Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Cross Asset Strategy

<ul>
<li>In this insight, we provide an evidenced based analysis of Bank of Korea (BOK) base interest rate changes and Korean banks' share price performances from August 2008 to February 2022.</li>
<li>Specifically, we compare the average share price performances of five major banking groups in Korea (KB, Shinhan, Hana, Woori, and Woori) versus KOSPI in six different time periods.</li>
<li>The major Korean banking groups generally outperformed the market in periods of rising interest rates and underperformed the market in periods of falling interest rates.</li>
</ul>


In this insight, we provide an evidenced based analysis of Bank of Korea (BOK) base interest rate changes and Korean banks' share price performances from August 2008 to February 2022.
Specifically, we compare the average share price performances of five major banking groups in Korea (KB, Shinhan, Hana, Woori, and Woori) versus KOSPI in six different time periods.
The major Korean banking groups generally outperformed the market in periods of rising interest rates and underperformed the market in periods of falling interest rates.


Evidenced Based Analysis of BOK Base Interest Rate Changes & Korean Banks' Share Price Performances

Equity Capital Markets

Woori Financial Group  / Equity Capital Markets

<ul>
<li>Korea Deposit Insurance Corp (KDIC) is trying to conduct a block deal sale of its stake in Woori Financial Group which could reach as high as 340 billion won.</li>
<li>KDIC plans to sell 7.28 million to 21.84 million shares of Woori Financial Group in a block deal, which represents 1% to 3% of total shares of the company.</li>
<li>The block deal price range offered to the institutional investors is from 15,084 won to 15,550 won. We would take the deal even at little discount. </li>
</ul>


Korea Deposit Insurance Corp (KDIC) is trying to conduct a block deal sale of its stake in Woori Financial Group which could reach as high as 340 billion won.
KDIC plans to sell 7.28 million to 21.84 million shares of Woori Financial Group in a block deal, which represents 1% to 3% of total shares of the company.
The block deal price range offered to the institutional investors is from 15,084 won to 15,550 won. We would take the deal even at little discount. 


Block Deal Sale of Woori Financial Group by KDIC

Quantitative Analysis

<ul>
<li>In this insight, we provide the recent trends of the ETF market size growth as well as the breakdown of the best performing sector/thematic ETFs in Korea.</li>
<li>The ETFs daily transaction value as a percentage of KOSPI daily transaction value was 1.1% in 2002, which increased to 11.3% in 2012 and 31.5% in 2020.</li>
<li>The banks and dividends related ETFs have been clear winners YTD.</li>
</ul>


In this insight, we provide the recent trends of the ETF market size growth as well as the breakdown of the best performing sector/thematic ETFs in Korea.
The ETFs daily transaction value as a percentage of KOSPI daily transaction value was 1.1% in 2002, which increased to 11.3% in 2012 and 31.5% in 2020.
The banks and dividends related ETFs have been clear winners YTD.


ETF Market Growth in Korea & Breakdown of the Best Performing Sector/Thematic ETFs in Korea YTD

Equity Bottom-Up

<ul>
<li>KT Corp (030200 KS) is expected to have a solid, near 6% dividend yield in 2022.</li>
<li>KT's partnership with Shinhan Bank is a strategy to accelerate KT's transformation in the digital business.</li>
<li>KT is currently trading at 0.5x P/B, which is at a steep discount to its liquidation value.</li>
</ul>


KT Corp (030200 KS) is expected to have a solid, near 6% dividend yield in 2022.
KT's partnership with Shinhan Bank is a strategy to accelerate KT's transformation in the digital business.
KT is currently trading at 0.5x P/B, which is at a steep discount to its liquidation value.


