Samsung Electronics’ private investor share rises to 6.5%… Estimated 2 million minority shareholders

Input 2021.01.03 09:11

Last year individual investors Samsung Electronics (005930)As stocks were bought in large numbers, the gap between individual and institutional investors narrowed to 0.6 percentage points.

According to Samsung Electronics and the financial investment industry on the 3rd, as of the end of last year, Samsung Electronics had a private stake of 6.5% and an institutional share of 7.1% excluding the National Pension Plan. At the end of 2019, individuals owned 3.6% and domestic institutions excluding the National Pension System owned 8.7% of Samsung Electronics. It was 5.1 percentage points. Last year, individuals bought 17.71 million shares (2.97% of the total stock), while institutions sold 97.5 million shares (1.64% of the total stock). It means that the influence of individuals in the share price trend of Samsung Electronics has grown as much as that of institutions.

As of the end of 2019, 21.2% of related persons including the largest shareholder, 10.6% of the national pension, and 55.9% of foreigners. During the same period, foreigners sold 85.57 million shares, down 1.4 percentage points to 54.5%. The national pension increased by 0.2 percentage points to 10.8% (as of November 30 last year).

However, the foreign equity ratio (55.9%) determined based on the shareholders’ list at the end of 2019 is about 0.9% different from the equity ratio (56.8%) compiled by the financial authorities. This is because foreigners receive an alien registration card, report it to the Financial Supervisory Service, and then conduct transactions. Even if they are foreigners, they sometimes place general orders from securities companies without a registration card. In this case, the Financial Supervisory Service counts cases even though foreigners are not reported, but the company collects only those foreigners who have been reported, resulting in a difference.

If Samsung Electronics’ foreign ownership at the end of 2019 is 56.8%, the ownership of not only individuals but also institutions may fall further.

It is estimated that only minority shareholders (less than 1% stake) holding shares of Samsung Electronics will reach 2 million. The number of minority shareholders steadily increased from 56,8313 at the end of 2019 to 1,36,4972 at the end of March last year, 145,4373 at the end of June, and 1.75 million at the end of September. For six months from April to September, after March, when the stock price plummeted due to the spread of the new coronavirus infection (Corona 19), individuals net bought 13,613,079 shares of Samsung Electronics.

During the same period, the number of minority shareholders increased by 380,965. It bought an average of 34.9 shares, about 35 shares per increased minority shareholder. In the three months from October to December, individual net purchases amounted to 1441,7929 shares.

By simply substituting the average number of shares per minority shareholder from April to September, the number of minority shareholders increased in October to December is more than 400,000. Accordingly, the total minority shareholders of Samsung Electronics are estimated to exceed 2 million.