[Featured Stock] Samsung Life Insurance Soars 10% on Expectations of Samsung Electronics Share Buyback Cancellation

Samsung Life Insurance is surging on news of Samsung Electronics' 10 trillion won scale share buyback.

As of 9:44 a.m. on the 18th, Samsung Life Insurance is trading at 107,700 won, up 10,100 won (10.35%) from the previous session. It has recovered the 100,000 won level after four days.

Samsung Life Insurance currently holds an 8.51% stake in Samsung Electronics, while Samsung Fire & Marine Insurance holds 1.49%. Under the Financial Conglomerate Supervision Act, if the stake in Samsung Electronics exceeds 10%, approval from financial authorities is required, or the excess shares must be sold. Junseop Jeong, a researcher at NH Investment & Securities, stated, "Assuming Samsung Life Insurance maintains its current stake, the expected amount from selling excess shares due to Samsung Electronics' share cancellation would be 228.4 billion won (if 3 trillion won worth is canceled) to 761.2 billion won (if the entire 10 trillion won is canceled) based on the closing price on the 15th." He added, "Previously, in a 2022 conference call, Samsung Life Insurance stated that gains from share sales, regardless of accounting, would be used as resources for shareholder returns. Therefore, if Samsung Electronics' shares are sold, part of the proceeds could be used for dividends, treasury stock, or other forms of shareholder returns."