[Edaily Marketin Reporter Hur Jieun ] Amid rising volatility in the domestic stock market and a continued exodus of retail investors, BlackRock, the world’s largest asset manager, has been steadily acquiring stakes in South Korean listed companies since the start of August. The firm appears to be pursuing a diversified strategy that goes beyond simply buying oversold stocks, targeting sectors such as AI (artificial intelligence) power infrastructure, value-up (shareholder returns), and biotech and platforms.

According to the Financial Supervisory Service’s electronic disclosure system on the 12th, BlackRock has filed disclosures indicating holdings of 5% or more after acquiring new stakes or purchasing additional shares in nine South Korean listed companies since the start of August. The companies include ShinhanFinancialGroup Co.,Ltd.(055550), DB INSURANCE(005830), HD HYUNDAI ELECTRIC(267260), HyundaiEngineering&Construction(000720), NAVER(035420), Kakao(035720), Yuhan(000100), Alteogen Inc.(196170), and HLB INC.(028300).

The securities industry interprets BlackRock’s recent buying spree as a textbook portfolio rebalancing at both the passive and active fund levels, which broadly incorporates △high-dividend, undervalued (value-up) stocks △beneficiaries of global infrastructure and AI power grids △and growth stocks that have been oversold.

Incorporating

‘Value-Up’ Stocks like ShinhanFinancialGroup Co.,Ltd. and DB Insurance… Targeting ‘AI Power Grid’ Stocks

A notable development is the additional buying momentum targeting financial and insurance stocks. Following an increase in its stake in DB INSURANCE from 5.06% to 6.08% on the 4th, BlackRock expanded its stake in ShinhanFinancialGroup Co.,Ltd. by more than 1 percentage point, from 6.13% to 7.14%, on the 11th. This move is interpreted as a high evaluation of the companies’ policies to expand shareholder returns—such as share buybacks and cancellations—and their robust ability to maintain solid earnings, in line with the government’s corporate value-up program.

Driven by demand for AI data centers, BlackRock also added beneficiaries of power infrastructure to its portfolio. This month, BlackRock filed new disclosures regarding its stakes in HD HYUNDAI ELECTRIC (5.01%) and HyundaiEngineering&Construction (5.01%). This marks the first time in the past decade that BlackRock has disclosed holdings of more than 5% in either of these companies. Analysts suggest that BlackRock, which manages global ETFs and large-scale infrastructure funds, anticipated rising operating profit margins for South Korean power equipment manufacturers due to global power grid shortages, as well as momentum from overseas nuclear power and plant projects.

Included

K-Bio and NekaO, but… Kakao Seen as a “Dilution” Move

Investments in pharmaceutical, biotech, and leading platform stocks also continued. BlackRock newly acquired a stake in Alteogen Inc. (5.03%) and significantly increased its holdings in Yuhan (5.07% → 6.50%), HLB (6.05% → 7.15%), Naver (6.05% → 7.09%), and Kakao (5.01%).

The decision to bet on growth stocks despite ongoing concerns over global monetary tightening is interpreted as a result of focusing on individual momentum and price attractiveness. Alteogen Inc. has surpassed 10 trillion won in cumulative technology transfer agreements through “ALT-B4 (Hybrozyme),” a platform technology for subcutaneous (SC) formulation conversion, and Yuhan also achieved improved earnings thanks to the global success of Lecraza. There is also speculation that BlackRock bet on HLB’s new drug momentum by making additional purchases in August, following its purchases in June.

However, some analysts suggest that these purchases of certain stocks appear to be largely “averaging down.” BlackRock’s average purchase price for Kakao is around 48,000 won, representing a loss of nearly 20% compared to Kakao’s previous day’s closing price (40,700 won). This means that even BlackRock, a global asset management firm, has been unable to avoid the extreme volatility in the domestic stock market recently.

A financial investment industry official explained, “BlackRock’s August purchases of domestic stocks were less a bet on the Korean market as a whole and more a process of separating the wheat from the chaff, focusing on stocks with clear structural growth momentum in AI infrastructure and shareholder returns.”