KB Securities targets third straight crown, from unicorns.. KOSPI ▲4,551.06 │ KOSDAQ ▼947.39│ KRW/USD▼1,446.94 |
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As of 3:30 p.m. on the previous trading day |
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✴ Subiol╎TES, an O and M operator for water purification and wastewater treatment plants, was acquired by Glenwood Private Equity, changed its name to Subiol, and relocated from Bucheon to Mullae-dong, Seoul. After separating from the Boobang Group, the company is expanding into new businesses such as waste and recycling under an independent identity.
✴ Korea Growth Investment Corp.╎Korea Growth Investment Corp. has launched a fund-of-funds program focused on K-defense exports and early-stage companies, committing about $13.7 million (₩20 billion) to form sub-funds totaling more than $27.4 million (₩40 billion). The structure concentrates capital on defense exporters and early-stage firms, drawing attention from fund managers and the defense industry.
✴ Canaph Therapeutics╎Genome-based drug developer Canaph Therapeutics has entered IPO procedures, bringing exit prospects for major VCs and financial investors into view. Premier Partners, Kolon Investment, and InterVest are expected to achieve returns of around two times based on the IPO price band.
✴ SIMPAC╎SIMPAC carried out a reverse merger in which its subsidiary SIMPAC absorbed parent company SIMPAC Holdings, lifting the owner’s second-generation stake from 0.3 percent to over 20 percent. While the structure reduced the burden of funding succession by merging a low-valued listed firm with a highly valued unlisted one, criticism has emerged that the cost is shared with minority shareholders.
✴ Align Partners╎Align Partners is pressuring Stick Investment, where it is the third-largest shareholder, to disclose a promised mid- to long-term growth strategy and value-up plan by the 19th, through a public shareholder letter. The warning says failure to share strategy, KPIs, and shareholder return plans ahead of the general meeting could undermine market trust and complicate voting decisions.
✴ Mirae Asset Venture Investment╎After Semifive’s IPO, it sold 3% of its tradable stake and recovered about $20.6 million (₩30 billion). Against a total investment of about $24.9 million (₩36.3 billion), the return multiple is expected to be about three times when including the valuation of the remaining stake, with further recoveries possible as lockups expire.
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How Choi Jin-sik Uses a Private Holding Company |
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⭑ Dividends were paid steadily for 15 years, but the recipients never changed
As SINFAC restructured its governance through a reverse merger, one company that came back into focus was SINFAC Holdings. On the surface, it looked like a holding company, but it had long been described as closer to a cash management vehicle for Chairman Choi Jin-sik’s family.
Disclosures show that from 2010 to 2024, the company paid a total of $25.7 million (₩37.5 billion) in dividends over 15 years. Except for one year in 2015, between $6.9 million and $34.3 million (₩10 billion to ₩50 billion) was paid out almost every year. In 2023, it even paid $2.1 million (₩3 billion) in dividends despite posting a net loss of $13.2 million (₩19.2 billion). This makes it look less like dividends driven by performance and more like a structure that required dividends to be paid.
As for who received the money, Choi Min-chan, the eldest son, has been the largest shareholder since 2010, and his dividends over this period are estimated at about $10.2 million (₩14.8 billion). All other shareholders were also family members.
⭑ Making money through internal transactions, then sharing it within the family
The structure itself has drawn further criticism. Before the merger, the shareholding of SINFAC Holdings was Choi Min-chan 39.6%, Chairman Choi Jin-sik 33.6%, Choi Min-young 16.5%, and Yoon Yeon-soo 10.3%. It was a typical family company with no outside shareholders. The source of the dividends makes this even clearer. Each year, 70% to 80% of operating revenue came from internal transactions. In 2024, internal transactions accounted for $88.7 million (₩129.3 billion) out of total revenue of $121.0 million (₩176.3 billion), or 73.3%. In 2023, the ratio rose to 85.8%.
In other words, money was earned within the SINFAC group, pooled at SINFAC Holdings, and then redistributed to the family as dividends. Dividends are not inherently problematic, but in this case, the term shareholder return does not seem to fit well.
⭑ Money lost in real estate investments, with the burden shifted to the listed company
SINFAC Holdings was not only paying dividends but also pursued aggressive real estate investments. UL Development, Harang M&D, and BOB Planning are representative cases, all of which were directly or indirectly controlled by SINFAC Holdings or Chairman Choi. The largest investment was in UL Development, where a total of $49.2 million (₩71.7 billion) was injected through capital increases and loans.
As of 2024, UL Development had negative equity of $2.4 million (-₩3.5 billion), placing it in full capital impairment. Even after impairing $14.3 million (₩20.8 billion) in receivables deemed unrecoverable, another $49.2 million (₩71.7 billion) was added during the same period. If all of this is ultimately written off, losses could approach $68.6 million (₩100 billion).
