SEOUL, October 29 (AJP) - Samsung Electronics posted its highest-ever quarterly profit on Thursday, yet its shares fell 4.1 percent. The decline suggested that investors are increasingly focused on shareholder returns rather than record earnings in South Korea's chip sector.
The country's benchmark KOSPI fell 1.24 percent or 74.78 points, to 5,937.66, as institutional investors sold a net 457.9 billion won (US$342.9 million) worth of shares.
Samsung Electronics closed at 232,000 won, while SK hynix bucked the slide, rising 2.6 percent to 1,526,000 won a day after unveiling a fresh shareholder-return package.
LG Energy Solution sank 8.6 percent on a planned stake sale by its parent, causing the tech-heavy KOSDAQ to lose 2.3 percent.
Tokyo moved the other way, with the Nikkei 225 climbing 1.1 percent to 64,659.5.
The KOSPI briefly climbed above 6,100 before Samsung's earnings report reversed the market's direction, erasing part of the previous day's 6.6 percent rally.
Declining stocks outnumbered advancing ones 633 to 236.
Samsung posted its third-quarter operating profit of 107.4 trillion won, up 783.1 percent from a year earlier and marking its fourth consecutive quarterly record.
Samsung shares rose above the previous close before the earnings announcement but fell afterward, a day after gaining 9.1 percent.
The electronics giant pledged to pay about 30 trillion won in cash dividends for the quarter. However, it said its board would review the remaining 90 trillion to 110 trillion won planned for shareholder returns in January, after the full-year results are finalized.
Kang Jin-hyuk, an analyst at Shinhan Investment Corp., said the selling reflected disappointment that aggressive returns would be pushed back, adding that the stock slipped back below its 200-day moving average.
Other analysts also pointed to legal limits. Samsung Life Insurance and Samsung Fire & Marine Insurance hold stakes in Samsung Electronics close to the 10 percent cap imposed on financial affiliates under relevant domestic laws, potentially limiting the number of shares Samsung Electronics can cancel.
SK hynix told a different story. It paired record results on Wednesday with roughly 60 trillion won in additional shareholder returns, and its shares jumped 11.4 percent that day before extending gains.
Foreign investors bought a net 35.3 billion won, their third straight session of net buying but far smaller than the previous day's. Individuals bought a net 85.1 billion won.
LG Energy Solution fell to 356,000 won after parent LG Chem disclosed a plan to sell about 2.79 percent of the battery maker for roughly 2.5 trillion won. The sale is to run through a price return swap, a derivative deal that moves the shares to a financial counterparty between Nov. 27 and Dec. 24.
The sale would cut LG Chem's stake to 76.6 percent from 79.4 percent. The parent has said it intends to lower its holding to around 70 percent over the coming years, keeping the prospect of sales beyond this one hanging over the stock.
The junior KOSDAQ fell 18.1 points to 753.2, reversing part of its 3.7 percent gain the previous day.
In Tokyo, the Nikkei 225 rose 705.3 points to 64,659.5 for a second straight gain. Artificial intelligence and chip shares led early buying, according to Jiji Press.
The South Korean won strengthened, with the dollar trading at 1,335.5 won, down 8.0 won.
Samsung's board decision in January is now the next key event for investors. Until then, they will be watching for a clear shareholder-return target from Samsung, following SK hynix's announcement of its own plan
AJP Takeaways
- Samsung Electronics shares fell 4.1 percent on Oct. 29, 2026, after the company reported a record third-quarter operating profit of 107.4 trillion won ($80.5 billion) but deferred the rest of its 2026 shareholder-return plan to a January board review.
- SK hynix shares rose 2.6 percent to 1,526,000 won ($1,142.6) on Oct. 29, 2026, a day after SK hynix paired record results with roughly 60 trillion won ($44.9 billion) in additional shareholder returns.
- LG Energy Solution shares fell 8.6 percent on Oct. 29, 2026, after parent LG Chem disclosed a plan to sell about 2.79 percent of LG Energy Solution for roughly 2.5 trillion won ($1.9 billion), cutting LG Chem's stake to 76.6 percent from 79.4 percent.
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