Summary
The author discusses the recent opening of Korean single-stock trading to foreigners via IBKR, noting that the KOSPI has already rallied 160% and is likely in a late-stage cycle. He argues that deep-value opportunities remain in Korean holding companies and preferred shares due to corporate governance discounts and domestic investor PTSD, which foreign inflows may close. He lists specific holdcos and preferreds with NAV discounts and attractive underlying assets, but does not disclose personal positions.
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•IBKR now allows foreign retail to trade Korean single stocks, triggering a wave of small-cap shilling on FinTwit.
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•KOSPI is up 160% from 2500 to 6600, suggesting the market is in a late-stage phase, not early.
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•Best entry window would have been during December 2024 martial law, but some large-mid caps still trade at deep NAV discounts.
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•Discounts are driven by poor corporate governance and domestic investor PTSD, both of which are changing.
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•New administration's policy agenda focuses on corporate governance reform, with stock prices as a key reaction function.
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•Foreign retail and small funds using IBKR may deploy into discounted holdcos/preferreds, closing the valuation gap.
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•The author highlights specific holdcos (Hyosung Corp, Hanwha Corp, SK Square, SK Inc, Samsung C&T, HD Korea Shipbuilding, HD Hyundai, Doosan Corp) with NAV discounts of 20-70% and attractive underlying assets like electricity, defense, semis, shipbuilding, and nuclear.
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•Preferred shares are also mentioned as deep discount plays relative to commons, but the list is incomplete.