Recent Block Deal Sale on HD Hyundai Marine Solution and Headwinds on Korean Shipbuilding Sector

• On 19 February, KKR sold 2 million shares (4.49%) stake in HD Hyundai Marine Solution at 147,500 won (9.3% discount to the previous day's closing price), representing 295 billion won.

• Therefore, we would argue that these major shipbuilding shares in Korea (such as HD Hyundai Heavy Industries and Hanwha Ocean) could face more difficult headwinds in the coming months.

• KKR's timing of its block deal sale of HD Hyundai Marine Solution also reflects its attempt to partially sell its shares while the stock price is still at lofty levels.