Buying and Buying Again: "Even Without Money, Now Is the Time" - Record Debt-Fueled Investment Rush into Samsung Electronics

Largest Net Buying in 16 Months for Samsung Electronics,
While SK Hynix Sees Net Selling

Recently, as Samsung Electronics' stock price has surged, individual investors have been flocking to buy shares. Last week, individuals made a net purchase of nearly 3 trillion won worth of Samsung Electronics shares, marking the largest weekly net purchase in 1 year and 4 months. In the process, so-called "debt-fueled" investments through borrowing also reached an all-time high.

Recently, Samsung Electronics' stock price surged sharply, attracting strong buying interest from individual investors. Last week, individuals net bought nearly 3 trillion won worth of Samsung Electronics shares, marking the largest weekly net purchase in 1 year and 4 months. Photo by Getty Images

According to the Korea Exchange on January 11, from January 5 to 9, individual investors made a net purchase of 2.915 trillion won in Samsung Electronics shares. This is the highest level since September 2024.

Interestingly, during the same period, individual investors made a net sale of about 167 billion won in SK Hynix shares. While funds were concentrated in Samsung Electronics, investors realized profits in other leading semiconductor stocks.

Borrowed investments in Samsung Electronics are also heating up rapidly. According to the exchange, as of January 8, the margin loan balance for Samsung Electronics reached an all-time high of 1.977 trillion won. The margin loan balance refers to the amount investors have borrowed from securities firms to buy stocks that has not yet been repaid; as this balance increases, it indicates a rise in leveraged investments. The margin loan balance for Samsung Electronics increased for seven consecutive trading days from December 29 to January 8.

This buying trend is attributed to expectations of increased demand for memory semiconductors driven by expanded investments in artificial intelligence (AI), as well as Samsung Electronics' recently announced earnings, which far exceeded market expectations. Target price forecasts are also being raised one after another. According to financial information provider FnGuide, as of January 8, the average target price for Samsung Electronics suggested by at least three securities firms was 154,423 won, up 17,654 won from the previous average of 136,769 won. KB Securities set its target price at 200,000 won.

Although the stock price has risen sharply, some analysts still see Samsung Electronics as attractively priced compared to other semiconductor companies. However, some in the securities industry point out that for the stock price to rise further, clearer growth drivers, such as expanded supply to major clients, will be needed.