012.33</td>
</tr>
<tr><td colspan="2" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX FIND &amp; Korean NTS"}'>Source: KRX FIND &amp; Korean NTS</td></tr>
</tbody>
</table>

The April 30 tax report/payment deadline is around the corner.The Samsung Lee family must report all of the inheritance tax to the local tax authorities by April 30.They are also obligated to pay at least one-sixth of the total by then if they opt for a 5-year grace period option, which is very likely at this point.So, it works like this:
One-sixth by April 30
The reminder (five-sixth) in 5 annual installments (an equal one-sixth) at an interest rate of 1.8% per annum
Tax amount estimationsInheritance tax on listed company equity is calculated based on the average of 4-month daily closing prices: 2 months before and 2 months after the passing. The calculation period is August 25 to December 25.At the 2M average prices, it comes at ₩19.1T.










Lee Kun-hee's shareholding (₩B)
Ticker
Shares
%
60D avg price on Aug 25~Dec 25
Value (₩B)


Samsung Electronics Co Ltd
005930
249,273,200
4.18%
₩62,789
15,651.7


Samsung Electronics Co Ltd Preference Shares Non Voting
005935
619,900
0.08%
₩56,154
34.8


Samsung Life Insurance co., Ltd
032830
41,519,180
20.76%
₩66,707
2,769.6


Samsung C&amp;T Corp
028260
5,425,733
2.90%
₩115,208
625.1


Samsung SDS Co Ltd
018260
9,701
0.01%
₩173,345
1.7


- Total
-
-
-
-
19,082.9

Source: KRX

The late Lee's artwork collection is estimated at ₩2.8T, and his other assets (real-estates and cash) are valued at ₩2T.All combined, the total gross taxable amount comes at ₩23.9T, which then spits out a total inheritance tax of ₩12T after deductibles and extra charges at a 60% tax rate.





Inheritance tax (₩B)

Total shareholding value
19,082.89


Artworks
2,800.00


Real-estates &amp; cash
2,000.00


Total gross taxable
23,882.89


Taxable after various deductibles (70%)
16,718.03


20% extra charge (management premium)
20,061.63


Inheritance tax at a 60% tax rate
12,036.98

Source: KRX FIND, Chosun, &amp; Korean NTS

Unless specified in the will, the inheritance will go at a 1/3 (spouse) to 2/3/N (each child) ratio.





The inheritance tax burden for each family member (₩B)

Total Inheritance tax
12,036.98


 - Lee JY (oldest)
2,674.88


 - Lee Bu-jin (second)
2,674.88


 - Lee Seo-hyun (third)
2,674.88


 - Hong Ra-hee (spouse)
4,012.33

Source: KRX FIND &amp; Korean NTS



Samsung Inheritance Tax Event: Why Market Being Bearish on Samsung Electronics?

