Foreign investors cut stakes in Samsung and SK Hynix to sub-50% levels

Foreign investors' share of Samsung Electronics declined to 46.38% on Thursday, the lowest level recorded since January 2008, according to Korea Exchange data. This represents a six-point fall from a 52.40% high earlier in the year and follows a trend of ownership slipping below 50% in March and under 47% in July, even as the overall market rose. SK Hynix experienced a similar retreat, with foreign holdings dropping to 49.59% after falling beneath the half-share mark in late September.

Net foreign sales of Kospi stocks have exceeded 197 trillion won (about $147 billion) this year. Samsung reported a preliminary third-quarter operating profit of 107.4 trillion won on revenue of 195 trillion won, yet the earnings surge did not reverse the selling pressure. Analysts cite rising US bond yields, oil price dynamics and the end of Samsung's share-buyback program as key factors dampening foreign demand, while noting solid semiconductor fundamentals.