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

Initial Thoughts on the Kioxia IPO - Impact on SK Hynix and Samsung Electronics

Kioxia & Tokyo Metro: Japan's Largest IPOs Since 2018 Expected This October

Clepsydra Capital

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

Event-Driven

<ul>
<li>Hynix's potential 15% stake in Kioxia doesn't violate the 20% rule because KFTC's mandatory stake rule doesn't apply to foreign investments.</li>
<li>SK Group may transfer Hynix's 15% Kioxia stake to SK Square by splitting Hynix and merging its investment arm with SK Square for future AI investments.</li>
<li>SK Square may attract more attention than Hynix short-term, as Kioxia's stake via Hynix could boost market expectations for value transfer to SK Square.</li>
</ul>


Hynix's potential 15% stake in Kioxia doesn't violate the 20% rule because KFTC's mandatory stake rule doesn't apply to foreign investments.
SK Group may transfer Hynix's 15% Kioxia stake to SK Square by splitting Hynix and merging its investment arm with SK Square for future AI investments.
SK Square may attract more attention than Hynix short-term, as Kioxia's stake via Hynix could boost market expectations for value transfer to SK Square.


Understanding Potential Issues Within SK Group from Hynix's Kioxia CB Conversion