Harang M&D followed a similar path. A total of $62.1 million (₩90.5 billion) was loaned, but $13.2 million (₩19.2 billion) in long-term loans was never recovered. Another $9.1 million (₩13.2 billion) loaned to BOB Planning also remained as a loss. Both companies fell into full capital impairment and transferred control in 2023, leaving $22.2 million (₩32.4 billion) unrecovered.
The issue does not end there. Through the merger, SINFAC Holdings disappeared, and the burden of these failed real estate investments was transferred directly to the listed company, SINFAC. As a result, ordinary shareholders are now bearing the consequences of investment failures led by Chairman Choi’s family.
In addition, SINFAC invested $8.9 million (₩13 billion) in a newly established private equity fund founded by Chairman Choi’s son-in-law. This was the fund’s first project fund, and SINFAC’s commitment accounted for about one-third of total capital commitments. Given that SINFAC’s net profit as of the third quarter last year was $11.0 million (₩16 billion), the amount is not small.
This is why investment industry insiders say it is rare for a first-time fund run by a manager with no track record to receive such a large commitment.
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KB Securities targets third straight crown, from unicorns to deep tech |
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⭑ Balance strategy between big deals and mid-sized deals
KB Securities has entered the race to maintain its top position in the IPO market in 2026. After securing large deals such as LG CNS last year and ranking first for two consecutive years, the firm has outlined a strategy to cover a broad range from unicorns to deep-tech small and mid-sized companies. The approach is to widen the field to solidify its lead.
The core of this year’s roadmap is balancing mega-sized deals with mid-sized and smaller transactions. Rather than focusing only on increasing offering sizes, KB Securities aims to secure both league-table volume and deal value through a portfolio spanning multiple industries. The most anticipated candidate is Musinsa, the country’s largest fashion platform, targeting decacorn status with a valuation of about $6.9 billion (₩10 trillion).
Upstage, an AI company with its in-house LLM Sola, is also seeking to prove a valuation of more than $686 million (₩1 trillion). Deep-tech companies such as autonomous driving software developer StradVision and EV charging solutions provider Chaevi are also waiting to go public. Autonomous A2Z and SB Sunbo are preparing to join the follow-up lineup. Yoo Seung-chang, head of ECM, said the goal is a third straight year at No.1, adding that balancing large and small deals will be key.
⭑ K Bank setback and valuation controversy
The path is not entirely smooth. Being dropped as an underwriter for K Bank, considered one of this year’s biggest IPO candidates, was a clear setback. While KB Securities served as a joint underwriter during the K bank’s second IPO attempt, it failed to secure a role in the third try.
As a result, market attention has shifted to the Musinsa IPO. How KB Securities explains the gap between valuations formed in the pre-IPO market and the company’s target valuation will be critical. Failure to resolve concerns over overvaluation could weigh on performance building.
Stricter technology-special listing standards following the Pado case also add uncertainty. If deep-tech companies in areas such as autonomous driving and AI face delays during the review process, this could affect second-half results. With total IPO fundraising this year estimated at about $4.9 billion (₩7.2 trillion), how these variables are managed will be closely watched.
⭑ Differentiation through a total IB solution
KB Securities is strengthening its due diligence capabilities under Yoo’s leadership. It has adopted a principle of rigorous verification, reviewing everything from governance to overall business operations. The firm aims to examine companies at a research-level depth, rather than relying only on document reviews.
Another differentiator is its total IB solution, combining its No.1 position in DCM with ECM. The strategy is to support the entire funding process before and after listing at the group level, not just the IPO itself.
Ultimately, the key question is how smoothly large unicorns such as Musinsa and Upstage complete their listings. Overcoming valuation controversies and intensifying competition among underwriters will determine whether KB Securities can truly claim the crown for a third consecutive year.
