Daily Brief South Korea: Woori Financial Group , Korea Stock Exchange KOSPI 200, Kakao Games and more

In today’s briefing:

Investigating Potential Block Deals Involving Korea’s Financial Holding Companies
Quiddity Leaderboard KOSPI 200 Jun 24: L&F (066970) Likely To Miss Out on Fast Entry in March
Kakao Games: Put Options on CB Likely to Drive Lower Share Price

Investigating Potential Block Deals Involving Korea’s Financial Holding Companies

Stake sales by Affinity and Bearing PE are attractive due to the absence of special partnerships with Shinhan Financial Group, indicating favorable exit potential at current stock prices.
KB Financial draws attention due to Carlyle’s ₩240B EB investment in 2020. Carlyle can now convert to shares at ₩48,000/share, yielding 37.08%.
Woori Financial is intriguing. IMM PE and Eugene PE hold stakes, investing ₩450B and ₩386B respectively. Their yields are 32.55% and 10.45% respectively. No constraints on divestment.

KOSPI 200 is a Korean blue-chip index that tracks the 200 largest and most-liquid names listed in the KOSPI section of the Korea Exchange (KRX).
In this insight, we take a look at the names leading the race to become ADDs and DELs during the upcoming semiannual review in June 2024.
There could be up to four changes in the KOSPI 200 index in the run up to the June 2024 index rebal event including an intra-review fast entry change.

One of the biggest risks facing Kakao Games is nearly 500 billion won that it may need to pay to investors that exercise their put options on CB.
The full exercise of the put options on CBs (500 billion won) could represent nearly 24% of Kakao Games’ market cap at current prices.
The worst case for Kakao Games would be for the company to pay nearly 500 billion won at once by the end of March.

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