Equity Research

Korea Value in Action (#7): Reality check on Value-Up momentum and the path forward

Although political uncertainty may have dampened market sentiment on the Value-Up program, corporate disclosures have picked up meaningfully following the Value-Up Index launch, and they are accelerating. With increased participation, both buyback activities and treasury share cancellation have increased well above historical trends and dividend momentum has strengthened as companies look to deliver on their promises. We highlight Samsung F&M (000810.KS) for improving shareholder return visibility and KT Corp. (030200.KS)/LG Chem (051910.KS) given room to streamline non-core assets.

2 Mar 2025 | Research | Equity - Sinyoung Park and others

South Korea Telecom Services: Turn cautious on telco space; KT stands out on improving shareholder return (up to Buy); Neutral on SKT (d/g), LGU

We look at the (1) overall ROIC trend that seems to be on a structurally deteriorating trend over the LT despite generation upgrades, with (2) the wireless segment momentum more subdued in the ST, and (3) increased concerns over multiple regulatory risk factors (although we have mixed views on each factor).

2 Mar 2025 | Research | Equity - Eric Cha and others

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