KT Corp: Near 6% Dividend Yield, Stock Swap with Shinhan Bank, IPO of K-Bank, & Shift to Value

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

Below is the lockup release schedule and volume of noteworthy KOSPI stocks from this week to the end of next month.<div class="content-highlight">This time around, there are quite a few stocks with significant volume releases among the top stocks by market cap. These are the large-cap stocks (a market cap of ₩10T or higher) that deserve our special attention:</div><ul>
<li><a href="https://www.smartkarma.com/entities/shinhan-financial-group-ltd" target="_blank" data-smartkarma-citation="entities:6978:1" rel="noopener">Shinhan Financial (055550 KS)</a></li>
<li><a href="https://www.smartkarma.com/entities/kakaobank-corp" target="_blank" data-smartkarma-citation="entities:33501:1" rel="noopener">KakaoBank (323410 KS)</a></li>
<li>
<a href="https://www.smartkarma.com/entities/krafton-inc" target="_blank" data-smartkarma-citation="entities:28956:1" rel="noopener"> Krafton Inc (259960 KS)</a> </li>
<li>
<a href="https://www.smartkarma.com/entities/sk-ie-technology" target="_blank" data-smartkarma-citation="entities:29207:1" rel="noopener">SK IE Technology (361610 KS)</a> </li>
</ul><table class="table table-striped">
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<tr>
<td data-sheets-value='{"1":2,"2":"Major lockup releases"}'>Major lockup releases</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Release date"}'>Release date</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"% of SO"}'>% of SO</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"Market cap"}'>Market cap</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK Rent A Car"}'>SK Rent A Car</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"068400"}' data-sheets-formula='="068400"'>068400</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44488}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 10. 19</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.24362472994029502}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>24.36%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.572158664}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩0.57T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Shinhan Financial Group"}'>Shinhan Financial Group</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"055550"}' data-sheets-formula='="055550"'>055550</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44489}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 10. 20</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.07574532284632983}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>7.57%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":20.147382606}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩20.15T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kakao Bank"}'>Kakao Bank</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":323410}'>323410</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44506}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 11. 08</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.03207744137580803}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>4.27%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":28.5535242437}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩28.55T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Lotte Chilsung Beverage"}'>Lotte Chilsung Beverage</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"005300"}' data-sheets-formula='="005300"'>005300</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44509}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 11. 09</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.1056161495283269}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>10.56%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":1.456784788}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩1.46T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Krafton"}'>Krafton</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":259960}'>259960</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44510}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 11. 10</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.05515669660006972}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>8.27%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":23.1295577625}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩23.13T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"SK IE Technology"}'>SK IE Technology</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":361610}'>361610</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44511}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 11. 11</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.7000236417521647}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>70.00%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":13.796084052}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩13.80T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Kyung Dong Navien"}'>Kyung Dong Navien</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"009450"}' data-sheets-formula='="009450"'>009450</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44517}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 11. 17</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.06394834737624341}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>6.39%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.889749342}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩0.89T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Hanjin Transportation"}'>Hanjin Transportation</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"002320"}' data-sheets-formula='="002320"'>002320</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44519}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 11. 19</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.03947114552221931}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>3.95%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.5291460312}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩0.53T</td>
</tr>
<tr>
<td data-sheets-value='{"1":2,"2":"Meritz Fire &amp; Marine Insurance Co Ltd"}'>Meritz Fire &amp; Marine Insurance</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"000060"}' data-sheets-formula='="000060"'>000060</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44527}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 11. 27</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.05761658031088083}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>5.76%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":3.50415625}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩3.50T</td>
</tr>
<tr>
<td data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;T'way Air Co Ltd&quot;}">T'way Air</td>
<td style="text-align: right;" data-sheets-value='{"1":2,"2":"091810"}' data-sheets-formula='="091810"'>091810</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":44528}' data-sheets-numberformat='{"1":5,"2":"yyyy\". \"mm\". \"dd","3":1}'>2021. 11. 28</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.016133377130316148}' data-sheets-numberformat='{"1":3,"2":"0.00%","3":1}' data-sheets-formula='=R[0]C[2]/googlefinance(R[0]C[-2], "shares")'>1.61%</td>
<td style="text-align: right;" data-sheets-value='{"1":3,"3":0.44021781321}' data-sheets-numberformat='{"1":2,"2":"₩#,##0.00T","3":1}' data-sheets-formula='=googlefinance(R[0]C[-3], "price")*googlefinance(R[0]C[-3], "shares")/1000000000000'>₩0.44T</td>
</tr>
<tr><td colspan="5" rowspan="1" data-sheets-value='{"1":2,"2":"Source: KRX"}'>Source: KRX</td></tr>
</tbody>
</table>