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

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Quantitative Analysis

<div><p>The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.</p></div><div><p>Hong Kong saw shorts rise on <a href="https://www.smartkarma.com/entities/meituan-dianping" target="_blank" data-smartkarma-citation="entities:26970:1" rel="noopener">Meituan (3690 HK)</a>, <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, <a href="https://www.smartkarma.com/entities/haidilao-international-holding-ltd" target="_blank" data-smartkarma-citation="entities:27044:1" rel="noopener">Haidilao (6862 HK)</a>, <a href="https://www.smartkarma.com/entities/yihai-int-l-holding-ltd" target="_blank" data-smartkarma-citation="entities:22803:1" rel="noopener">Yihai Int’L Holding (1579 HK)</a> and <a href="https://www.smartkarma.com/entities/sunny-optical-tech" target="_blank" data-smartkarma-citation="entities:13363:1" rel="noopener">Sunny Optical (2382 HK)</a> while there was short covering on <a href="https://www.smartkarma.com/entities/tencent-holdings-ltd" target="_blank" data-smartkarma-citation="entities:26:1" rel="noopener">Tencent Holdings (700 HK)</a>, <a href="https://www.smartkarma.com/entities/ping-an-insurance-grp-co-of-china-ltd" target="_blank" data-smartkarma-citation="entities:12880:1" rel="noopener">Ping An Insurance (H) (2318 HK)</a>, <a href="https://www.smartkarma.com/entities/country-garden-services-holdings-company-limited" target="_blank" data-smartkarma-citation="entities:27343:1" rel="noopener">Country Garden Services Holdings (6098 HK)</a>, <a href="https://www.smartkarma.com/entities/baidu-inc-a55ca720-5968-48f0-8194-ac94390d065c" target="_blank" data-smartkarma-citation="entities:32212:1" rel="noopener">Baidu (9888 HK)</a> and <a href="https://www.smartkarma.com/entities/zhongsheng-group-holdings" target="_blank" data-smartkarma-citation="entities:10573:1" rel="noopener">Zhongsheng Group (881 HK)</a>. Shorts increased in the Consumer Discretionary, Health Care and Information Technology sectors, and decreased in the Communication Services and Financials sectors.</p></div><div><p>In Japan, stocks that saw the most shorts were <a href="https://www.smartkarma.com/entities/nexon-co-ltd" target="_blank" data-smartkarma-citation="entities:16032:1" rel="noopener">Nexon (3659 JP)</a>, <a href="https://www.smartkarma.com/entities/orix-corp" target="_blank" data-smartkarma-citation="entities:9936:1" rel="noopener">Orix Corp (8591 JP)</a>, <a href="https://www.smartkarma.com/entities/toshiba-corp" target="_blank" data-smartkarma-citation="entities:637:1" rel="noopener">Toshiba Corp (6502 JP)</a> and <a href="https://www.smartkarma.com/entities/hitachi-metals-ltd" target="_blank" data-smartkarma-citation="entities:8561:1" rel="noopener">Hitachi Metals (5486 JP)</a> while shorts decreased on <a href="https://www.smartkarma.com/entities/shiseido-company-limited" target="_blank" data-smartkarma-citation="entities:5718:1" rel="noopener">Shiseido Company (4911 JP)</a>, <a href="https://www.smartkarma.com/entities/tokai-carbon-co-ltd" target="_blank" data-smartkarma-citation="entities:9145:1" rel="noopener">Tokai Carbon (5301 JP)</a>, <a href="https://www.smartkarma.com/entities/yaskawa-electric-corp" target="_blank" data-smartkarma-citation="entities:2458:1" rel="noopener">Yaskawa Electric (6506 JP)</a> and <a href="https://www.smartkarma.com/entities/canon-inc" target="_blank" data-smartkarma-citation="entities:1:1" rel="noopener">Canon Inc (7751 JP)</a>. Shorts increased in the Financials and Communication Services sectors, and decreased in the Information Technology and Consumer Staples sectors.</p></div><div><p>In Korea, shorts decreased on <a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics Co., (207940 KS)</a>, <a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a>, <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> and <a href="https://www.smartkarma.com/entities/samsung-sdi-co-ltd" target="_blank" data-smartkarma-citation="entities:503:1" rel="noopener">Samsung SDI (006400 KS)</a> during the week.</p></div><div><p>Stocks in Taiwan that saw the highest increase in shorts were <a href="https://www.smartkarma.com/entities/yageo-corporation" target="_blank" data-smartkarma-citation="entities:13212:1" rel="noopener">Yageo Corporation (2327 TT)</a>, <a href="https://www.smartkarma.com/entities/novatek-microelectronics-corp" target="_blank" data-smartkarma-citation="entities:10904:1" rel="noopener">Novatek Microelectronics Corp (3034 TT)</a>, <a href="https://www.smartkarma.com/entities/evergreen-marine-corp-ltd" target="_blank" data-smartkarma-citation="entities:15428:1" rel="noopener">Evergreen Marine Corp (2603 TT)</a>, <a href="https://www.smartkarma.com/entities/taiwan-semiconductor-manufacturing-company" target="_blank" data-smartkarma-citation="entities:11230:1" rel="noopener">TSMC (2330 TT)</a> and <a href="https://www.smartkarma.com/entities/fitipower-integrated-tech" target="_blank" data-smartkarma-citation="entities:8712:1" rel="noopener">Fitipower Integrated Tech (4961 TT)</a> while shorts were covered on <a href="https://www.smartkarma.com/entities/genius-electronic-optical-co-ltd" target="_blank" data-smartkarma-citation="entities:9632:1" rel="noopener">Genius Electronic Optical (3406 TT)</a>, <a href="https://www.smartkarma.com/entities/hannstar-display-corp" target="_blank" data-smartkarma-citation="entities:13922:1" rel="noopener">Hannstar Display (6116 TT)</a>, <a href="https://www.smartkarma.com/entities/taiwan-cement" target="_blank" data-smartkarma-citation="entities:19736:1" rel="noopener">Taiwan Cement (1101 TT)</a>, <a href="https://www.smartkarma.com/entities/focaltech-systems-co-ltd" target="_blank" data-smartkarma-citation="entities:11240:1" rel="noopener">Focaltech Systems (3545 TT)</a> and <a href="https://www.smartkarma.com/entities/winbond-electronics-corp" target="_blank" data-smartkarma-citation="entities:9177:1" rel="noopener">Winbond Electronics (2344 TT)</a>. </p></div>

