Daily Brief South Korea: Ecopro Co Ltd, L&F Co Ltd, GS Engineering & Construction and more

In today’s briefing:

What We Know Until Now About L&F & Ecopro BM’s Kospi Transfer Listing
L&F Considering On Switching Listing from KOSDAQ to KOSPI
GS E&Cㅣ Underground Parking Lot Collapse Incidentㅣ Full-Scale Reconstruction and Rising Risks

What We Know Until Now About L&F & Ecopro BM’s Kospi Transfer Listing

Yonhap News reported on the exclusive coverage of Ecopro BM and L&F’s KOSPI transfer listing.
L&F announced through the disclosure that they are considering the KOSPI transfer listing. Ecopro BM told another local news outlet that they are not currently reviewing the KOSPI transfer listing.
It seems that L&F’s KOSPI transfer listing is almost a confirmed fact. However, the Ecopro company in question may be Ecopro Co, not Ecopro BM.

On 19 July, there were local media accounts that L&F Co Ltd (066970 KS) is considering on switching its listing from KOSDAQ to KOSPI.
L&F’s main business involves making cathode active materials for rechargeable batteries.
Despite this positive move, we believe the valuations of L&F have become too high. Its operating margins also worsened from 9.6% in 1Q 2022 to 3.0% in 1Q 2023.

The Ministry of Land, Infrastructure and Transport’s investigation revealed that the collapse of GS E&C’s underground parking lot was due to deficiencies in design, construction, and supervision.
As a response, GS E&C will undergo a comprehensive reconstruction of the entire apartment complex, costing approximately KRW 300 billion, which is equivalent to approximately USD 264 million.
ESG risks have risen due to consumer relations regarding occupational health and safety and risk oversight, with GS E&C’s company risk rating at a ‘very high’ level of 3.1.

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