Below is the lockup release schedule and volume of noteworthy KOSPI stocks from this week to the end of next month.This time around, there are quite a few stocks with significant volume releases among the top stocks by market cap. These are the large-cap stocks (a market cap of ₩10T or higher) that deserve our special attention:
Shinhan Financial (055550 KS)
KakaoBank (323410 KS)

 Krafton Inc (259960 KS) 

SK IE Technology (361610 KS) 










Major lockup releases
Ticker
Release date
% of SO
Market cap


SK Rent A Car
068400
2021. 10. 19
24.36%
₩0.57T


Shinhan Financial Group
055550
2021. 10. 20
7.57%
₩20.15T


Kakao Bank
323410
2021. 11. 08
4.27%
₩28.55T


Lotte Chilsung Beverage
005300
2021. 11. 09
10.56%
₩1.46T


Krafton
259960
2021. 11. 10
8.27%
₩23.13T


SK IE Technology
361610
2021. 11. 11
70.00%
₩13.80T


Kyung Dong Navien
009450
2021. 11. 17
6.39%
₩0.89T


Hanjin Transportation
002320
2021. 11. 19
3.95%
₩0.53T


Meritz Fire &amp; Marine Insurance
000060
2021. 11. 27
5.76%
₩3.50T


T'way Air
091810
2021. 11. 28
1.61%
₩0.44T

Source: KRX



KOSPI Major Lockup Releases: Kakao Bank, Krafton, SKIET, & Shinhan Financial

South Korea

KB Financial Group Inc. (the "Company"), in accordance with Financial Holding Companies Act, was established on September 29, 2008, through stock transfer with the former shareholders of its subsidiaries including Kookmin Bank in order to provide management services and financing to associated companies. The headquarters are located at Seoul, Korea

Hana Financial Group Inc., in accordance with Financial Holding Companies Act, was established on December 1, 2005, through stock transfer with the former shareholders of its subsidiaries in order to provide management services and financing to associated companies.

Industrial Bank of Korea(IBK) is a policy bank providing development finance and related banking services to support small and medium-sized enterprises in Korea. The Bank provides loans, discount bills, trade finance, deposits, foreign exchange, and payment guarantees. The company also offers services such as credit cards, insurance and smart-phone banking.

Woori Financial Group Inc. provides commercial banking services. The Company offers deposit services, loan services, bill services, settlement services, credit card, international, online banking, and other related services. Woori Financial Group also operates banking and retail banking businesses.

BNK Financial Group Inc. a holding company, provides a full range of consumer and commercial banking-related financial services. The Company's main businesses include banking, trust banking, and assets management to individuals, businesses, and other financial institutions.

JB Financial Group Co. Ltd., a holding company, provides a full range of consumer and commercial banking-related financial services.

DGB Financial Group Inc., a financial holding company, provides a full range of consumer and commercial banking-related financial services.  The Company operates and controls its financial subsidiaries such as Daegu Bank, Daegu Credit Information, and DBG Capital.

Jeju Bank is a regional commercial bank that provides banking, foreign exchange, trust account, and other related retail banking services.

Pureun Mutual Savings Bank provides financial services, such as loans, deposits, savings accounts, bills discounts, installment accounts, and foreign exchange.

Hang Seng Bank Limited and its subsidiaries provide banking and related financial services.

CIMB Group Holdings Berhad provides commercial banking and related financial services. The Company and its subsidiaries, operate as a regional universal bank offering a full range of financial products and services, covering corporate and investment banking, consumer banking, treasury, insurance and asset management.

Standard Chartered PLC is an international banking group operating principally in Asia, Africa, and the Middle East. The Company offers its products and services in the personal, consumer, corporate, institutional and treasury areas.