The Asia Short Interest weekly looks at moves in market wide short interest and highlights movements in stock specific short interest across Hong Kong, Japan, Korea and Taiwan using the last available data published by the relevant authorities.Hong Kong saw shorts rise on Meituan (3690 HK), Wuxi Biologics (2269 HK), Haidilao (6862 HK), Yihai Int’L Holding (1579 HK) and Sunny Optical (2382 HK) while there was short covering on Tencent Holdings (700 HK), Ping An Insurance (H) (2318 HK), Country Garden Services Holdings (6098 HK), Baidu (9888 HK) and Zhongsheng Group (881 HK). Shorts increased in the Consumer Discretionary, Health Care and Information Technology sectors, and decreased in the Communication Services and Financials sectors.In Japan, stocks that saw the most shorts were Nexon (3659 JP), Orix Corp (8591 JP), Toshiba Corp (6502 JP) and Hitachi Metals (5486 JP) while shorts decreased on Shiseido Company (4911 JP), Tokai Carbon (5301 JP), Yaskawa Electric (6506 JP) and Canon Inc (7751 JP). Shorts increased in the Financials and Communication Services sectors, and decreased in the Information Technology and Consumer Staples sectors.In Korea, shorts decreased on Samsung Biologics Co., (207940 KS), Samsung Electronics (005930 KS), Celltrion Inc (068270 KS) and Samsung SDI (006400 KS) during the week.Stocks in Taiwan that saw the highest increase in shorts were Yageo Corporation (2327 TT), Novatek Microelectronics Corp (3034 TT), Evergreen Marine Corp (2603 TT), TSMC (2330 TT) and Fitipower Integrated Tech (4961 TT) while shorts were covered on Genius Electronic Optical (3406 TT), Hannstar Display (6116 TT), Taiwan Cement (1101 TT), Focaltech Systems (3545 TT) and Winbond Electronics (2344 TT). 

Asia Short Interest: Meituan, WuxiBio, Tencent, Nexon, Orix, Toshiba, Shiseido, Samsung, Hannstar

President, Vision Research

Robert C Prather Jr

President

Vision Research

Vision Research was formed in 2004 with the vision of generating the best possible fundamental analysis and investment research for smid cap US equities. In 2008, we broadened our coverage to include mid/large cap US stocks.  After researching a  few ideas outside the US each year for a number of years, we launched a dedicated non-US equity product at the end of 2015.  This was followed by the introduction of a product focused on IPOs in mid-2017.

