Ideas
Securities sector is stretched after rally
The Korean securities sector has already rallied strongly on higher trading activity and several one-off catalysts, so it has become burdensome. Existing holders can hold, but the speaker would wait for a correction before adding new money.
Korean holding companies are undervalued normalization plays
Korean holding companies still trade below PBR 1.0 while government-led corporate governance and treasury-share cancellation reforms should push them toward normalization. The best candidates combine high treasury-share ratios with improving earnings from their operating subsidiaries, because those can deliver extra shareholder returns and outpace peers.
SK Inc has high treasury-share upside
SK Inc is the top holding-company pick because it owns more than 20% treasury shares, a ratio far higher than SK Square, and is likely to cancel them after SK hynix announced full cancellation. Its PBR is around 0.88x, leaving roughly 20% upside, and the shares are still attractive after rising to around 310,000 won.
Avoid Hanwha after valuation catches up
Hanwha has already jumped on its treasury-share cancellation news and its PBR has risen close to 0.9-1.0x, so much of the capital-return upside is already priced in. The speaker presents it as too expensive relative to SK Inc, which still trades around 0.88x PBR with more room.
HD Hyundai earnings growth outweighs robot hype
HD Hyundai is a top holding-company pick because its subsidiaries span shipbuilding, refining through Hyundai Oilbank, and robotics. Operating profit is growing sharply toward over KRW 7tn in 2026, and its PBR of about 1.9x is not expensive if the earnings growth continues toward a potential 2.5x; the recent robot-driven rally may be overdone but the earnings story remains strong.
CJ is dropped on valuation uncertainty
CJ is dropped from the holding-company picks. Its PBR has already reached about 1.3x, the stock has risen a lot, and the earnings trend is unclear; Olive Young-related growth appears already reflected or concentrated, so the speaker says to set CJ aside for now.
Watch Noroo treasury-share handling and overhang
Noroo Holdings is a small-cap paint holding company with about 22% treasury shares and PBR around 0.5x, but the stock fell sharply after questions about how the treasury shares were handled and possible overhang. The speaker has not been recommending it recently; investors should watch whether management properly resolves the treasury-share issue.
Avoid LS on governance and spin-off risk
LS is viewed negatively even though its underlying business is good: PBR has already reached about 1.3x, the chairman's attitude toward shareholder returns is poor, and the planned subsidiary listing is in conflict with regulators. The speaker says LS should be avoided for now.
Avoid Kolon on weak capital-return profile
Kolon looks cheap with PBR around 0.5x, but it is ambiguous because it has no treasury shares and the chairman owns too large a stake, limiting the capital-return and governance reform case. The speaker therefore treats it as unattractive within the holding-company selection.
Avoid Lotte on losses and no dividends
Lotte Holdings screens cheap at a PBR near 0.39x, but the subsidiaries do not earn enough money, cash has been drained overseas, it has a short-term net loss, and there is little dividend capacity. The speaker says this makes it unattractive despite the low valuation.
Avoid LG until family dispute resolves
LG Corp looks attractive on a PBR near 0.5x with National Pension Service ownership, but it has little treasury stock and is caught in a family dispute. The speaker says it should not be touched until that dispute is resolved, as the overhang could worsen.
Mirae Asset is best securities pick
Mirae Asset Securities is the speaker's preferred securities stock because it has the highest treasury-share ratio among profitable brokers at 23.15%, plus cross-holdings with Naver related to Dunamu and an investment tied to SpaceX. The speaker expects Chairman Park Hyun-joo to cancel treasury shares, but warns that the cancellation news itself could mark a short-term top, so buying on a pullback is preferred.
Kiwoom benefits from brokerage income growth
If an investor wants direct brokerage-income exposure, Kiwoom Securities is the simple choice because it should benefit from increased trading hours and brokerage revenue. However, the stock has already risen a lot recently, so timing is less attractive.
KB remains liked but upside limited
KB Financial Group remains a liked bank holding company, partly because KB Securities is hot and gives it securities exposure. However, its PBR has already risen close to 1.0x, so it has less upside than Hana; the speaker still views it positively.
Hana is top bank pick
Hana Financial Group replaces KB as the top bank pick. It still trades below 0.7x PBR while KB is near 0.9-1.0x, and its shareholder register includes the National Pension Service and BlackRock at about 6.5%, which should pressure management for more shareholder returns and treasury-share cancellation. The speaker sees more upside and would buy on a pullback.
Shinhan is good on securities arm
Shinhan Financial Group is also viewed positively among banks because it owns a securities subsidiary, Shinhan Securities. This gives it a second earnings driver as the brokerage cycle improves while it still participates in bank value-up and shareholder-return themes.
This 815 Money Talk (815머니톡) video, published February 04, 2026,
features Lee Kwon-hee
discussing Korean securities sector, Korean holding companies, 034730.KS, 000880.KS, 267250.KS, 001040.KS, 000320.KS, 006260.KS, 002020.KS, 004990.KS, 003550.KS, 006800.KS, 039490.KS, 105560.KS, 086790.KS, 055550.KS.
16 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Lee Kwon-hee
· Tickers:
Korean securities sector,
Korean holding companies,
034730.KS,
000880.KS,
267250.KS,
001040.KS,
000320.KS,
006260.KS,
002020.KS,
004990.KS,
003550.KS,
006800.KS,
039490.KS,
105560.KS,
086790.KS,
055550.KS
