Samsung Asset Management Bought More of the '50,000 Electronics' Stocks

Reviewing Samsung Asset Sales Report
Samsung Electronics Holding Ratio Increased Compared to Last Year
Holding Ratio Decreased but Has Been Rising Since Last Year

[Asia Economy Reporter Hwang Junho] Samsung Asset Management, the largest asset management company in Korea with a total net asset of 288 trillion KRW, has increased its investment proportion in Samsung Electronics over the past year. Although the stock price plummeted from the 80,000 KRW range to the 50,000 KRW range, fund managers saw this as an opportunity for bargain buying and increased their holdings, according to analysis.

According to Samsung Asset Management's quarterly report for Q2 this year on the 30th, the value of Samsung Electronics shares managed by Samsung Asset was 3.774429 trillion KRW. As of the end of June, Samsung Electronics' stock price was 57,000 KRW, and the estimated holding volume was about 66.21 million shares.

Looking at the holding value, it decreased by 607.4 billion KRW from 4.381913 trillion KRW last year over one year. At first glance, it appears that the proportion of Samsung Electronics was reduced due to the stock price decline. However, when examining the holding value as a proportion of Samsung Electronics' market capitalization, the ratio increased from 0.91% last year to 1.11% this year. Estimating the holding volume based on the stock prices at the end of June last year and this year, the volume increased from 54.29 million shares last year to 66.21 million shares this year. The stock price dropped 29.36% from 80,700 KRW per share at the end of June last year to 57,000 KRW per share at the end of June this year, but the increased proportion indicates that Samsung Electronics shares were purchased.

An industry insider explained, "Fund managers appear to have increased their holdings, viewing the decline in Samsung Electronics' stock price as an opportunity for bargain buying."

Samsung Asset Management gradually reduced its holding proportion from 1.82% in 2019 to 1.55% in 2020, and so on. However, the holding proportion has gradually increased since last year.

Samsung Asset stated, "Since last year, exchange-traded funds (ETFs) investing in various indices have grown rapidly (currently with net assets of 76 trillion KRW), and Samsung Asset has also increased ETF launches," adding, "The inclusion ratio of Samsung Group stocks, including Samsung Electronics, is high in each index, which seems to have increased the proportion." Samsung Asset Management introduced ETFs to Korea for the first time in 2002 and is celebrating its 20th anniversary this year.

Meanwhile, Samsung Asset's holdings in Samsung Biologics also increased significantly. The holding value is about 369 billion KRW, up from 33.3 billion KRW last year. The holding proportion also rose from 0.60% to 0.66%.

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