Samsung Electronics, Retail Investors' Influence Grows

Net Purchase of 147.05 Million Shares This Year
Stake Soars to 6% Range
Contrary Movement to Institutional Selling Pressure

[Asia Economy Reporter Park Jihwan] It has been revealed that individual investors' influence in Samsung Electronics, the leading stock in the KOSPI, is on par with that of domestic institutional investors. While institutions have sold tens of millions of Samsung Electronics shares this year, causing their stake to fall to the 7% range, individuals are estimated to have purchased over 100 million shares, raising their stake to the 6% range.

According to Samsung Electronics and the financial investment industry on the 17th, as of the end of last year, the shareholding ratio of domestic institutional investors excluding the National Pension Service was 8.7%. Special related parties such as major shareholders held 21.2%, the National Pension Service 10.6%, and individuals 3.6%. Foreign investors accounted for 55.9%.

However, the trend of domestic institutional investors reducing their Samsung Electronics holdings has been clear this year. From the beginning of the year until the 16th, institutions net sold a total of 73 million Samsung Electronics shares. This corresponds to 1.2% of the total number of Samsung Electronics shares. Currently, the estimated shareholding ratio of domestic institutions in Samsung Electronics is 7.5%, down 1.2 percentage points from the end of last year.

On the other hand, individuals net purchased 147.05 million shares. During the same period, the individual investor shareholding ratio appears to have risen from 3.6% to 6.1%. This means that individuals can now have a presence in determining the direction of Samsung Electronics' stock price comparable to that of institutions.

Individual investors are continuously increasing their influence across the entire domestic stock market. Through strong net buying, they continue to supply abundant liquidity to the stock market, supporting the market's upward trend. In fact, individual investors have net purchased stocks worth 43.5364 trillion won in the KOSPI market from the beginning of the year until the day before yesterday, leading the index. Foreigners and institutions net sold 26.8742 trillion won and 19.7144 trillion won, respectively.

A securities industry official explained, "The net buying by individuals triggered by the Donghak Ant Movement has significantly increased liquidity in the stock market," adding, "However, since many conservative investors still perceive 'stocks as risky,' investment funds have concentrated on Samsung Electronics, which is the most popular stock."