The number of small shareholders in Samsung Electronics, regarded as the representative national stock of Korea, has surged by nearly 490,000 over the past year, surpassing 5 million again. Despite a sluggish stock price due to deteriorating semiconductor performance, this is interpreted as a result of an increasing number of individual investors making low-price purchases.

The flag is fluttering at the Samsung Electronics Seocho headquarters. /Courtesy of News1

According to Samsung Electronics' business report on the 11th, the number of small shareholders in Samsung Electronics totaled 5,162,10 as of the end of December last year. Small shareholders hold 68.23% of Samsung Electronics' total issued shares.

The number of small shareholders increased by 488,171 compared to the previous year (4,672,039). Compared to late June last year (4,247,611), the number surged by 912,599 in just half a year.

After the number of shareholders dropped to the 4 million range at the end of 2023, it surpassed 5 million for the first time in a year and a half. Samsung Electronics began to see a drop in shareholder numbers after its stock price started to decline following the 80,000 won mark in April last year.

However, after Samsung Electronics announced a plan to buy back more than 3 trillion won worth of its own shares in November of the same year, expectations for a rise in stock prices increased, interpreted as a reason for the increase in small shareholders. Additionally, investors who judged the stock price as a low point while remaining in the 50,000 won range since last October have also contributed to the rise.

In early 2021, as Samsung Electronics' stock price surged beyond 90,000 won, the number of small shareholders who bought into Samsung Electronics approached 6 million. However, as the previously surging stock price began to decline, the number of shareholders also showed a decrease.

Meanwhile, it seems that it will take more time for Samsung Electronics' stock price to break out of the box range. Noh Geun-chang, a researcher at Hyundai Motor Securities, noted, "Due to a decline in universal memory prices, this year's operating profit is expected to drop 15.2% compared to last year," adding, "If improvements in DRAM quality are not confirmed, there will be limits to stock price reassessment."

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