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📦Survival strategies amid disruption╎Naver AI, Coupang logistics
With the e-commerce market share gap between Naver and Coupang narrowing to two percentage points, a potential shift in dynamics is being discussed following Coupang’s data leak incident. Naver is strengthening personalized shopping by upgrading AI-based recommendation and advertising systems using accumulated search and commerce data. Coupang is expanding rocket delivery coverage by leveraging its nationwide logistics network of more than 100 facilities. |
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🤔Reassessing listings╎KOSPI, the start of verification
An analysis of 16 companies that moved from KOSDAQ to KOSPI over the past decade shows that half saw their share prices fall on the first trading day, and 81 percent declined within a year. While passive fund inflows tend to support prices immediately after inclusion, downward pressure often increases around three months later as growth premiums adjust. The move is symbolic of scale, but stock performance ultimately depends on industry cycles and earnings. |
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🤖 Robots for housework╎Home robot CLOi unveiled
LG Electronics unveiled its AI home robot LG CLOi at CES 2026, presenting a household-focused agent that manages the entire home beyond chores. Equipped with two arms and fingers, CLOi controls appliances and assists daily life, serving as a hub that connects LG appliances into a single AI ecosystem. LG aims to realize a zero-labor home and extend AI experiences beyond residences to vehicles, offices, and commercial spaces. |
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📈How far can it go╎KOSPI 5,000 expectations, KOSDAQ challenges
In early 2026, the KOSPI index surpassed 4,300 and rose toward 4,500, fueling expectations of breaking 5,000 within the year. KOSDAQ, despite being a core venue for venture capital and productive finance, shows weaker momentum due to distrust and governance risks. If securities firms can foster credible KOSDAQ champions, a delayed spotlight on KOSDAQ after the KOSPI rally remains possible. |
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🪙Invisible money╎Financial regulators move to crypto exchanges
Officials and former staff from the Financial Services Commission and Financial Supervisory Service continue to move to crypto exchanges in 2026, following a similar trend in 2024. Dunamu and Bithumb are attracting regulatory specialists with high pay and benefits, using gaps outside the traditional financial institution framework. Tensions are rising between exchanges preparing for institutionalization and regulators concerned about talent outflows, reviving debates over revolving-door practices. |
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⏱️Verification Successful?╎Evidence Gathering Gains Momentum in Yeongpoong–Korea Zinc U.S. Investment Allegations
In connection with allegations raised by Yeongpoong over Korea Zinc’s alleged overpriced acquisition of Igneo Holdings, a U.S. appellate court has rejected a request to halt evidence submissions. The background of acquiring a newly established company that was in a state of capital impairment for several hundred billion won, along with the valuation process and the execution of funds, is now being examined through U.S. court procedures. With procedural delays not accepted even at the appellate stage, the shareholder derivative lawsuit is clearly moving into a phase focused on uncovering the substance of the key issues. |
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AI Vera Rubin, born from Jensen Huang’s vision |
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Core platform architecture presented
Vera Rubin steps back from the race over how fast the chip is and instead puts forward a system-level approach that bundles all elements required for AI computation into a single architecture.
Nvidia said the Rubin GPU delivers five times higher performance in AI inference and 3.5 times higher performance in training compared with Blackwell, while token generation costs have been reduced to about one-tenth of the previous generation. The emphasis is not simple performance gains, but a structural shift in the cost of running AI.
This was paired with an extreme co-design architecture that integrates the Vera CPU, Rubin GPU, NVLink 6 switch, ConnectX-9 SuperNIC, BlueField-4 DPU, and Spectrum-6 Ethernet switch under a single design philosophy. Nvidia made it clear that the benchmark for AI infrastructure is not the specifications of individual components, but how efficiently they operate as a unified system.
HBM4 as a baseline, not an option
The Rubin GPU comes standard with eight stacks of HBM4 memory. Memory bandwidth is disclosed at 22 terabytes per second, with capacity at 288 gigabytes. Compared with Blackwell B200’s 8 terabytes per second and 192 gigabytes, this represents roughly 2.75 times higher bandwidth and 1.5 times larger capacity.
More importantly, these specifications are presented as a prerequisite of the Rubin architecture itself, not as optional configurations or future upgrades. Through this announcement, Nvidia underscored that in next-generation AI platforms, memory bandwidth and capacity are as critical as raw compute performance.
Launch timeline and deployment targets disclosed together
Nvidia said Vera Rubin has already entered full production and that Rubin-based products will be supplied through partners starting in the second half of 2026. This was positioned clearly as a commercial rollout, not a prototype or research-stage project.
The company also named AWS, Google Cloud, Microsoft, and Oracle Cloud Infrastructure as the first cloud providers to launch Vera Rubin-based instances in 2026. This lineup signals that Vera Rubin is designed for immediate deployment in commercial data centers, not for limited experimental use.
The message Nvidia aimed to deliver at CES 2026 is straightforward. Vera Rubin is not “a slightly faster GPU,” but Nvidia’s answer to how AI data centers should be architected going forward. It reads less like a performance upgrade and more like a declaration that the industry is moving into the next phase beyond raw speed competition.
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The structure behind one person controlling a stock price |
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✴ Governance risk
Governance risk is a structural risk where investors can lose money even when a company’s business performance is strong. Companies that earn money but see little share price movement often start from this problem. Owners may hold small equity stakes but retain strong control, while the costs of capital increases or succession are repeatedly passed on to minority shareholders.
Even if the process is legally valid, shareholder value is effectively diluted.
The problem does not end there. Company funds can be siphoned off through related-party transactions, internal deal allocations, or undervalued asset transfers. In some cases, accounting figures are adjusted to make weak companies appear healthy.
Investors buy shares based on distorted information, only to see the stock price collapse later. In such structures, owners are incentivized to extract short-term gains, while investment in R&D and long-term growth is pushed aside, gradually weakening competitiveness. Over time, both shareholders and owners lose.
A concentrated ownership structure is not always bad. With a capable and ethical owner, it can enable fast decision-making and long-term strategy. But without transparency and accountability, it quickly turns toxic.
For investors, it is not enough to judge whether the business looks good. The first thing to examine is how the owner uses shareholder capital. When control far exceeds ownership, or capital raising and related-party deals are repeated, share prices rarely rise as expected. |
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