The Easy Knowledge Blog

Despite a record quarterly operating profit of 107 trillion won, the KOSPI slid to the 6,600 level as foreign investors and institutions sold together

🎧 Post Summary

For the first time in Korean corporate history, a company earned more than 100 trillion won in operating profit in one quarter. Yet on the same day the KOSPI fell more than 2%. This post looks at why record earnings and a falling market landed on the same day, through supply and demand, interest rates, and the brokerage view.

① How Big Is 107 Trillion Won?

On October 8, Samsung Electronics disclosed preliminary consolidated third-quarter results: revenue of 195 trillion won and operating profit of 107.4 trillion won. Revenue rose 126.6% and operating profit rose 782.5% from a year earlier, with an operating margin of 55.1%. Operating profit was also up 20.01% from the previous quarter.

The result beat the market consensus (105.7533 trillion won, per Yonhap Infomax) by 1.6%. Following roughly 57 trillion won in the first quarter and 89.4 trillion won in the second, Samsung has set a new record every quarter this year. News1 reported that the figure also exceeds Apple’s record quarterly operating profit of about 68 trillion won.

② Why Did Shares Fall Anyway? Supply and Demand

The KOSPI opened at 6,808.68, touched an intraday high of 6,810.83, then widened its losses and closed at the session low of 6,625.93. Individuals net bought 2.9022 trillion won, but could not offset net selling by foreigners (1.9911 trillion won) and institutions (1.6652 trillion won). It was the second straight day of heavy foreign selling after October 7.

Samsung Electronics closed down 1.86% at 263,500 won and SK Hynix down 2.03% at 1,688,000 won. SK Square (-7.88%), Samsung Life (-3.74%) and Hyundai Motor (-3.27%) also fell, while LG Energy Solution rose 2.56%. The KOSDAQ fell 0.69% to 892.27, with Alteogen down 6.03% amid weakness in biotech.

Reports explain that profit-taking followed the earnings release and was compounded by options expiry, ETF rebalancing, and short-term supply pressure ahead of the October 9 Hangul Day holiday. One report noted Samsung was up 1.5% in early pre-market trading, but it could not hold those gains in the regular session.

③ Background Factor: US Rates and the FOMC Minutes

In the minutes of the September FOMC meeting, released the previous day, most members judged that one more rate hike by year-end was likely appropriate. Around 5:35 p.m. on October 8, the US 10-year Treasury yield stood at 5.326% and the 30-year at 5.710%, both elevated. In Korea, the 3-year government bond yield was 3.983% and the 10-year was 4.395%, and the won closed at 1,338.5 per dollar, up 1.9 won.

However, none of the reports we reviewed named this rate environment as the direct cause of the day’s drop. It is safer to treat high rates as a general background pressure on valuations of growth and semiconductor stocks.

④ Brokerages Say ‘Undervalued,’ but With Caveats

Brokerages are keeping strong buy ratings. Meritz Securities said the memory division beat its own forecast by more than 2.2 trillion won, with pricing policy driving results despite a strong-won headwind. KB Securities expects HBM4 to be contracted at the highest price level among the three DRAM makers. Target prices include Yuanta at 630,000 won, KB at 610,000, SK at 600,000, Hanwha Investment at 580,000, Eugene Investment at 560,000, and DS Investment and Shinhan Investment at 530,000. Newsis reported this implies upside of roughly double the current price.

There are counterpoints. The market had largely expected the 100 trillion won mark, and the result beat consensus by only 1.6%, so one reading is that expectations were already priced in. Forecasts also suggest the mobile (MX) division may post a loss because it has not fully passed memory cost increases into device prices, and that foundry and System LSI may stay in the red. Heavy reliance on the memory boom is routinely discussed alongside worries about a cooling cycle.

📌 Good to Know

• These are preliminary figures (IFRS basis) estimated before the books are closed. Confirmed results must be checked in later filings.
• Strong earnings do not automatically lift the share price that day. Market expectations, pre-announcement price moves, and short-term supply all play a part.
• Target prices are brokerage forecasts, not guaranteed returns. Volatility may rise with foreign selling and rate developments.
• This post is not investment advice. Investment decisions and their consequences are your own responsibility.

In short, Samsung delivered record earnings, but the KOSPI was pushed down the same day by post-announcement profit-taking, short-term supply pressure, and heavy net selling by foreigners and institutions. Brokerages are optimistic and call the stock undervalued, yet with expectations so high, short-term volatility may continue. The next thing to watch is how foreign flows behave after the October 9 holiday.

References

• Newsis, “삼성전자, 올 3분기 영업이익률 55% 신기록 …반도체 부문은 70% 돌파할 듯” (newsis.com)
• Newsis, “삼성전자, 경제사 새로 썼지만 주가는 주춤…증권가 ‘적극 매수’” (newsis.com)
• Financial News, “삼성전자 영업익 ‘100조 신화’…엔비디아·구글·애플 넘었다” (fnnews.com)
• Herald Economy, “[속보] 삼성전자 3분기 영업이익 107.4조원…새 역사 썼다” (biz.heraldcorp.com)
• Blockmedia, “[퇴근길시황] 삼성전자 107조 실적에도 코스피 2.62% 하락…비트코인 8.2만달러·ETF 6.6억달러 유출” (blockmedia.co.kr)
• Dealsite, “삼성전자, ‘꿈의 실적’ 쓴다…3분기 영업이익 100조 돌파 전망” (dealsite.co.kr)