CTBC Financial Holding Company Ltd. is a holding company.  Through its subsidiaries, the Company provides a variety of banking and financial services, including deposit, loan, guarantee, international banking, trust banking, credit card, investment banking, safety deposit box, and Internet banking services.

Punjab National Bank provides financial services such as corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. The Company provides services to domestic conglomerates, medium and small industrial units, exporters, non-resident Indians and multinational companies.

Bank of Baroda owns and operates commercial banks in India.  The Group's banks provide the traditional forms of banking services, including CD's, Credit Card services and a variety of car loans, in addition to gold banking and a range of insurance services.  The Group also owns IBU International Finance Limited, an international banking company in Hong Kong.

Public Bank Berhad provides a range of banking and financial services which include leasing and factoring, stock and futures broking, financing for the purchase of licensed public vehicles, and other financial services. The Group's overseas operations include branches in Hong Kong, Sri Lanka, Laos, Cambodia, and Vietnam.

Malayan Banking Berhad operates as a bank. The Company provides financial services such as insurance, asset management, stock broking, nominee services, venture capital, leasing, and Internet banking. Malayan Banking Berhad serves customers in South East Asia.

Bank of Nanjing Co., Ltd. operates commercial banking businesses. The Company offers deposits, loans, settlement, discounting, financial bond issuance, government bond underwriting, bank guarantee, and other related financial services. Bank of Nanjing provides services for enterprises and individuals.

E.Sun Financial Holding Company Ltd. is a holding company.  Through its subsidiaries, the Company provides banking, brokerage and dealer services.

Shinhan Financial Group Co., Ltd., a holding company, provides a full range of consumer and commercial banking-related financial services.  The company's main businesses include banking, securities brokerage, trust banking, and assets management to individuals, businesses, and other financial institutions.

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

Shinhan Financial (055550 KS)

Block Deal Sale of Woori Financial Group by KDIC

KDIC is trying to conduct a block deal sale of its stake in Woori Financial Group which could reach as high as 340 billion won. We would take the...

Douglas Kim

ETF Market Growth in Korea & Breakdown of the Best Performing Sector/Thematic ETFs in Korea YTD

In this insight, we provide the recent trends of the ETF market size growth as well as the breakdown of the best performing sector/thematic ETFs in...

Douglas Kim

KT Corp: Near 6% Dividend Yield, Stock Swap with Shinhan Bank, IPO of K-Bank, & Shift to Value

We discuss major catalysts/investment highlights of KT including near 6% dividend yield, recent stock swap with Shinhan Bank, shift to value,...

Douglas Kim

KOSPI Major Lockup Releases: Kakao Bank, Krafton, SKIET, & Shinhan Financial

This post contains the lockup release schedule and volume of KOSPI stocks from this week to next month. These four stocks deserve special...

Sanghyun Park

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Evidenced Based Analysis of BOK Base Interest Rate Changes & Korean Banks' Share Price Performances

In this insight, we provide an evidenced based analysis of Bank of Korea (BOK) base interest rate changes and Korean banks' share price...

Douglas Kim

Block Deal Sale of Woori Financial Group by KDIC

KDIC is trying to conduct a block deal sale of its stake in Woori Financial Group which could reach as high as 340 billion won. We would take the...

Douglas Kim

ETF Market Growth in Korea & Breakdown of the Best Performing Sector/Thematic ETFs in Korea YTD

In this insight, we provide the recent trends of the ETF market size growth as well as the breakdown of the best performing sector/thematic ETFs in...

Douglas Kim

KT Corp: Near 6% Dividend Yield, Stock Swap with Shinhan Bank, IPO of K-Bank, & Shift to Value

We discuss major catalysts/investment highlights of KT including near 6% dividend yield, recent stock swap with Shinhan Bank, shift to value,...

Douglas Kim

KOSPI Major Lockup Releases: Kakao Bank, Krafton, SKIET, & Shinhan Financial

This post contains the lockup release schedule and volume of KOSPI stocks from this week to next month. These four stocks deserve special...

Sanghyun Park