"KOSPI Plunge Seen as Opportunity... Stocks Being Scooped Up by Korea's Wealthy"

Intensive Buying in Samsung Electronics Preferred and SK hynix
Reflecting Expectations for Special Dividends and Industry Recovery
Interest Also Expands to K-Beauty and Biotech Stocks

Despite concerns about the so-called "semiconductor peak theory," high-net-worth individuals have actually been repurchasing major domestic semiconductor stocks. In particular, investors with an average account balance of more than 1 billion won made a net purchase of approximately 49 billion won in Samsung Electronics Preferred Shares and SK hynix over the course of one week, indicating that they view the recent market adjustment as a buying opportunity. Funds have poured into Samsung Electronics Preferred Shares, aiming for dividends following the announcement of a large-scale special dividend. At the same time, investment sentiment for SK hynix is rapidly recovering, driven by expanded shareholder returns and robust global demand for artificial intelligence (AI).

Image to aid understanding of the article. Pixabay

368 Billion Won Concentrated in Samsung Electronics Preferred Shares... Top Net Buy

According to Korea Investment & Securities on August 31, customers with an average account balance of more than 1 billion won made net purchases of Samsung Electronics Preferred Shares worth 36.82 billion won from August 21 to 27, as reported by The Korea Economic Daily. This is by far the largest net purchase among all stocks.

During the same period, they also purchased 12.02 billion won worth of SK hynix, ranking second. The combined net inflow into just these two stocks reached 48.84 billion won, or approximately 49 billion won.

The strong inflow of funds into Samsung Electronics Preferred Shares is attributed to their dividend appeal. On August 21, Samsung Electronics announced a special dividend plan worth 30 trillion won. Preferred shares are more attractive than common shares in terms of dividends, therefore, capital targeting the special dividend flowed into the preferred shares.

Samsung Securities estimates Samsung Electronics’ dividend yield this year at 3.9% for common shares and 5.3% for preferred shares. The market believes expectations for large-scale cash returns have also influenced the supply and demand for preferred shares.

Betting on Industry Conditions... SK hynix Added Back to Shopping Lists

Investor sentiment for SK hynix also appears to be recovering. After recently announcing a large-scale shareholder return policy, SK hynix has purchased about 650,000 shares per trading day in the open market since August 20.

Image to aid in understanding the article. The Asia Business Daily DB

Additionally, optimism about the global AI industry played a role. On August 26 (local time), Nvidia reported second-quarter results exceeding market expectations, boosting the outlook for continued demand for AI semiconductors. The buying by high-net-worth investors in SK hynix is seen as reflecting these positive industry expectations.

SK Square also ranked seventh with a net purchase of 4.35 billion won. Along with SK hynix, funds flowed into stocks with strong ties to the semiconductor and AI asset value themes.

Silicon Two and Biotech Also in Focus

The buying trend among high-net-worth individuals was not limited to semiconductor stocks. Silicon Two, a K-beauty distribution platform, ranked third overall with net purchases of 6.75 billion won. On August 27, Glenwood Credit sold its entire 6.72% stake through a block deal, easing concerns about a potential overhang of large-scale shares. Earlier, on August 18, Silicon Two raised 300 billion won from global private equity fund CVC Capital, heightening expectations for overseas business expansion.

There was also buying of pharmaceutical and biotech stocks. Samsung Epis Holdings saw net purchases of 5.36 billion won, while Alteogen recorded 5.07 billion won. Among automobile-related stocks, Hyundai Mobis saw net purchases of 4.35 billion won, and Hyundai Autoever recorded 2.27 billion won.

This wave of buying indicates that, despite worries about the semiconductor sector, high-net-worth individuals are placing more emphasis on shareholder returns and potential profit improvements at the individual company level, rather than on industry prospects alone.

This content was produced with the assistance of AI translation services.