Samsung Electronics and SK Hynix, the twin leaders of the semiconductor industry, saw their stock prices surge significantly after announcing large-scale shareholder return plans, but are now taking a breather today. Analysts attribute this pullback to profit-taking following the sharp short-term rally. The securities sector interprets these shareholder return initiatives as a sign of confidence in the industry’s outlook. Attention is focused on whether these moves will serve as a catalyst not only for future stock price re-rating but also for resolving the chronic undervaluation plaguing the sector.
According to data from the Korea Exchange on the 24th, Samsung Electronics’ stock price at 2:20 p.m. today stood at 258,500 won, down 23,000 won (8.17%) from the previous day. This marks the first decline in three trading sessions for Samsung Electronics.
SK Hynix’s upward momentum has also cooled. As of this moment, SK Hynix shares are trading at 1,691,000 won, down 39,000 won (2.25%) from the previous day. The stock opened with a bullish trend in the early session above 1% but turned bearish after 11 a.m. On the 20th, the day after SK Hynix unveiled its large-scale shareholder return plan, its shares rose by 191,000 won from the prior day, recovering to the 1.6 million won range.
Companies with business or equity ties to Samsung Electronics and SK Hynix also declined. Samsung Life Insurance fell over 11%, Samsung C&T dropped more than 8%, and SK Square slipped by around 4% as of this moment.
ETFs (exchange-traded funds) tracking major semiconductor stocks are also broadly weak. As of now, 'KODEX Semiconductor' is down 3.31%, 'ACE AI Semiconductor TOP3+' is down 3.28%, 'TIGER Semiconductor' is down 3.17%, and 'SOL AI Semiconductor TOP2 Plus' is down 2.90% compared to the previous day.
Today’s market appears to have seen short-term profit-taking centered on major semiconductor stocks that had recently enjoyed a strong rally.
Industry observers believe that the large-scale shareholder return plans announced by Samsung Electronics and SK Hynix will serve as powerful momentum for their stock prices. According to securities firms, Samsung Electronics is expected to disclose additional return methods (cash dividends, share buybacks, and cancellations) and timing in October, with precise scale and implementation details to be officially announced in January next year. SK Hynix plans to specify the scale and methods of its additional returns—including fixed and special dividends—during its third-quarter earnings announcement.
Kim Dong-won, a researcher at KB Securities, stated, “Assuming Samsung Electronics applies its existing shareholder return policy (50% of free cash flow) as is, it will generate over 600 trillion won in shareholder return resources over the next three years, expanding the scale of returns by more than four times compared to 2024–2026.” He added, “The simultaneous expansion of profit growth and shareholder returns will mark a turning point for Samsung Electronics, repositioning it from a cyclical stock sensitive to economic conditions into a long-term compounding investment asset.”
Park Jun-young, a researcher at Hanwha Investment & Securities, noted, “SK Hynix’s 40 trillion won share buyback and cancellation plan can repurchase approximately 3.6% of its outstanding shares based on the closing price of 1.5 million won on the 19th. If all shares are cancelled, EPS (earnings per share) is estimated to rise by about 3.8%.” He further said, “If stock prices continue to rise, the number of shares that can be acquired with the same amount will decrease, increasing the likelihood of early execution of additional share buybacks and cancellations during undervalued periods.”
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