Samsung Electronics and SK hynix drive KOSPI support via massive share buybacks

Samsung Electronics and SK hynix are conducting massive share buybacks, significantly impacting the South Korean stock market. Between August 20 and August 27, ‘other corporations’—the category capturing these buybacks—net purchased approximately 8.57 trillion won in the KOSPI, acting as a buffer against selling pressure from foreign investors, individual retail investors, and pension funds.

Samsung Electronics plans to purchase 15 trillion won worth of treasury shares through August 21, while SK hynix intends to acquire 40 trillion won worth of shares by November 19. With roughly 8.48 trillion won already purchased, an estimated 46 trillion won in additional buying power remains. Analysts suggest this trend of strong net purchases by other corporations could continue for at least another 30 trading days.

Despite this support, the KOSPI has struggled to break past the 7,000 level, remaining within a range of 6,700 to 6,900. Market analysts note that while the buybacks absorb selling volume, they are primarily serving to prevent sharp declines rather than driving new highs. External factors, including high U.S. Treasury yields, high oil prices, and anticipation surrounding large-scale IPOs like Anthropic, continue to weigh on investor sentiment.