🇰🇷 Korean Stock Picks (January 2025)
🤖 AI generated insights about Korean stocks (and some wild unverifiable answers) + NAVER, Kia, LG Display, SK Hynix, Hyundai Motor, SK Hynix, CS Wind Corp, SK Telecom, KT Corp, Coway, etc.
As mentioned on Sunday, I have been experimenting with some Chinese AI providers (such as DeepSeek) and have decided to include some AI generated insights (denoted by a 🤖) into this monthly post covering Korean stocks.
Note that DeepSeek seemed to produce much deeper insights than the other (less publicly hyped) Chinese AI that I have experimented with (which seemed to be better at extracting/organising data and info).
However, DeepSeek also produced insights/facts/answers seemingly out of thin air that I simply cannot verify while financial related answers/ratios seemed to mostly be up to Q3 2023 (over a year ago) PLUS the site’s server is constantly busy (Asia time)…
DeepSeek Claims SK Hynix (KRX: 000660) Suspended Dividends in 2023
When I asked, “Can you give me some bullet points or key news for investors about…”, for SK Hynix (KRX: 000660), a widely held Korean chip stock, one of the things DeepSeek told me was:
Dividends: Suspended in 2023 to preserve cash; focus on capitalizing on AI memory boom.
That’s sort of a major announcement for investors to consider that I was not aware of - so I asked a follow-up question:
ME: Did SK Hynix suspend dividends in 2023?
I then asked another follow-up question:
I checked the SK hynix, Inc. (HXSCF) Q1 2023 Earnings Call Transcript (archived here) which is in English and there is no mention of the dividend at all. And the technical chart shows 2023 dividends (300 Won each…) being declared (that I assumed were paid…):
Suspending dividends in 2023 to preserve cash and focus on capitalizing on AI memory boom sounds like a reasonable business decision. But unless I am missing out on some dividend talk or speculation in Korean language media or in a filing, I don’t know where DeepSeek came up with this answer.
If DeepSeek is actually right, maybe somebody more familiar with the stock can enlighten me…
ST Pharm (KRX: 237690)’s Mysterious Boston Research Hub…
For ST Pharm (KRX: 237690), among the insights DeepSeek told me was this:
Opened a new R&D center in Boston, USA (2023) to focus on next-gen biologics and mRNA technology.
And:
U.S. Market Penetration: Leveraging Boston R&D hub for biologics partnerships.
However, the only evidence I could find of a Boston research hub was a headline like this:
📰 ST Pharm to co-develop TNFR inhibitor with US-based Interon (Korea Biomedical Review) 2024.06.11
ST Pharm said Monday that it has entered into a collaboration agreement with Interon Laboratories, a Boston, Mass.-based biotechnology company, to develop tumor necrosis factor receptor (TNFR) inhibitors.
Under the agreement, the companies will collaborate for two years to identify small molecule preclinical candidates that selectively inhibit TNFR.
I don’t consider a collaboration agreement with a Boston based group to be the same as having a new R&D center in Boston as companies often sign all sorts of MOAs, etc. that never lead to anything more than a press release and photo op. But with that said, I could have still missed something in Korean media, written in Korean, or from an earnings call transcript/filing.
DeepSeek was accurate in telling me that ST Pharm seems to be knee deep in mRNA technology/research and the AI seemed genuinely excited about this. However and with non-Big Pharma controlled RFK Jr. confirmed as the new health secretary, we might find out things about (expensive new) mRNA technology (specifically involving the V word…) that Big Pharma and their government buddies do not want us to find out about. However, I would not expect DeepSeek or any AI to speculate on that beyond noting the usual regulatory and safety risks associated with being in pharma…
DeepSeek’s Server is Almost Always Busy………..
Late evening (like after 11-midnight Asia time on Wednesday), DeepSeek was fairly quickly answering my questions without giving me the server is busy message.
