Foreign Ownership of Samsung Electronics Hits 17-Year Low

Amid the recent continued sell-off of semiconductor stocks by foreigners, the foreign ownership rate of Samsung Electronics shares recorded the lowest level in about 17 years since the global financial crisis.

On the other hand, retail investors’ enthusiasm for ‘debt-vesting (investing with borrowed money)’ in semiconductor stocks has rather intensified, with the margin loan balance increasing to a record high this month.

According to the Korea Exchange on July 7, the foreign ownership rate of Samsung Electronics shares was tallied at 46.69% as of the previous day, on July 6.

This is the lowest level in about 17 years since the rate was 46.67% on July 23, 2009, when investment sentiment was dampened in the aftermath of the global financial crisis.

The foreign ownership rate of Samsung Electronics reached 52.33% at the end of last year, but gave up the 50% mark on March 4 following the outbreak of war between the United States and Iran, and was pushed below the 49% range on March 26.

It then turned upward and recovered to 49.6% on May 6, but reversed to a downward trend, falling below 48% on June 4, and after giving up even the 47% mark at the end of June, it continues to draw a downward curve to date.

The ownership rate of SK hynix is also on a downward trend. As of the previous day, the foreign ownership rate of SK hynix was 50.17%, marking the lowest in 3 years and 2 months since the 50.10% recorded on May 19, 2023.

This is interpreted as the result of foreigners continuing their net selling trend for Samsung Electronics and SK hynix over a long period.

Foreigners net sold Samsung Electronics and SK hynix for 13 consecutive trading days, beginning on June 19 and ending on July 7. During the period beginning on June 19 and ending on July 7, the net selling amount of Samsung Electronics by foreigners was 15.086 trillion won (about $10.05 billion), and SK hynix was 20.75 trillion won, making the net selling volume larger for SK hynix.