Samsung Electronics Sees Record Foreign Investment Surge

SEOUL – Samsung Electronics Co., the world’s leading memory chipmaker, has witnessed a historic surge in foreign net investments, as revealed by recent bourse data. Last year, foreign investors significantly increased their stakes in the company, marking a notable shift in investment trends and reflecting growing confidence in the semiconductor industry’s recovery.

According to Yonhap News Agency, offshore investors acquired a net total of 16.7 trillion won (approximately US$12.9 billion) in Samsung Electronics stocks last year. This figure represents the largest foreign net buying of the company’s shares since KRX began compiling such data in 1999. The investment surge in 2023 stands out as the first instance in four years where foreign investors have been net buyers of Samsung Electronics stocks. This shift ends a period from 2020 to 2022 where they were net sellers.

The increased foreign investment has led to foreigners holding 53.9 percent of Samsung Electronics shares in 2023, a significant rise from 49.6 percent the previous year. Analyst Na Jung-hwan from NH Investment and Securities Co. attributed this trend to the positive outlook for a turnaround in the chip industry, which has encouraged foreign investors to bet on Samsung Electronics.

In a related trend, Samsung Electronics’ stock prices have been on the rise, recording a consistent increase over seven consecutive days and closing at a yearly high of 78,500 won on the last trading day of 2023. The company’s market performance mirrors broader investor confidence in the semiconductor sector.

Furthermore, the data also highlighted increased foreign investment in SK hynix, the world’s second-largest memory chipmaker. Foreign net purchases for SK hynix stocks reached 2.8 trillion won last year, a notable increase from the 833 billion won in net buying recorded in 2022.

This substantial influx of foreign capital into major South Korean chipmakers like Samsung Electronics and SK hynix underscores the global investment community’s optimistic view of the semiconductor industry’s future prospects.