13 Samsung Electronics Executives Including Jeon Young-hyun on US Business Trip Make Large-Scale Stock Purchases... Background Draws Attention

Concentrated Purchase of About 20,000 Shares from the 11th to 19th
Amounting to 2.02744 Billion KRW
Interpreted as a Commitment to 'Responsible Management'
Rising Expectations for Positive Developments Related to HBM

It has been confirmed that Jeon Young-hyun, Head of the Device Solutions (DS) Division (Vice Chairman) at Samsung Electronics, along with other Samsung Electronics executives, intensively purchased the company’s shares around mid-month while seeking new opportunities in the semiconductor business in the United States, drawing industry attention to the background of this move.

According to the Financial Supervisory Service’s electronic disclosure system on the 20th, 13 Samsung Electronics executives purchased a total of 26,430 shares of the company between the 11th and 19th, amounting to 2.02744 billion KRW. Notably, executives responsible for the semiconductor business in the DS Division accounted for more than half of the shares purchased.

Vice Chairman Jeon bought 5,000 shares on the 13th at 75,200 KRW per share, totaling 376 million KRW. On the same day, Nam Seok-woo, President of Manufacturing & Technology at Samsung Electronics’ DS Division, purchased 1,200 shares at 75,200 KRW per share and additionally bought 800 shares at 78,800 KRW per share on the 17th. The total purchase amount reached 153.28 million KRW. The day before, Lee Jung-bae, President of the Memory Business Division, bought 3,800 shares at 75,800 KRW per share (totaling 288.04 million KRW), and on the 14th, Choi Si-young, President of the Foundry Business Division, purchased 1,000 shares at 75,800 KRW per share, amounting to 75.8 million KRW. Earlier, Song Jae-hyuk, Chief Technology Officer (CTO) and Head of the Semiconductor Research Institute (President), bought 2,300 shares on the 11th for 179.17 million KRW.

Adding the 19,490 shares purchased for 1.45068 billion KRW by seven executives including Noh Tae-moon, President of the Mobile Experience (MX) Division, between the 3rd and 7th, a total of 20 Samsung Electronics executives bought about 50,000 shares worth approximately 3.5 billion KRW this month alone. This equates to one executive buying Samsung Electronics shares worth 175 million KRW per day. This trend is expected to continue until the end of the month. As a result, Samsung Electronics’ stock price rose 1.75% the previous day, closing at 81,200 KRW per share.

In the securities and industry sectors, these purchases of company shares by Samsung Electronics executives are being interpreted as a kind of ‘signal.’ The primary interpretation is that it demonstrates a commitment to ‘responsible management.’ By directly purchasing company shares, they sent a message promising mid- to long-term growth and responsible management by pushing the company’s stock price, which had been hovering in the 70,000 KRW range, into the 80,000 KRW range. This interpretation gains strength in conjunction with Samsung Electronics’ global strategy meetings underway by division, starting with DX on the 18th. In 2022, when the global economy was in recession and the semiconductor market was slowing down, executives including Han Jong-hee, Head of the Device Experience (DX) Division (Vice Chairman), and Kyung Kye-hyun, then Head of the Device Solutions (DS) Division (President), purchased a total of 12.1 billion KRW worth of company shares.

Some are focusing on the fact that executives who are well aware of internal company matters purchased the shares, raising expectations that Samsung Electronics will soon announce good news related to its semiconductor business. Analysts suggest that the company may receive foundry orders from global firms or have positive developments related to HBM. Samsung Electronics is currently undergoing quality testing for supplying HBM3E 12-layer products to Nvidia, a leader in AI chips. Expert forecasts have further heightened expectations. Kim Young-kwon, a researcher at Mirae Asset Securities, stated, "I believe the existing guidance of starting mass production of HBM3E 12-layer is achievable." Hwang Min-sung, a researcher at Samsung Securities, also predicted, "Samsung Electronics’ HBM3E is highly likely to pass Nvidia’s certification, with the scheduled deadlines being June for the 8-layer product and within the third quarter for the 12-layer product."