Samsung Electronics' foreign net purchases reach record high in 2023

Samsung Electronics' chip plant located in Pyeongtaek, Gyeonggi [YONHAP]

Foreign investors' net purchases of Samsung Electronics shares reached a record high last year on rising expectations of a recovery in the semiconductor industry.

Offshore investors purchased a net 16.7 trillion won ($12.9 billion) worth of Samsung Electronics shares, the world's largest memory chipmaker, last year, according to the data by the Korea Exchange (KRX).

It is the largest foreign net buying of Samsung Electronics shares since the bourse operator KRX began compiling such data in 1999.

It is also the first time in three years that foreigners turned to net buyers of Samsung Electronics, the largest stock in terms of market capitalization on the Kospi. They had remained net sellers from 2020 to 2022.

As a result, foreigners held 53.9 percent of the shares in Samsung Electronics in 2023, up 49.6 percent from a year ago.

"Due to the positive outlook for a turnaround in the chip industry, foreigners have bet on Samsung Electronics," said Na Jung-hwan, an analyst from NH Investment & Securities.

Samsung Electronics shares rose for seven days in a row to close at a yearly high of 78,500 won on Thursday, the last trading day of 2023.

Meanwhile, foreigners purchased a net 2.8 trillion won worth of stocks of SK hynix, the No. 2 memory chipmaker, last year, up from a net buying of 833 billion won in 2022.

BY SARAH CHEA, YONHAP [chea.sarah@joongang.co.kr]