However, from about 11AM Asia time (10PM EST USA Time) to 11PM+ Asia time on Thursday, the DeepSeek server got and mostly stayed busy:
This, of course, does me and nobody else any good - at least not in Asia... And I did not feel like staying up well past midnight again to see if the server became less busy…
This also makes me wonder if DeepSeek is not just Chinese psyop or something put out there for Americans in the USA time zone to use OR to try and knock a trillion or so off the valuations of American big tech + NASDAQ - unless everyone in China is using it Asia time (as Americans needing their homework done have ChatGPT for that…).
The Bottom Line About DeepSeek/Chinese AI…
As covered last Sunday, I reallyyy like how DeepSeek (when the server is not busy) and other Chinese AI services can extract/organize/summarize any data/information that I give it (although I felt the other Chinese AI service was a bit better at this than DeepSeek).
However…
While I could still be missing something reported or written in Korean about the stocks covered in this post, anything else (specific facts or news) DeepSeek produces needs to be verified, taken with a grain of salt, or considered opinion as I can’t be certain of where its coming from (and DeepSeek is NOT being helpful when asked to produce a link to the original source material…).
In other words, trust but verify AI…
And like many people, I had played with ChatGPT when it first came out, but it quickly lost all credibility and became a joke when it started producing black Vikings and the like. Likewise, IF DeepSeek keeps giving me a “server is busy” message, I will stop trying to use it...
Korean stocks covered in the rest of this post (with a short description from our Japan, Korea & Taiwan Stock Index plus price/book, forward P/E, forward dividend yield, a long term technical chart, and some AI generated insights 🤖 that might still need some deeper factchecking):
[Note: On desktop browsers, an autogenerated table of contents will appear on the left side linked to each stock. I will add those links below after publishing/emailing this post…]
NAVER, Hyundai Mobis, S-Oil Corp, Kia Corp, DoubleDown Interactive, LG Display, Samsung Life Insurance, Kangwon Land, Hyundai Department Store, Samsung E&A, Hyundai Motor, Samsung SDS, SK Hynix, ST Pharm, LG Innotek, Korea Zinc / Young Poong Precision Corporation, Samsung Electronics, Samsung Biologics, Hyundai Engineering & Construction, HMM, CS Wind Corp & LX Hausys
Stocks with no DeepSeek AI generated insights because I got tired of waiting on their server:
Hyundai Rotem, LIG Nex1, Hana Micron, HD Hyundai Mipo Co Ltd, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Heavy Industries, Shinhan Financial Group, T'Way Air, SK Telecom, KT Corp, LS Electric Co Ltd, Coway Co Ltd, Hyundai Livart Furniture Co Ltd, Dear U Co Ltd, JYP Entertainment Corp, SM Entertainment Co Ltd, HYBE, Ecopro BM Co Ltd, Hugel, Doosan Corp, Kolmar Korea, BNK Financial Group, KB Financial Group, GS Engineering & Construction Corp, Hyundai Motor Securities, E-Mart, DL E&C Co Ltd, Amorepacific Corp, LG Energy Solution, LG Electronics, Hanwha Solutions, LX International, LG Corp, NH Investment & Securities, Korea Investment Holdings, Samsung Electro-Mechanics, Krafton, Lotte Tour Development, Paradise Co Ltd & HD Hyundai Electric Co Ltd
And as always, this post is provided for informational purposes only (and to make your life easier…). It does not constitute investment advice and/or a recommendation…
🔬 Research analysis (including articles/blog posts from fund managers, etc.); 🎥 Video; 🎙️ Podcast; 🎬 Webinar; 📰 Newspaper/magazine article; 📯 Press release; 💻 Substack/blog/website article; ✅ Our own posts; 🗃️ Archived article; ⏰ Upcoming webinar or event; ⚠️ Disclosures or restricted access e.g. based on your location, investor status, etc.; 🇼 Wikipedia page; 🏷️ Tagged links to other posts about the stock. 🤖 AI generated insights that might need further “factchecking…” or verification…
NAVER
💻 Naver: CHZZK Increasing Market Share in the Korean Live Game Streaming Sector (Douglas Research Insights) Jan 31, 2025 $
🌐 NAVER (KRX: 035420 / OTCMKTS: NHNCF) - Global ICT company. Korea’s #1 search portal "NAVER" + LINE messenger, SNOW camera app, digital comics platform + R&D (AI, robotics, mobility & other future technology). 🇼 🏷️
🤖 Webtoon Dominance: Line Webtoon’s global popularity, with plans for a potential IPO to unlock value. Saudi Arabia Cloud Deal: Secured a $100M+ contract for national digital transformation, boosting Naver Cloud’s global profile. Analyst Ratings: Mixed outlooks due to regulatory risks but optimism around AI/cloud growth. Institutional Activity: Increased holdings by global funds betting on long-term tech leadership.