Fundamental Insight

<p><a href="https://www.smartkarma.com/entities/samsung-electronics-co-ltd" target="_blank" data-smartkarma-citation="entities:191:1" rel="noopener">Samsung Electronics (005930 KS)</a> , <a href="https://www.smartkarma.com/entities/lg-electronics-inc" target="_blank" data-smartkarma-citation="entities:8814:1" rel="noopener">LG Electronics (066570 KS)</a>, and <a href="https://www.smartkarma.com/entities/haier-electronics-group-co" target="_blank" data-smartkarma-citation="entities:4877:1" rel="noopener">Haier Electronics Group Co (1169 HK)</a> were stealing share from <a href="https://www.smartkarma.com/entities/electrolux-ab" target="_blank" data-smartkarma-citation="entities:22351:1" rel="noopener">Electrolux AB (ELUXB SS)</a> prior to the pandemic.  After pandemic induced demand surge subsides, Vision expects these market share headwinds to revive while <a href="https://www.smartkarma.com/entities/electrolux-ab" target="_blank" data-smartkarma-citation="entities:22351:1" rel="noopener">Electrolux AB (ELUXB SS)</a> faces difficult comparisons leading to weak top line growth and rising commodity costs weigh on profits.</p>

Samsung Electronics (005930 KS) , LG Electronics (066570 KS), and Haier Electronics Group Co (1169 HK) were stealing share from Electrolux AB (ELUXB SS) prior to the pandemic.  After pandemic induced demand surge subsides, Vision expects these market share headwinds to revive while Electrolux AB (ELUXB SS) faces difficult comparisons leading to weak top line growth and rising commodity costs weigh on profits.

Electrolux (ELUXB SS): Asian Competitors, Difficult Comps, & Rising Commodity Costs Create Headwinds

<p>Samsung's huge special dividend (+ quarterly div) for FY2020 comes on April 16.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="80">
<col width="80">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Special dividend"}'>Special dividend</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ord"}'>Ord</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"1P"}'>1P</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Div"}'>Div</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1932}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩1,932</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1933}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}'>₩1,933</td>
</tr>
<tr>
<td>- Quarterly</td>
<td style="text-align: right;">₩354</td>
<td style="text-align: right;">₩355</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":" - Special"}'>- Special</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1578}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}' data-sheets-formula="=R[-1]C[0]-354">₩1,578</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1578}' data-sheets-numberformat='{"1":4,"2":"[$₩-412]#,##0"}' data-sheets-formula="=R[-1]C[0]-355">₩1,578</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Payment date"}'><strong>Payment date</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":42481}' data-sheets-numberformat='{"1":5,"2":"yy/m/d","3":1}'><strong>16/4/21</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":42481}' data-sheets-numberformat='{"1":5,"2":"yy/m/d","3":1}'><strong>16/4/21</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Record date"}'>Record date</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11677}' data-sheets-numberformat='{"1":5,"2":"yy/m/d","3":1}'>31/12/20</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11677}' data-sheets-numberformat='{"1":5,"2":"yy/m/d","3":1}'>31/12/20</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Ex rights-1D"}'>Ex rights-1D</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":47107}' data-sheets-numberformat='{"1":5,"2":"yy/m/d","3":1}'>28/12/20</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":47107}' data-sheets-numberformat='{"1":5,"2":"yy/m/d","3":1}'>28/12/20</td>
</tr>
<tr><td colspan="3" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table><p>The total div amounts to ₩13.1T: 2.31% of the Ord SO and 2.57% of the 1P SO.</p><p>As a % of DTV, it is 7.6x for Ord and 13.6x for 1P.</p><p>Out of ₩13.1T, ₩7.7T (59%) will be going to the foreign shareholders.</p><table class="table table-striped">
<colgroup>
<col width="100">
<col width="80">
<col width="80">
</colgroup>
<tbody>
<tr>
<td data-sheets-value='{"1":2,"2":"Special dividend"}'>Special dividend</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ord"}'>Ord</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"1P"}'>1P</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SO"}'>SO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":5969782550}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance("005930", "shares")'>5,969,782,550</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":822886700}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}' data-sheets-formula='=googlefinance("005935", "shares")'>822,886,700</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total div (₩B)"}'>Total div (₩B)</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":11533.6198866}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[-1]C[0]*R[-25]C[0]/1000000000">11,533.6</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1590.6399911}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[-1]C[0]*R[-25]C[0]/1000000000">1,590.6</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"% of MC"}'><strong>% of MC</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.023137724550898204}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]*1000000000/(googlefinance("005930", "price")*googlefinance("005930", "shares"))'><strong>2.31%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.025773333333333332}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]*1000000000/(googlefinance("005935", "price")*googlefinance("005935", "shares"))'><strong>2.58%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"% of DTV"}'><strong>% of DTV</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":7.589329418866759}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-2]C[0]/(googlefinance("005930", "volumeavg")*googlefinance("005930", "price")/1000000000)'><strong>758.93%</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":13.577458461157631}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-2]C[0]/(googlefinance("005935", "volumeavg")*googlefinance("005935", "price")/1000000000)'><strong>1357.75%</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"FO"}'>FO</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5582}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>55.82%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.8204}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}'>82.04%</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"FO shares"}'>FO shares</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3332143450}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>3,332,143,450</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":675105949}' data-sheets-numberformat='{"1":2,"2":"#,##0","3":1}'>675,105,949</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Total div for FO (₩B)"}'><strong>Total div for FO (₩B)</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":6437.7011454}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[-30]C[0]*R[-1]C[0]/1000000000"><strong>6,437.7</strong></td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1304.979799417}' data-sheets-numberformat='{"1":2,"2":"#,##0.0"}' data-sheets-formula="=R[-30]C[0]*R[-1]C[0]/1000000000"><strong>1,305.0</strong></td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"% of MC"}'>% of MC</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.01291474466020201}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]*1000000000/(googlefinance("005930", "price")*googlefinance("005930", "shares"))'>1.29%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.02114474648684118}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[-1]C[0]*1000000000/(googlefinance("005935", "price")*googlefinance("005935", "shares"))'>2.11%</td>
</tr>
<tr><td colspan="3" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

