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

Korea Shorting Resumes Next Week: Immediate Target Stocks on the Radar

Shorting Alert Amid Korea NPS Negative Screening on Coal: KEPCO, GS, OCI, Kumho P, LG Int, & POSCO

KOSDAQ 150 Preview: 16 Additions & 17 Deletions - Passive Inflow/ADTV & Loan Balance/Float

KOSPI 200 Rebalancing: SK BioS/SK IET Fast Entry & LG Corp New Entity (8 Added & 9 Deleted)

Why NPS Buys SK Bioscience Lately & Lurking Timing for KOSPI 200 Entry Event

Clepsydra Capital

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

Event-Driven

Myoung Shin Industrial Co.,Ltd / Event-Driven

Myoung Shin Industrial Co.,Ltd (009900 KS)

We should expect more changes than usual in the upcoming KOSPI 200 index review.The KRX confirmed that<ul>
<li>The original company of F&amp;F (007700) will remain in KOSPI 200</li>
<li>The original company of LG (003550) will remain in KOSPI200</li>
<li>The spin-off company of LG (003550), known as LX Holdings, will join KOSPI 200</li>
</ul>SK Bioscience (302440) must have secured a fast entry, although the KRX has yet to announce it officially.During the review period (November 1-April 23, yes, we still have 5 more days to go), the daily average market cap spits out 6 names for potential addition.Thus, we have 8 potential additions, which I believe have a 90% probability.<table class="table table-striped">
<colgroup>
<col width="200">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Additions - inflow (₩B)"}'>Potential additions (₩B)</td>
<td style="text-align: right; width: 116.364px;">Type</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"MC"}'>Daily average market cap</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":2,"2":"FMC"}'>Daily average float-adj market cap</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Hyosung Advanced Materials Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyosung Advanced Materials Corp</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":298050}' data-sheets-formula="='1st'!R[24]C[0]">298050</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1859.17842}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,859.2</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":1028.869337628}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">1,028.9</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Taihan Electric Wire Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Taihan Electric Wire Co Ltd</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"001440"}' data-sheets-formula="='1st'!R[71]C[0]">001440</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1019.20288071}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,019.2</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":457.112491998435}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">457.1</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"TY Holdings Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>TY Holdings Co Ltd</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":363280}' data-sheets-formula="='1st'!R[71]C[0]">363280</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1112.7537355}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,112.8</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":530.3384303393}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">530.3</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Hyosung TNC Corp"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Hyosung TNC Corp</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":298020}' data-sheets-formula="='1st'!R[95]C[0]">298020</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":3215.467726}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>3,215.5</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":1794.8740846532}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">1,794.9</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Myoung Shin Industrial Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Myoung Shin Industrial Co Ltd</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"009900"}' data-sheets-formula="='1st'!R[96]C[0]">009900</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":1190.750304}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>1,190.8</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":437.71981175039997}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">437.7</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"Dongwon Industries Co., Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>Dongwon Industries Co., Ltd</td>
<td style="text-align: right; width: 116.364px;">Regular review</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"006040"}' data-sheets-formula="='1st'!R[128]C[0]">006040</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":961.7031215}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>961.7</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":283.22156928174996}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">283.2</td>
</tr>
<tr>
<td style="width: 262.727px;" data-sheets-value='{"1":2,"2":"SK Bioscience Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C[1], "name")'>SK Bioscience Co Ltd</td>
<td style="text-align: right; width: 116.364px;">Fast-entry</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":2,"2":"302440"}' data-sheets-formula='="302440"'>302440</td>
<td style="text-align: right; width: 80.9091px;" data-sheets-value='{"1":3,"3":11513.25}' data-sheets-formula='=googlefinance(R[0]C[-1], "price")*googlefinance(R[0]C[-1], "shares")/1000000000'>11,513.3</td>
<td style="text-align: right; width: 98.1818px;" data-sheets-value='{"1":3,"3":2953.1486250000003}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">2,953.1</td>
</tr>
<tr>
<td style="width: 262.727px;">LX Holdings </td>
<td style="text-align: right; width: 116.364px;">Spin-off</td>
<td style="text-align: right; width: 80.9091px;">-</td>
<td style="text-align: right; width: 80.9091px;">-</td>
<td style="text-align: right; width: 98.1818px;">-</td>
</tr>
<tr><td colspan="5" style="width: 262.727px;">Source: KRX</td></tr>
</tbody>
</table>To make room for the new members, the following 8 names will likely leave the index based on the review until April 23.<table class="table table-striped">
<colgroup>
<col width="200">
<col width="70">
<col width="70">
<col width="70">
</colgroup>
<tbody>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Deletions - outflow (₩B)"}'>Potential deletions (₩B)</td>
<td style="text-align: right; width: 130px;">Type</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"Ticker"}'>Ticker</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":2,"2":"MC"}'>Daily average market cap</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":2,"2":"FMC"}'>Daily average float-adj market cap</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Tae Young Engineering&amp;Constructin Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Tae Young Engineering&amp;Constructin Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"009410"}' data-sheets-formula="='2nd S'!R[-40]C[0]">009410</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":490.1286348}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>490.1</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":246.63272903136}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">246.6</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Namsun Aluminum Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Namsun Aluminum Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"008350"}' data-sheets-formula="='2nd S'!R[-40]C[0]">008350</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":424.74039195}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>424.7</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":347.94732908544}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">347.9</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Binggrae Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Binggrae Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"005180"}' data-sheets-formula="='2nd S'!R[-40]C[0]">005180</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":633.4347963}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>633.4</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":309.49624147218}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">309.5</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Hanil Hyundai Cement Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Hanil Hyundai Cement Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"006390"}' data-sheets-formula="='2nd S'!R[-40]C[0]">006390</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":697.2424705}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>697.2</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":109.81568910374999}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">109.8</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Samyang Corp"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Samyang Corp</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":3,"3":145990}' data-sheets-formula="='2nd S'!R[-40]C[0]">145990</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":627.0576992}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>627.1</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":184.04143471519998}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">184.0</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"Lock&amp;Lock Co Ltd"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>Lock&amp;Lock Co Ltd</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":3,"3":115390}' data-sheets-formula="='2nd S'!R[-40]C[0]">115390</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":832.2199166}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>832.2</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":251.99619074648}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">252.0</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"LG HAUSYS, LTD."}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>LG HAUSYS, LTD.</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":3,"3":108670}' data-sheets-formula="='2nd S'!R[-40]C[0]">108670</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":782.877591}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>782.9</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":518.6564040375}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">518.7</td>
</tr>
<tr>
<td style="width: 255.455px;" data-sheets-value='{"1":2,"2":"JW Pharmaceutical Corp"}' data-sheets-formula='=googlefinance(R[0]C2, "name")'>JW Pharmaceutical Corp</td>
<td style="text-align: right; width: 130px;">Regular review</td>
<td style="text-align: right; width: 74.5455px;" data-sheets-value='{"1":2,"2":"001060"}' data-sheets-formula="='2nd S'!R[-40]C[0]">001060</td>
<td style="text-align: right; width: 78.1818px;" data-sheets-value='{"1":3,"3":651.5827615}' data-sheets-formula='=googlefinance(R[0]C2, "price")*googlefinance(R[0]C2, "shares")/1000000000'>651.6</td>
<td style="text-align: right; width: 99.0909px;" data-sheets-value='{"1":3,"3":364.4953967831}' data-sheets-formula="=R[0]C[-1]*R[0]C[1]">364.5</td>
</tr>
<tr><td colspan="5" style="width: 720.909px;">Source: KRX</td></tr>
</tbody>
</table><hr><div class="content-highlight">SK IE Technology also has a decent shot to a fast entry. If that happens, KEPCO Engineering &amp; Construction (052690) will be a likely deletion.</div>

