Seoul Stocks Plunge Over 3 Percent Amid Samsung Shareholder Dispute

The benchmark Korea Composite Stock Price Index (KOSPI) fell 3.12 percent to close at 6,696.96 points on Monday. The decline was driven primarily by a sell off in semiconductor stocks, with Samsung Electronics shares plunging 8.7 percent to 257,000 won and SK hynix shedding 3.41 percent to 1,671,000 won. Foreign and institutional investors offloaded a combined net 4.97 trillion won, while retail investors bought a net 3.32 trillion won.

The market reaction followed Samsung Electronics' announcement of a shareholder return plan valued between 90 trillion and 110 trillion won. Despite the scale of the plan, investors expressed disappointment over the lack of specific details regarding stock buybacks and share cancellations. Some analysts noted that regulatory limits on ownership by financial affiliates make buybacks complex for Samsung. In contrast, SK hynix recently announced a 40 trillion won plan specifically for share buybacks and cancellations, which had previously boosted its share price.

While center and center right sources focused on the internal corporate governance and shareholder expectations at Samsung, a center source framed the broader Asian market decline as a result of geopolitical tension. That report attributed the regional dip to investor caution ahead of an expected announcement by U.S. Treasury Secretary Scott Bessent regarding new economic sanctions against Iran. Other Asian markets also closed lower, including the Nikkei in Tokyo and the Hang Seng in Hong Kong, though the S&P/ASX 200 in Sydney rose 0.49 percent.

In other market movements, Korean bio firms strengthened. Hanmi Pharm jumped 29.96 percent following a 3.2 trillion won licensing deal with a U.S. Roche Group subsidiary. The Korean won rose 4.1 won against the U.S. dollar to close at 1,382.4 won.