Lee Jae-yong's Lottery with '60,000 Electronics'... KOSPI Settles at 2520 Level

[Image source=Yonhap News]

[Asia Economy Reporter Lee Seon-ae] As individuals are realizing profits by selling about 130 billion KRW worth of stocks, foreign investors have also turned to selling, causing the KOSPI to continue a steady, subdued market without a strong rise.

As of 2 PM on the 12th, the KOSPI is slightly up by 0.04% from the previous trading day, standing at 2524.74. The index reached an intraday high of 2533 at 9:06 AM and an intraday low of 2514 at 9:53 AM. Since then, it has been fluctuating within a narrow range.

At this time, individuals are net selling about 132.9 billion KRW. Foreign investors have also switched to selling, offloading 45.6 billion KRW. Only institutions are net buying, purchasing about 152.6 billion KRW.

Top market capitalization stocks are also showing mixed trends. Samsung Electronics (0.67%), led by Vice Chairman Lee Jae-yong’s pardon, along with SK Hynix (0.43%) and LG Chem, are slightly rising. Meanwhile, LG Energy Solution (-2.75%) and Kakao (-1.43%), which had recently been rebounding, are declining.

In particular, Samsung Electronics has returned to the 60,000 KRW level, buoyed by the news of Vice Chairman Lee Jae-yong’s reinstatement. On this day, President Yoon Suk-yeol stated, "The subjects and scope of the pardon were carefully decided after broadly gathering opinions from various sectors to overcome the difficult economy," and granted special pardons and reinstatements to four major business figures, including Samsung Electronics Vice Chairman Lee Jae-yong and Lotte Group Chairman Shin Dong-bin. Following this, Vice Chairman Lee, who was serving a 2.5-year prison sentence confirmed in the National Pension scandal and was paroled in August last year, can now fully engage in management activities. Although he completed his sentence last month, he had been restricted from employment for five years and thus unable to participate in management. Vice Chairman Lee expressed his intention to "work hard for the national economy." Along with the news of his reinstatement, Samsung Electronics’ stock price also showed a rise of over 1%.

Han Ji-young, a researcher at Kiwoom Securities, diagnosed, "As short-term profit-taking volumes are emerging, today’s index ceiling is limited, showing a price movement that is a pause for breath."

Park Kwang-nam, a researcher at Mirae Asset Securities, said, "The rise of Samsung Electronics due to Vice Chairman Lee Jae-yong’s pardon helped the KOSPI, but since it has risen significantly from the low point, it is not unusual for profit-taking volumes to appear at any time. Considering that Monday is a holiday and the market will be closed, the KOSPI is expected to show a mixed trend within a limited box range."