SEOUL, February 03 (AJP) - Foreign ownership of Samsung Electronics slipped below 50 percent for the first time in more than a year, reflecting mounting investor concerns over semiconductor demand and the company’s position in the rapidly evolving artificial intelligence market.
As of Friday, foreign investors held a 49.99 percent stake in South Korea’s largest company, down from 56.55 percent in July 2024, according to data from the Korea Exchange. Over the past six months, overseas shareholders have sold 22.88 trillion won ($17.1 billion) worth of Samsung shares.
The decline comes as Samsung faces challenges in the semiconductor industry, including delays in its high-bandwidth memory (HBM) business, a sector increasingly dominated by its South Korean rival, SK hynix.
Investor sentiment has also been shaken by recent developments in China’s AI sector, including reports that DeepSeek, a Chinese startup, has developed a cost-effective AI model capable of competing with established players.
Despite the downturn, analysts remain cautiously optimistic.
“Samsung’s stock price could recover in the first half of the year if the company demonstrates a rebound in technological competitiveness and unveils shareholder return initiatives,” said Lee Jong-wook, an analyst at Samsung Securities.
He added that while first-quarter earnings may fall short of expectations, identifying a clear bottom in quarterly profits could be seen as a positive sign for investors.
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