South Korean Stock Buybacks "Surge": Scale Jumps 467.33% in First 10 Months! Samsung and SK Hynix Are the Main Drivers

This year, the amount of share buybacks and disposals by South Korean listed companies has increased significantly. According to the latest data from the Korea Exchange (KRX) on Sunday (November 1), during the period from January to October this year, the total amount of share buybacks and disposals by listed companies was approximately KRW101.9217 trillion, an increase of about 467.33% compared with KRW17.9652 trillion in the same period last year. The data includes direct acquisitions, trusts, and the acquisition and sale of stock options. By market, on the Kospi market, the figure was KRW100.6006 trillion; on the Kosdaq market, it was KRW1.5207 trillion. Compared with the same period last year, they rose by 494.78% and 40.22%, respectively. Samsung and SK Hynix Account for 80% It is reported that buybacks and disposals are one of the most common forms of shareholder return policies. When listed companies buy back a large number of their own shares, the number of shares circulating in the market decreases, which may push up the share price. Samsung Electronics and SK Hynix are the main drivers of the surge in buyback and disposal amounts this year. SK Hynix has completed KRW40 trillion in buybacks and is advancing an additional KRW20 trillion buyback plan; Samsung Electronics recently bought back about KRW15 trillion of its own shares. The total buybacks of these two companies amount to about KRW82 trillion, accounting for 80% of the total buybacks and sales reported by all listed companies. Both Samsung Electronics and SK Hynix regard such buybacks as part of their shareholder return policies. Compared with SK Hynix's continued advancement of its shareholder return plan, Samsung Electronics plans to further implement stock buyback measures in January next year. The market is disappointed that Samsung Electronics has postponed the announcement of a specific shareholder return financial plan until next year. Nevertheless, analysts still believe that, because the shareholder return policy itself has not been canceled, this move is expected to become a catalyst for future share price revaluation. Lee Jae-won, an analyst at Yuanta Securities, pointed out, "The market is focused on the shareholder return policy, not on strong earnings performance." He stressed, "The difference is not in the ability to return to shareholders, but in the transparency of its execution." However, he added, "Since Samsung Electronics has not withdrawn its shareholder return plan, its final implementation will provide additional impetus for share price revaluation." Kim Dong-won, head of research at KB Securities, said, "Samsung Electronics is expected to announce its shareholder return policy for the next year in January 2027 and disclose an additional shareholder return plan for 2026." He added, "In particular, operating profit for the next two years is expected to be 51% higher than the cumulative operating profit of the past 56 years, setting a record high, which will become a historic turning point for corporate value revaluation." This article is reprinted from "Cailian Press," author: Zhou Ziyi; GMTEight editor: Xu Wenqiang.