Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

I investigate special situations, pairs, and index rebalancing trades in Korea.

Korea / Special Sits, Pairs, Index Rebalancing

Kum Yang's Wild Rights Offering Breakdown: A Potential Straight-Up Play for Arb Traders

Breaking Down the Details of Korea Zinc’s Shocking Capital Raise

Kumyang's Capital Raise Drop: Breaking It Down from an Arb Trading Play

Korea Zinc's Buyback Results and Price Actions from Potential Sale of 9.85% Treasury to ESOP

Korea Zinc’s Buyback Likely Hit Half Target—Watch for Next Moves

Clepsydra Capital

Investigate special situations, pairs, and index rebalancing trades in Korea.

Event-Driven

<ul>
<li>The main confusion is about the FSS's authority. According to the Capital Markets Act, they can’t approve capital raises but can request corrections for investor protection.</li>
<li>The FSS can issue unlimited correction requests, potentially stalling a capital raise indefinitely, which effectively pulls the plug on the entire deal.</li>
<li>Kum Yang's one is valid today; if no new correction requests arise, the capital increase proceeds. Korea Zinc faces a likely request on the 14th, causing a 2-week delay.</li>
</ul>


The main confusion is about the FSS's authority. According to the Capital Markets Act, they can’t approve capital raises but can request corrections for investor protection.
The FSS can issue unlimited correction requests, potentially stalling a capital raise indefinitely, which effectively pulls the plug on the entire deal.
Kum Yang's one is valid today; if no new correction requests arise, the capital increase proceeds. Korea Zinc faces a likely request on the 14th, causing a 2-week delay.


Clearing up the FSS's Authority on Capital Increases in Korea: Korea Zinc & Kum Yang