Samsung Electronics Foreign Ownership Falls to 46.38% as Selling Continues Despite $77.8 Billion Operating Profit

Samsung Electronics posted third-quarter operating profit of 107.4 trillion won ($77.8 billion), but foreign investors continued to pull out. Foreign ownership fell into the 46% range, the lowest level in about 18 years and nine months.

Korea Exchange data showed foreign investors held 46.38% of Samsung Electronics as of Oct. 8. That was the lowest since Jan. 11, 2008, when the figure was 46.35%. It marked a decline of 6.02 percentage points from 52.4% at the start of the year.

Foreign selling has spread across South Korea's large-cap semiconductor stocks. Foreign ownership in SK Hynix also stood at just 49.59% on Oct. 8. After falling below the 50% threshold at the end of September for the first time since 2023, it has remained in the 49% range for eight straight trading sessions.

Foreign investors' cumulative net sales on South Korea's stock market this year have exceeded 197 trillion won ($142.8 billion), centered on Samsung Electronics and SK Hynix. They were net buyers of more than 11 trillion won ($8 billion) in 2023, while buying and selling were roughly balanced in 2024. After shifting to net sales of more than 4 trillion won ($2.9 billion) last year, the scale of selling has expanded sharply this year.

The decline in Samsung Electronics' foreign ownership accelerated after the U.S.-Iran war. The stake fell below 50% in March and dropped to the 48% range in May. Since then, even record quarterly operating profit has failed to trigger a return to net buying by foreign investors.

Lee Jae-won, an analyst at Yuanta Securities, said the latest results reaffirmed that strong earnings alone are not enough to reverse foreign investor flows. Political and geopolitical events also do not automatically bring foreign investors back, he added.

That means investors should monitor foreign trading flows before increasing their holdings. Any further increase in weighting should be tied to changes in foreign investor demand, Lee said. A staggered buying strategy would be effective as selling pressure eases.