Preferred Shares of Five Major Korean Holdcos - Likely to Close the Gap Further With Common Shares

• In this insight, we discuss the preferred shares of five major holding companies and how the share price gap relative to their common counterparts could decrease.

• There is a relatively easy way to improve shareholder value of these holding companies which is to cancel the entire preferred shares that trade at discount to their common counterparts.

• The common shares of these five companies have experienced an average share price appreciation of 33.2% YTD versus 28.7% appreciation for their preferred shares counterparts.