[Chairman Lee Kun-hee Passes Away] Samsung Electronics Stock Outlook: "No Significant Impact Expected"

As of June 30, Samsung Electronics Has 1,454,373 Minority Shareholders

On the 25th, the day Lee Kun-hee, Chairman of Samsung Group, passed away, the flag at the Samsung Electronics building in Seocho-gu, Seoul, was fluttering in the wind. Photo by Dongju Yoon doso7@

[Asia Economy Reporter Kum Boryeong] With the passing of Samsung Group Chairman Lee Kun-hee, interest in the direction of Samsung Electronics' stock price is growing.

According to the Financial Supervisory Service's electronic disclosure system (DART) on the 25th, as of June 30, Samsung Electronics has 1,454,373 minority shareholders. The criterion for minority shareholders is owning less than one one-hundredth of the total issued shares. Compared to March 31, 2018 (241,414 people), before Samsung Electronics implemented a stock split, this is about six times more.

On May 4, 2018, Samsung Electronics executed a stock split, dividing one share into 50 shares and listing the new shares on the KOSPI market. The stock price, which was 2.65 million won before the split, dropped to 53,000 won. The purpose was to lower the stock price, which had been very high as a so-called "emperor stock," making it burdensome for ordinary investors to buy, and to provide more people with investment opportunities. A stock split divides the face value of shares by a certain ratio, increasing the number of circulating shares.

After the stock split, Samsung Electronics became a "national stock." Especially this year, individual investors have shown great interest in the stock market and bought Samsung Electronics shares. According to the Korea Exchange, from January 2 to the 23rd of this year, Samsung Electronics was the top stock in net purchases by individual investors. During this period, individual investors net purchased Samsung Electronics shares worth 7.2376 trillion won. Including Samsung Electronics Preferred shares, which ranked second with 3.0545 trillion won, the total purchase amounts to about 10 trillion won.

Market experts predict that Chairman Lee's passing will not have a significant impact on Samsung Electronics' stock price.

Kim Hyung-ryeol, head of the Kyobo Securities Research Center, said, "There will be no special impact," adding, "The direction of the stock price should be discussed based on the company's business activities. Corporate value cannot be determined by matters related to the head of the group."

Kim also said, "Looking at Apple, even after Steve Jobs' passing, the stock price remained strong," and added, "This event (Chairman Lee's passing) does not seem to be something to be treated as reference information for investment."

Kim Jisan, head of the Kiwoom Securities Research Center, said, "Since Vice Chairman Lee Jae-yong's system has long been established, I believe there will be no impact on the stock price or future management performance," and added, "Officially, Vice Chairman Lee's system may gain more strength."

This content was produced with the assistance of AI translation services.