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

Clepsydra Capital

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

Event-Driven

<ul>
<li>Woori Financial's value-up plan centers on improving the CET1 ratio to boost shareholder returns, with the total return ratio directly tied to the CET1 ratio.</li>
<li>The market believed that if the acquisition cost stayed under ₩1.9 trillion, the CET1 ratio impact would be minimal, potentially leading to mid-term gains from non-banking profits.</li>
<li>Though this may hurt Tongyang Life's short-term stock, it opened the door for local institutional investors, especially NPS, to consider Woori Financial for value-up investments.</li>
</ul>


Woori Financial's value-up plan centers on improving the CET1 ratio to boost shareholder returns, with the total return ratio directly tied to the CET1 ratio.
The market believed that if the acquisition cost stayed under ₩1.9 trillion, the CET1 ratio impact would be minimal, potentially leading to mid-term gains from non-banking profits.
Though this may hurt Tongyang Life's short-term stock, it opened the door for local institutional investors, especially NPS, to consider Woori Financial for value-up investments.


Impact of Woori Financial’s Tongyang Life Acquisition Below ₩1.5T on Value-Up Flows

Woori Financial Group

Impact of Woori Financial’s Tongyang Life Acquisition Below ₩1.5T on Value-Up Flows