We should expect more changes than usual in the upcoming KOSPI 200 index review.The KRX confirmed that
The original company of F&amp;F (007700) will remain in KOSPI 200
The original company of LG (003550) will remain in KOSPI200
The spin-off company of LG (003550), known as LX Holdings, will join KOSPI 200
SK Bioscience (302440) must have secured a fast entry, although the KRX has yet to announce it officially.During the review period (November 1-April 23, yes, we still have 5 more days to go), the daily average market cap spits out 6 names for potential addition.Thus, we have 8 potential additions, which I believe have a 90% probability.








Potential additions (₩B)
Type
Ticker
Daily average market cap
Daily average float-adj market cap


Hyosung Advanced Materials Corp
Regular review
298050
1,859.2
1,028.9


Taihan Electric Wire Co Ltd
Regular review
001440
1,019.2
457.1


TY Holdings Co Ltd
Regular review
363280
1,112.8
530.3


Hyosung TNC Corp
Regular review
298020
3,215.5
1,794.9


Myoung Shin Industrial Co Ltd
Regular review
009900
1,190.8
437.7


Dongwon Industries Co., Ltd
Regular review
006040
961.7
283.2


SK Bioscience Co Ltd
Fast-entry
302440
11,513.3
2,953.1


LX Holdings 
Spin-off
-
-
-

Source: KRX

To make room for the new members, the following 8 names will likely leave the index based on the review until April 23.








Potential deletions (₩B)
Type
Ticker
Daily average market cap
Daily average float-adj market cap


Tae Young Engineering&amp;Constructin Co Ltd
Regular review
009410
490.1
246.6


Namsun Aluminum Co Ltd
Regular review
008350
424.7
347.9


Binggrae Co Ltd
Regular review
005180
633.4
309.5


Hanil Hyundai Cement Co Ltd
Regular review
006390
697.2
109.8


Samyang Corp
Regular review
145990
627.1
184.0


Lock&amp;Lock Co Ltd
Regular review
115390
832.2
252.0


LG HAUSYS, LTD.
Regular review
108670
782.9
518.7


JW Pharmaceutical Corp
Regular review
001060
651.6
364.5

Source: KRX

SK IE Technology also has a decent shot to a fast entry. If that happens, KEPCO Engineering &amp; Construction (052690) will be a likely deletion.

KOSPI 200 Index Review: Likely Changes Incl. Spinoff & Fast Entry & Stock in Early Trading