The KOSPI extended its losses to slip below the 6,700 level, hit by a chill sweeping through the semiconductor sector. Samsung Electronics (005930.KS) plunged more than 8% on disappointment-driven selling following its shareholder-return announcement, while SK hynix (000660.KS) reversed earlier gains to turn lower, adding downward pressure on the index.
As of 1:17 p.m. on the 24th, the KOSPI stood at 6,700.48, down 212.47 points, or 3.07%, from the previous session, according to the Korea Exchange. The index opened at 6,881.07, down 31.88 points, or 0.59%, and then widened its losses. Retail investors alone were net buyers of 2.62 trillion won ($1.9 billion), while foreign and institutional investors sold 2.86 trillion won and 906.8 billion won, respectively, dragging the index down.
The decline reflected a broad-based plunge in top semiconductor stocks by market capitalization. At the same time, Samsung Electronics traded at 256,500 won, down 25,000 won, or 8.88%, from the previous session. Unlike Samsung Electronics, SK hynix had been rising but lost steam and turned lower, trading at 1.698 million won, down 32,000 won, or 1.85%, at the same time. Losses widened across Samsung Group stocks. Samsung Electronics preferred shares (-7.63%), Samsung Life Insurance (-10.65%) and Samsung C&T (-8.34%) all fell sharply, while Samsung Electro-Mechanics hovered near flat.
After the market closed on the 21st of this month, Samsung Electronics announced a shareholder-return plan worth 90 trillion to 110 trillion won for this year. It plans to pay about 30 trillion won in cash dividends, including its regular third-quarter dividend, while the specific method for returning the remaining 60 trillion to 80 trillion won will be decided by its board in January next year. However, some in the market had expected shareholder returns of as much as 200 trillion won before the announcement, so the gap between the actual plan and those expectations came into focus, prompting a wave of selling.
Kim Ki-baek, an analyst at Shinhan Securities, said, "Samsung Electronics' shareholder-return plan fell short of market expectations and was seen as a spent catalyst." Kim added, "As funds leaving Samsung Electronics flowed in, secondary battery and materials, parts and equipment stocks on the KOSDAQ market rallied together."
Meanwhile, the KOSDAQ, which opened at 804.27, up 2.33 points, or 0.29%, from the previous session, extended its gains. At the same time, the KOSDAQ stood at 814.26, up 12.32 points, or 1.54%, from the previous session. Retail investors alone were net sellers of 165.5 billion won, while foreign and institutional investors bought 127.9 billion won and 45.1 billion won, respectively.
Top stocks by market capitalization were mixed. Alteogen (0.23%), Ecopro (5.01%), Ecopro BM (7.39%) and Pharma Research (3.50%) were higher, while Rainbow Robotics (-2.64%), Wonik IPS (-1.02%) and HLB (-1.55%) declined.
