“Foreign investors have left despite the semiconductor boom” ... Samsung’s foreign ownership stake at its lowest since 2008

[Financial News]  Foreign ownership stakes in Samsung Electronics and SK hynix have continued to decline, with Samsung Electronics’ stake falling to levels last seen during the 2008 global financial crisis. Foreign investors’ selling on the KOSPI market has exceeded 197 trillion won this year, while capital outflows have continued despite improved earnings at large-cap semiconductor stocks.

According to the Korea Exchange on the 12th, foreign ownership of Samsung Electronics stood at 46.38% as of the 8th. That was the lowest level in about 18 years and nine months, since 46.35% was recorded on Jan. 11, 2008. It was also similar to the level in December 1998, when the fallout from the International Monetary Fund (IMF) currency crisis was still being felt.
Samsung Electronics’ foreign ownership stake, which climbed as high as 52.40% alongside the KOSPI’s rise early this year, fell below 50% in March due to the conflict in the Middle East. The stake did not recover even as the stock market rose thereafter. It fell to the 48% range in May and the 47% range in July, then dropped to the low 46% range this month.
Foreign ownership of SK hynix also fell below 50%. As of the 8th, the stake stood at 49.59%, at least 5 percentage points below the 54.64% recorded early this year.
SK hynix, whose foreign ownership stake had exceeded 50% since 2023 and reached 56.41% in 2024, has been below 50% since the end of last month. As stakes in Samsung Electronics and SK hynix declined, foreign ownership in the KOSPI electrical and electronics sector also fell from 40.87% at the start of the year to 38.09%.
Samsung Electronics reported record quarterly earnings, with third-quarter operating profit of 107 trillion won, but foreign investors’ selling continued. Analysts in the securities industry say it is difficult to expect foreign buying to return solely because corporate earnings have improved.
Lee Jae-won, a researcher at Yuanta Securities, said, “Market conditions remain such that it is difficult to expect a structural shift in foreign investor flows based solely on strong earnings. Rather than entering the market preemptively based on a prediction of when foreign investors will return, investors should look for actual signs of a shift to buying and respond with phased purchases as selling pressure eases.”


[email protected] Han Seung-gon Reporter