KOSPI Drops Below 6800 on Samsung Electronics' Sharp Decline; KOSDAQ Rises

South Korea's benchmark KOSPI index opened lower and extended its losses on August 24, trading down 1.73% at 6793.51 points. The market's downturn was significantly influenced by a substantial 7% plunge in the stock price of Samsung Electronics.

Despite Samsung Electronics announcing a large-scale shareholder return plan after the market close on the previous Friday, its stock gave back earlier gains. Analysts suggest this reaction may stem from interpretations of a weaker shareholder return ratio compared to SK Hynix, or a 'sell-on-fact' phenomenon following the news. While this volatility is expected to continue for Samsung Electronics, analysts emphasize the strengthening structure of converting profit growth into shareholder value over the medium term.

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This week is a super week with major events scheduled. Market players are expected to engage in active strategic maneuvering during these events.

Major institutional investors and foreign investors were seen selling heavily on the KOSPI. Foreigners offloaded approximately 900 billion won worth of stocks, while institutions sold around 500 billion won. Retail investors, conversely, were net buyers, purchasing about 1.3 trillion won worth of shares.

In contrast, the KOSDAQ market experienced a rally, trading up 1.26% at 812.06 points. This upward movement was supported by foreign investors who were net buyers on the KOSDAQ, purchasing around 50 billion won. Domestic institutions and retail investors were net sellers on the KOSDAQ.

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There are various interpretations, such as a weaker shareholder return compared to SK Hynix and a sell-on-fact due to the material's expiration. Samsung Electronics' supply and demand volatility will increase, but it is necessary to focus on the strengthening structure of converting profit growth into shareholder value from a medium-term perspective.