SOUTH KOREA FIRST TO MARKET

研报英文原文证据摘录

SOUTH KOREA FIRST TO MARKET

Asia Pacific Equity Research

South Korea First to Market 26 June 2026

Top Stories

Korea Insurance (MW Kim/Jihyun Cho)

Whole (point of) Life: How Legacy Wealth Transfer is Driving Life Insurance Demand

Korea’s asset-rich but cash-poor baby boomers are entering a critical wealth transfer phase, creating a structural opportunity

for life insurers. With wealth highly concentrated in property, limited financial assets among the next generation, and inheritance

tax rates exceeding 40% on assets above W1B (US$650k), we expect demand for tax-efficient inheritance planning to rise

materially. Whole life policies, with death benefits paid to beneficiaries, are one of the few practical financial tools available in

Korea for this purpose. We therefore expect life insurers to shift product focus back towards whole life from health insurance,

supporting CSM balance growth over the next 5 to 10 years. Samsung Life looks best positioned, given its brand, distribution

strength and HNWI access, while KB Financial and Shinhan Financial could also benefit through their life insurance arms.

Memory Market Update (Jay Kwon)

Read-through from MU’s 3QFY26 results; granular updates on LTAs bode well for sector valuation

re-rating

Granular updates on LTA. MU (OW, covered by JPM’s Harlan Sur) disclosed 16 SCAs (strategic customer agreements) with

granular details including: 1) The floor and ceiling prices are determined based on previous peak level and 2Q26 memory price;

2) LTAs are mostly structured on 5-year terms (CY26-CY30) with a take-or-pay agreements; 3) The minimum value of the 14

LTAs using the floor prices amount to US$100bn; 4) MU expects to receive cash deposits and financial commitments of $22bn;