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Samsung, SK Hynix Buybacks Ending Early, Kospi Support Wanes
M
Moneycontrol•30-09-2026, 07:50
Samsung, SK Hynix Buybacks Ending Early, Kospi Support Wanes
- •Samsung Electronics Co. and SK Hynix Inc. are nearing completion of their combined 55 trillion won ($40.5 billion) share buyback program, expected to end by mid-October, a month earlier than planned.
- •The accelerated buybacks have been a crucial demand source for the benchmark Kospi index, especially as trading volume has decreased and other major buyers are scarce.
- •The early conclusion of these buybacks risks leaving the Kospi more reliant on renewed foreign and institutional investment to sustainably break above the 7,000 level.
- •Despite the chipmakers' purchases, which buoyed the index in September, the Kospi has struggled to stay above 7,000 and has lost almost 20% this quarter, making it the worst-performing major equity benchmark.
- •Analysts warn that the exhaustion of the buyback support could increase market volatility and that the Kospi faces an upper bound around 7,500 without new buyers due to thin trading volume.
Key Questions Answered
Samsung Electronics Co. and SK Hynix Inc. announced plans to buy back a combined 55 trillion won, which equates to $40.5 billion, of their own shares.
While the plan was originally expected to end around the second half of November, the chipmakers have completed about 80% of the buybacks and could finish by mid-October due to an accelerated pace.
The accelerated share purchases provided crucial demand for the benchmark Kospi index during a period of dried-up trading volume, helping keep the index almost flat in September despite heavy foreign and retail selling.
