KOSPI's Unstoppable Surge, Breaking Record Highs Again

KOSPI Hits 2834.59 Intraday
Samsung Electronics Leads Gains Surpassing 80,000 Won
Volatility Concerns Due to Ex-Dividend and US Political Uncertainty

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Samsung Electronics, the leading stock in the domestic market, is driving the KOSPI's rise as it surpasses 80,000 won. The KOSPI appears to be settling in the 2,800 range for the first time in history. However, with the ex-dividend date just a day away and political uncertainties in the U.S. amid pending economic stimulus measures, concerns about increased volatility remain for the time being.

As of 9:02 a.m. on the 28th, the KOSPI recorded 2,834.59, up 0.99% (27.73 points) from the previous trading day. This is the highest level ever in the history of the Korean stock market. Institutional and other corporate investors showed strong buying. As of 9:40 a.m., institutional investors and other corporations had net purchases of 108.2 billion won and 12.3 billion won, respectively. Conversely, foreign investors and individuals had net sales of 89.2 billion won and 31.4 billion won, respectively.

The key player enabling the KOSPI to break out of the 2,730?2,780 box range since mid-month is considered to be Samsung Electronics, the leading stock. As of 9:48 a.m. on the day before the ex-dividend date, Samsung Electronics was trading at 79,500 won, up 2.19% from the previous day. Early in the session, it reached 80,100 won, marking the first time since the 2018 stock split that it entered the "80,000 won range." Expectations for a special year-end dividend have led to hopes for expanded dividends in the KOSPI, which in turn resulted in large program-driven net purchases by institutional investors, especially financial investment firms such as securities companies. Lee Kyung-min, a researcher at Daishin Securities, explained, "On the 24th, the KOSPI 200 index rose by 2.16%, which was greater than the KOSPI's 1.25% increase. This confirms the strong influence of dividend expectations and the resulting inflow of program purchases."

The annual cash dividend for KOSPI 200 companies this year is expected to reach 34 trillion won, a 25% increase from last year. This figure reflects expectations that Samsung Electronics, which accounts for 44% of total dividends from domestic companies, will issue a special dividend this year. According to the financial investment industry, the inheritance tax on the late Samsung Group Chairman Lee Kun-hee's shares was finalized at 11.0366 trillion won, based on the average closing price of the stock over the past four months. This is the largest amount ever, calculated by applying a 20% premium for the largest shareholder, the highest inheritance tax rate of 50%, and a 3% deduction for voluntary reporting. It is anticipated that Samsung Electronics will maximize its dividend payout to secure funds for the owner's family's inheritance tax.

However, with the ex-dividend date approaching and the U.S. government's additional stimulus package still facing difficulties, the possibility of increased volatility remains. Seo Sang-young, a researcher at Kiwoom Securities, said, "Depending on whether U.S. President Donald Trump signs the additional stimulus package, there is a high possibility of profit-taking sales, and with the ex-dividend date on the 29th, volatility in Samsung Group stocks is inevitable, so the possibility of increased volatility in individual stocks remains high. However, expectations for economic recovery next year tend to continue, so any correction is expected to be limited."

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