◆Aju Economy Major News
▷Law Firm Kim & Chang: "Strengthened Delisting Era... Merging and Reducing Shares Won't Hold Up, Ultimately Focus on Fundamentals"
- The government plans to significantly strengthen the delisting procedures for poorly performing companies starting July 1, aiming to address the Korea Discount. A wave of delistings is expected for struggling firms, increasing the need for proactive measures to survive.
- Lawyer Jo Jun-woo from Kim & Chang stated, "The requirement to recover over 45 trading days can be a considerable burden for struggling companies," adding that simply merging or reducing shares to evade immediate crises will not provide a fundamental solution. He noted that once a company is designated as a management issue or trading is suspended, it faces a stigma in the market, making it very difficult to recover stock prices even with external expert assistance.
- To survive in the market, companies must focus on enhancing their fundamental value through attracting investment, mergers and acquisitions, discovering new business opportunities, and increasing shareholder returns.
- Lawyer Park Hyun-soo emphasized, "There are clear limitations to responding in the short term after problems arise," stating that the paradigm is shifting to a structure where thorough compliance and early assistance from external experts are essential.
◆Major Reports
▷SK Hynix Shows Relative Strength Amid Market Normalization Following Black Monday [Yuanta Securities]
- Following last week's Black Monday, SK Hynix has shown relative strength during the market normalization process. The gap in market capitalization with Samsung Electronics (2,026 trillion won) has narrowed significantly, with SK Hynix at 1,797 trillion won.
- Analysts attribute this to the anticipated listing of SK Hynix's American Depositary Receipts (ADRs) on Nasdaq as early as July. This listing is expected to improve access for overseas investors and potentially open up the possibility of inclusion in the Philadelphia Semiconductor Index in the medium to long term. Inclusion could lead to inflows of passive funds tracking the semiconductor index, expanded valuation comparisons with U.S. semiconductor peers, and a broader base of global investors, despite the ongoing strong performance, exports, and price increases in the semiconductor sector.
◆Key Disclosures After Market Close (June 17)
▷LG Innotek: "Aiming for 1 trillion won in operating profit from substrate business within 5 years"
▷Vinatek: "Investing 15.1 billion won in Vietnamese subsidiary"
◆Fund Trends (as of June 16, excluding ETFs)
▷Domestic Equity Funds: +363.3 billion won
▷Overseas Equity Funds: +406.7 billion won
◆Key Schedule for Today (June 18)
▷U.S.: Philadelphia Fed Index (May), Leading Economic Index (May)
* This article has been translated by AI.
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