Samsung's huge special dividend (+ quarterly div) for FY2020 comes on April 16.







Special dividend
Ord
1P


Div
₩1,932
₩1,933


- Quarterly
₩354
₩355


- Special
₩1,578
₩1,578


Payment date
16/4/21
16/4/21


Record date
31/12/20
31/12/20


Ex rights-1D
28/12/20
28/12/20

Source: KRX

The total div amounts to ₩13.1T: 2.31% of the Ord SO and 2.57% of the 1P SO.As a % of DTV, it is 7.6x for Ord and 13.6x for 1P.Out of ₩13.1T, ₩7.7T (59%) will be going to the foreign shareholders.







Special dividend
Ord
1P


SO
5,969,782,550
822,886,700


Total div (₩B)
11,533.6
1,590.6


% of MC
2.31%
2.58%


% of DTV
758.93%
1357.75%


FO
55.82%
82.04%


FO shares
3,332,143,450
675,105,949


Total div for FO (₩B)
6,437.7
1,305.0


% of MC
1.29%
2.11%

Source: KRX



Samsung Special Div Payment Event on April 16: What to Expect

South Korea

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.

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

Samsung Electronics (SMSN LI)

The Chaebol Dilemma - What's the Family Jewel(S)?

What is the key asset of the SK Group and how should we play this over the course of time ? Here's at least what we should consider

Ken S. Kim

Samsung Inheritance Tax Event: Why Market Being Bearish on Samsung Electronics?

Samsung Electronics stake sale by the major shareholder is gaining more attention as the inheritance tax payment deadline (April 30) is...

Sanghyun Park

Asia Short Interest: Meituan, WuxiBio, Tencent, Nexon, Orix, Toshiba, Shiseido, Samsung, Hannstar

The Insight looks at large short interest movements across HK, Japan, Korea and Taiwan stocks and highlights large increases/decreases in shorts to...

Brian Freitas

Electrolux (ELUXB SS): Asian Competitors, Difficult Comps, & Rising Commodity Costs Create Headwinds

Appliance manufacturer facing intense Asian competition causing weak organic revenue pre-COVID that should resume post-COVID. Difficult comps and...

Robert C Prather Jr

Samsung Special Div Payment Event on April 16: What to Expect

This post looks into Samsung's special dividend payment event on April 16 and assesses the dividend money's potential movements.

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)