Price/Book (Current): 1.36
Forward P/E: 19.76 / Forward Annual Dividend Yield: 0.51% (Yahoo! Finance)
Hyundai Mobis
🔬 Hyundai Mobis (012330 KS/Buy) - 4Q24 earnings beat consensus; detailed shareholder return measures announced (Mirae Asset Securities) 01.31.2025 ⚠️
🇰🇷 Hyundai Mobis (KRX: 012330) formerly Hyundai Precision & Industries Corporation - "Parts and service" arm for Korean automakers Hyundai Motor Company, Genesis Motors & Kia Motors. 🇼 🏷️
🤖 EV & Autonomous Driving: Heavy R&D investment in e-powertrains, BMS (battery management systems), and LiDAR/radar sensors for Level 4 autonomy. Analyst Sentiment: Mixed ratings; bullish on EV growth but cautious about margin recovery and diversification. Institutional Interest: Increased holdings by ESG-focused funds due to hydrogen and sustainability initiatives.
Price/Book (Current): 0.53
🤖 Valuation: Trading at a discount compared to peers (e.g., LG Electronics) due to reliance on Hyundai Group.
Forward P/E: 5.00 / Forward Annual Dividend Yield: 2.35% (Yahoo! Finance)
S-Oil Corp
🔬 S-Oil (010950 KS/Buy) - Sentiment improving amid gradual earnings recovery (Mirae Asset Securities) 01.31.2025 ⚠️
🌏🅿️ S-Oil Corp (KRX: 010950 / 010955) - Originally Iran-Korea petroleum company. Produces petroleum, petrochemical & lubricant products. Majority-owned by Saudi Aramco (TADAWUL: 2222). 🇼 🏷️
🤖 Shaheen Project: $7B expansion (2023–2026) to build a steam cracker and olefin downstream facilities, boosting petrochemical output by 2027. Analyst Views: Cautious optimism on Shaheen Project upside but concerns over 2024 margin normalization.
Price/Book (Current): 0.81
Forward P/E: 9.29 / Forward Annual Dividend Yield: 2.67% (Yahoo! Finance)
Kia Corp
🔬 Kia Corp. (000270 KS/Buy) - Higher quarter-end FX rate had a negative impact; 2025 OP margin forecast at 11% (Mirae Asset Securities) 01.31.2025 ⚠️
🌐 Kia Corp (KRX: 000270 / OTCMKTS: KIMTF) - Manufactures & sells vehicles in South Korea, North America & Europe. 🇼 🏷️
🤖 India: Targeting 10% market share by 2025 via new SUVs and EVs; $1.1B investment in local R&D and production. U.S. IRA Benefits: Georgia plant operational by 2025, enabling access to $7,500 EV tax credits.
Price/Book (Current): 0.72
Trailing P/E: 3.87 (no forward P/E) / Forward Annual Dividend Yield: 6.84% (Yahoo! Finance)
🤖 Shareholder Returns: Increased buybacks ($1B program in 2023) and dividends to attract institutional investors.
