In today’s briefing:
- Samsung Electronics: Share Buyback of 3.9 Trillion Won
- Breaking Down the Moving Parts in Samsung’s Third-Leg Buyback Play
- Samsung Electronics (005930 KS) Outlook After 3.9 Trillion Won Buyback Plan Announcement
- Significance of The “3% Rule” In the Revision of the Commercial Act in Korea
- KOSPI 200: Event-Driven Strategies into the July 10 BoK Decision
Samsung Electronics: Share Buyback of 3.9 Trillion Won
- Samsung Electronics announced today that it plans to conduct a large scale buyback worth 3.9 trillion won, of which 2.8 trillion won will be cancelled.
- Samsung Electronics reported consolidated sales of 74 trillion won and operating profit of 4.6 trillion won in 2Q 2025, down 0.1% and 55.9% YoY, respectively.
- The average daily trading volume (ADTV) of Samsung Electronics (005930 KS) (common shares) is 15.43 million. Therefore, the share buyback of 56.89 million (common shares) represents 3.7x of ADTV.
Breaking Down the Moving Parts in Samsung’s Third-Leg Buyback Play
- If stock comp stays all in commons like last time, cancellation hits ~1.40% of SO in commons, 1.72% in prefs — setting up preferreds for relative outperformance.
- If they cancel the full pool, Samsung Life + Fire’s stake hits 10.14%, forcing a ₩500B block — nearly 2x the ₩280B print back in Feb.
- Again, odds are the overage hits the tape again — watch for a potential block print before the third leg wraps, like what played out in Feb.
Samsung Electronics (005930 KS) Outlook After 3.9 Trillion Won Buyback Plan Announcement
- Douglas Kim and Sanghyun Park have discussed Samsung Electronics (005930 KS)‘s 3.9 Trillion Won Share Buyback Plan announced on July 8th. Read the details in their insights.
- Our latest insight maintained our BUY recommendation: the stock rallied during the following 2 weeks, reaching 64,700, then was marked as “very overbought” in our latest Global Tactical Weekly view.
- The stock started to pull back last Friday, after reaching extremely overbought levels (64700). This insight presents a tactical view for Samsung Electronics direction, for the next 2-3 weeks.
Significance of The “3% Rule” In the Revision of the Commercial Act in Korea
- One of the most important changes in the revisions of the Commercial Act in Korea that was passed in the Parliament last week was the “3% rule.”
- In this insight, we provide details of this 3% rule and how it is likely to significantly impact the Korean equity markets.
- Major impact of the 3% rule is it is likely to shake up the BODs at many Korean companies. Many global activist investors will likely be more active in Korea.
KOSPI 200: Event-Driven Strategies into the July 10 BoK Decision
- Context: The Bank of Korea will announce its rate decision on July 10, 2025. This Insight compares market and option-implied expectations with historical KOSPI 200 reactions.
- Highlights: While average market reactions to BoK moves are historically muted, options are pricing in elevated volatility. Two event-driven strategies are discussed.
- Why Read: This Insight offers actionable, volatility-focused options strategies grounded in empirical data and current pricing—timely for traders seeking to monetize elevated volatility ahead of central bank and geopolitical events.
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