Samsung Electronics' foreign ownership dropped to 46.58% as of July 15, marking the lowest level since July 21, 2009, when it stood at 46.56%. The decline from 52.3% at the beginning of the year follows sustained foreign selling, though stock lending balances have decreased by 6.5% since July 1. Securities analysts attribute the ownership reduction primarily to global passive fund rebalancing rather than negative sector outlook, with Goldman Sachs noting that long-term institutional investors view the recent correction as an opportunity to increase positions.
Samsung Electronics Foreign Ownership Reaches 17-Year Low
According to the Korea Exchange, Samsung Electronics' foreign ownership stood at 46.58% as of July 15. The figure declined steadily from 52.3% at the beginning of the year, reaching the lowest level since July 21, 2009 (46.56%) in approximately 17 years.
In 2009, following the global financial crisis, foreign ownership formed a bottom before buying resumed and the stock rebounded. Over the subsequent year, foreign ownership increased by approximately 3 percentage points, and Samsung Electronics' stock price rose by approximately 18%.
Market observers note the potential for a stock rebound if the current foreign selling phase concludes. Samsung Electronics' stock price corrected more than 30% after reaching 374,500 won during trading on June 19.
Stock Lending Balances Decline for Samsung and SK Hynix
Stock lending balances, classified as potential short-selling volume, show a declining trend. According to the Korea Financial Investment Association, Samsung Electronics' stock lending balance decreased 6.5% (1.5252 trillion won) from 23.3641 trillion won on July 1 to 21.8389 trillion won on July 14.
SK Hynix stock lending balances also declined 19.1% (6.6971 trillion won) from 35.0465 trillion won at the beginning of the month to 28.3494 trillion won on July 14.
SK Hynix Foreign Ownership Falls to 2023 Levels
SK Hynix displays similar patterns. Foreign ownership in SK Hynix recorded 49.77% as of July 14, the lowest level since May 16, 2023 (49.88%). Foreign ownership, which stood at 53.8% at the beginning of the year, declined approximately 4 percentage points due to large-scale foreign net selling.
Market analysts suggest that expanded SK Hynix American Depositary Receipt (ADR) trading could positively impact future foreign ownership increases. After SK Hynix ADR surged 27% on July 14 (local time), foreigners net purchased 740 billion won of SK Hynix on the domestic market, and the stock price rose more than 10%.
Goldman Sachs and Barclays Maintain Positive Memory Sector Outlook
The securities industry analyzes that recent foreign reductions in Samsung Electronics and SK Hynix stakes resulted more from global passive fund rebalancing than negative outlook on the domestic semiconductor sector. Global investment banks maintain positive views on the memory market.
Goldman Sachs stated that "recent foreign selling is analyzed as mostly due to passive funds and program trading," adding that "hedge funds took profit based on momentum, but long-term institutional investors did not participate in aggressive selling and view the recent correction as an opportunity to increase positions."
The firm continued that "while some worry about fourth-quarter DRAM price adjustments and HBM4 cycle peaks, equipment shortages limit supply expansion, and the favorable memory market outlook is expected to continue for a considerable period," adding that "the recent stock price correction is judged to result from excessive supply-demand shocks rather than market deterioration."
British investment bank Barclays forecasts continued memory supply shortages and presented a target price of 330 dollars for SK Hynix ADR. Analyst Simon Coles projected that "DRAM supply shortages will intensify further in 2027, and improvement will be limited even in 2028," stating that "SK Hynix will continue meaningful growth from now on."
He evaluated that "memory stocks are excessively undervalued" and the current low valuation is difficult to sustain.
FAQ
What is Samsung Electronics' current foreign ownership level?
Samsung Electronics' foreign ownership stood at 46.58% as of July 15, the lowest level since July 21, 2009 (46.56%).
Why did foreign ownership in Samsung Electronics and SK Hynix decline?
Securities analysts attribute the decline primarily to global passive fund rebalancing rather than negative outlook on the semiconductor sector. Goldman Sachs stated that recent foreign selling resulted mostly from passive funds and program trading.
What happened after Samsung Electronics' foreign ownership reached a low in 2009?
After foreign ownership formed a bottom in 2009 following the global financial crisis, buying resumed over the subsequent year. Foreign ownership increased by approximately 3 percentage points, and Samsung Electronics' stock price rose by approximately 18%.
