In today’s briefing:
- KOSPI 200 & KOSDAQ 150 December Rejig Lineup
- KOSPI200 Index Rebalance: Adds in Line; Couple of Deletes Are Surprises
- KOSDAQ150 Index Rebalance: 8 Changes a Side; Fadu Appears to Be a 4 Letter Word
- LG Chem’s Tax Alarm: Pillar Two Tax Could Soar Next Year + LGES Block Deal on the Horizon
KOSPI 200 & KOSDAQ 150 December Rejig Lineup
- KOSPI 200 & KOSDAQ 150 Dec reshuffle looks set—official lineup drops post-close today.
- Passive flows for KOSPI 200 and KOSDAQ 150 are estimated at 40T KRW and 3.5T KRW, based on typical flow sizes until the effective date.
- These predictions combine my sim results with reliable local intel. The accuracy’s solid enough to start pulling the trigger on trades.
KOSPI200 Index Rebalance: Adds in Line; Couple of Deletes Are Surprises
- There will be 4 additions and 5 deletions for the Korea Stock Exchange KOSPI 200 (KOSPI2 INDEX) at the next rebalance to be implemented at the close on 12 December.
- The 4 adds are exactly in line with our forecast but a couple of the deletions are surprises. Those two names were close deletes though.
- The are some large shorts on a few deletes and there could be covering over the next few weeks as borrows are recalled and as the stocks drop.
KOSDAQ150 Index Rebalance: 8 Changes a Side; Fadu Appears to Be a 4 Letter Word
- There will be 8 additions and 8 deletions for the KOSDAQ 150 Index (KOSDQ150 INDEX) at the next rebalance to be implemented at the close on 12 December.
- Most of the inclusions were forecast but there is a lot of variance among the list of deletions… index committee knows best!
- Fadu (440110 KS) was ignored for yet another rebalance, while Snh Inc (051980 KS) has also not been included in the index.
LG Chem’s Tax Alarm: Pillar Two Tax Could Soar Next Year + LGES Block Deal on the Horizon
- The local market’s buzzing that LG Chem could face a 200-300 billion KRW tax hit from Pillar Two next year, with LGES ramping up U.S. production.
- LG Chem may be reconsidering its plan to sell 2% of its LGES stake, dropping ownership below 80%, shifting the tax burden to LGES instead of itself.
- Flagging this now—LG Chem’s tax burden looms. Consider shorting LGES or a long-short with LG Chem, plus prep for the 2T KRW block deal with the pre-disclosure process.
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