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

Korean ADRs: KT & POSCO Are the Ones to Watch

Korea ADR List & Current Status Check: LG Display DR Situation Is Interesting

Substantial Premiums on Korean ADRs Amid Friday Rally in US: Current Status Checkup

SK Telecom ADR (SKM) Premium Currently at 8%, How Would I Trade?

Clepsydra Capital

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

Event-Driven

<p>Eight local shares in Korea have ADRs listed on NYSE.</p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/988/original/3.png?1632199949" class="editor-image img-responsive" data-smartkarma-image-id="230988"></figure><p>KT, Shinhan Financial, SK Telecom, and POSCO have relatively large outstanding ADRs compared to their issuance cap. In particular, KT, SK Telecom, and POSCO hold a significant amount of ADRs even compared to their total number of issued shares.</p>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/990/original/4.png?1632200533" class="editor-image img-responsive" data-smartkarma-image-id="230990"></figure></section><hr>
<p><strong>Most of these shares have greatly expanded their price disparity with the underlying shares due to the correction of the NYSE last Friday and today and the closure of the local stock market.</strong></p></section><div class="content-highlight"><p>Among them, POSCO has the widest price gap. The ADR is at a 5.09% discount to the underlying share as of today's closing price. On the other hand, LG Display's ADR rose close to 3% today, at a 0.61% premium to the underlying share.</p></div><section class="figure"><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/230/992/original/10.png?1632203660" class="editor-image img-responsive" data-smartkarma-image-id="230992"></figure></section></section>

Eight local shares in Korea have ADRs listed on NYSE.KT, Shinhan Financial, SK Telecom, and POSCO have relatively large outstanding ADRs compared to their issuance cap. In particular, KT, SK Telecom, and POSCO hold a significant amount of ADRs even compared to their total number of issued shares.

Most of these shares have greatly expanded their price disparity with the underlying shares due to the correction of the NYSE last Friday and today and the closure of the local stock market.Among them, POSCO has the widest price gap. The ADR is at a 5.09% discount to the underlying share as of today's closing price. On the other hand, LG Display's ADR rose close to 3% today, at a 0.61% premium to the underlying share.

Korea ADRs at a Substantial Price Disparity: Watch LG Display & POSCO

LG Display (ADR)

Korea ADRs at a Substantial Price Disparity: Watch LG Display & POSCO