Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 30 years of experience in the Korean/Asian equity research. Major sectors coverage include the following:
- Technology 
- Consumer 
- Special Situations/Deep Value Plays
- Tender Offers/M&As
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

Why Is Samsung Electronics Underperforming? ("No Trade Unions Until He Has Dirt Over His Eyes")

Samsung Electronics. A Bearish Investment Thesis.

Key Takeaways & Ramifications of Samsung LJY's Public Apologies Today

Cross Asset Strategy

One of the most significant regulations to look out for in Korea in 2H 2020 is the "<a href="http://www.koreaherald.com/view.php?ud=20181112000494" target="_blank" rel="noopener">Co-operation Companies Profit Sharing System</a>" (협력 기업이익공유제), which could actually be made into a law. Now, this issue has been discussed on &amp; off for nearly a decade. This issue became a more serious issue in May 2018 when the incumbent ruling Democratic Party of Korea (DPK) started to lay the initial groundworks, trying to pass this system into law in the National Assembly. Since May 2018, this issue has been blocked and opposed as it was not able to receive the majority votes in the National Assembly.Now that the DPK has an overwhelming 177 out of 300 seats (post the National Assembly Election on April 15th), there is now a very good chance that the "Co-operation Companies Profit Sharing System" could finally be passed into law sometime in 2H 2020. <div class="content-highlight">For now, this "<a href="http://www.koreaherald.com/view.php?ud=20181112000494" target="_blank" rel="noopener">Co-operation Companies Profit Sharing System" </a>will be one of the important potential regulatory changes in 2H 2020. It appears that this may be passed into law although the full details are not yet available. If indeed this passes into law, it could have some meaningful negative impact on numerous mega Korean companies since it is really anti-capitalistic and anti-minority shareholders so it may be worthwhile to keep a close eye on the potential passage of this regulation.  </div>

One of the most significant regulations to look out for in Korea in 2H 2020 is the "Co-operation Companies Profit Sharing System" (협력 기업이익공유제), which could actually be made into a law. Now, this issue has been discussed on &amp; off for nearly a decade. This issue became a more serious issue in May 2018 when the incumbent ruling Democratic Party of Korea (DPK) started to lay the initial groundworks, trying to pass this system into law in the National Assembly. Since May 2018, this issue has been blocked and opposed as it was not able to receive the majority votes in the National Assembly.Now that the DPK has an overwhelming 177 out of 300 seats (post the National Assembly Election on April 15th), there is now a very good chance that the "Co-operation Companies Profit Sharing System" could finally be passed into law sometime in 2H 2020. For now, this "Co-operation Companies Profit Sharing System" will be one of the important potential regulatory changes in 2H 2020. It appears that this may be passed into law although the full details are not yet available. If indeed this passes into law, it could have some meaningful negative impact on numerous mega Korean companies since it is really anti-capitalistic and anti-minority shareholders so it may be worthwhile to keep a close eye on the potential passage of this regulation.  

Can The "Co-Operation Companies Profit Sharing System" Really Be Passed into Law in Korea?