Record-breaking shareholder return announcements from Korea’s two semiconductor giants lifted KOSPI while KOSDAQ took a beating
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On August 21, KOSPI closed up 0.88% at 6,912.95, boosted by strength in large-cap semiconductor stocks. Samsung Electronics rose 3.87% to close at ₩281,500, while SK Hynix gained 2.31% to close at ₩1.73 million. Samsung’s board finalized a record-breaking shareholder return program of up to ₩110 trillion that same day, following SK Hynix’s earlier August 19 announcement of a ₩40 trillion share buyback-and-cancellation program. KOSDAQ, meanwhile, plunged 4.63% on foreign and institutional selling, triggering its 14th sell-side circuit breaker (sidecar) of the year.
Overnight, a renewed rise in U.S. Treasury yields and concerns over slowing consumer spending following Walmart’s earnings had cast a shaky start over Korean markets. But the day ended up being defined by a single story: a ‘shareholder return event’ from Samsung Electronics and SK Hynix that reshaped the entire market mood. KOSPI staged a comeback, while KOSDAQ moved in the opposite direction, exposing a sharp divergence between the two markets.
KOSPI Reclaims 6,900 on Semiconductor Strength
KOSPI opened down 92.63 points (1.35%) at 6,759.95 on August 21. It slipped as low as 6,742.44 early in the session, but as Samsung Electronics and SK Hynix turned positive, the index followed suit within about 40 minutes of the open. It then climbed as high as 6,954.12 during the day, quickly clawing back its losses, and ultimately closed up 60.37 points (0.88%) at 6,912.95.
Samsung Electronics closed up ₩10,500 (3.87%) at ₩281,500, while SK Hynix closed up ₩39,000 (2.31%) at ₩1.73 million. Market-wide, decliners (683) outnumbered advancers (193) by more than three to one, but the two heavyweight semiconductor names, given their outsized weight in the index, single-handedly pulled the market higher.
KOSDAQ Tells a Different Story: This Year’s 14th Sell-Side Circuit Breaker
KOSDAQ, which had opened higher alongside KOSPI, failed to shake off weakness all day and closed down 38.95 points (4.63%) at 801.94. As losses deepened during the session, a program sell-order circuit breaker—known as a ‘sell-side sidecar’—was triggered, the 14th such instance this year alone. All of the index’s top ten stocks by market cap posted declines in the 2%–8% range.
On the flow side, individual investors bought a net ₩623.5 billion worth of shares, but that wasn’t enough to offset combined selling from foreign investors (₩287.4 billion) and institutions (₩346.4 billion). Market watchers see this as a wave of profit-taking that had been building up in KOSDAQ’s small- and mid-cap growth names finally coming out all at once.
Samsung Electronics Finalizes Record ₩110 Trillion Shareholder Return
The decisive catalyst behind the day’s rally was Samsung Electronics’ shareholder return announcement. On August 21, Samsung’s board resolved to carry out a shareholder return program of up to ₩90–110 trillion for 2026. That marks a scale more than five times larger than the company’s previous record—the roughly ₩20.3 trillion program from 2020—making it the largest shareholder return package in Korean corporate history.
Specifically, Samsung plans to distribute roughly ₩30 trillion in cash dividends in the third quarter, including its regular quarterly dividend, with details to be finalized at its board meeting in late October. Separately, the company also decided to allocate about ₩15 trillion toward a share buyback for employee compensation purposes. The remaining method and scale of shareholder returns—including cash dividends and share buybacks and cancellations—will be finalized at a board meeting next January, once full-year 2026 results are confirmed.
SK Hynix: From ‘Under Review’ to a ₩40 Trillion Buyback
SK Hynix’s shareholder return decision came against the backdrop of a sharp prior sell-off. The stock, which had climbed as high as ₩2.18 million last month, tumbled to the ₩1.5 million range after its U.S. depositary receipt (ADR) listing—a drop of more than 30%—and fell another 9.75% in a single day on August 19. That same day, SK Hynix’s board resolved to acquire ₩40 trillion worth of its own shares and cancel them in full. Based on the closing price the day before the resolution (₩1,662,000), that works out to roughly 24.07 million shares, or about 3.3% of the company’s total shares outstanding (730.49 million-plus shares).
This is the largest share cancellation ever carried out by a Korean listed company. The buyback will run for roughly three months starting August 20 through open-market purchases, with the shares to be cancelled in full once the buyback is complete. SK Hynix said it is raising its shareholder return policy from ‘up to 50% of cumulative 2025–2027 free cash flow (FCF)’ to ‘50% or more,’ and is also considering expanding its fixed and special dividends. Specific details on additional returns are expected to be released around its Q3 earnings announcement in late October.
Exports Add Support—Next Watch Point Is Nvidia
Fundamentals are also lending support to the semiconductor sector. According to Korea Customs Service data, exports for August 1–20 totaled $55.2 billion, up 56.0% from the same period a year earlier. Semiconductor exports alone reached $26.0 billion, surging 198.8% and marking an all-time high for the same period.
The next key variable is Nvidia’s second-quarter (fiscal) earnings report, due on August 26 local time (around 6 a.m. KST on August 27). There is optimism around potential beneficiaries in the high-bandwidth memory (HBM) value chain, but there is also talk of increased volatility stemming from valuation concerns—making this a potential turning point for the direction of Korea’s semiconductor sector going forward.
Investor Notes
- While Samsung’s and SK Hynix’s shareholder return plans are a positive catalyst, the detailed dividend amounts and share cancellation timing still need to be finalized at board meetings in late October and next January, so there is room for these plans to change.
- KOSDAQ’s sharp pullback may reflect a combination of large-cap concentration and profit-taking pressure occurring at the same time, so investors in small- and mid-cap growth stocks should stay alert to near-term volatility.
- The direction of U.S. Treasury yields and next week’s Nvidia earnings are key variables that could significantly affect the near-term direction of Korea’s semiconductor sector as a whole.
- Investment decisions on individual stocks should not be based on this article alone—readers are encouraged to conduct their own research and consult a professional before making decisions.
A pair of record-setting shareholder return announcements from Korea’s two semiconductor giants split the fate of the day’s two main indices. KOSPI held the 6,900 line, while KOSDAQ could not avoid a steep decline—and whether this divergence continues will likely hinge on next week’s Nvidia earnings report.
Sources
- Money Today – “KOSPI Recovers to 6900…Can Samsung-Hynix, Which Pushed Aside Rate Fears, Sustain the Return Momentum?” (mt.co.kr)
- Hankyung – “KOSPI Up 0.88% to 6912.95…KOSDAQ Closes Down Over 4%” (hankyung.com)
- Businesskorea – “[Market Close] KOSPI Reclaims 6,910 Line…KOSDAQ Plunges Over 4%, Sell-Side Circuit Breaker Triggered” (businesskorea.co.kr)
- Nocut News – “Semiconductors Push Through Headwinds, KOSPI Smiles…KOSDAQ Falls Over 4% Again” (nocutnews.co.kr)
- ZDNet Korea – “SK Hynix to Buy Back and Cancel ₩40 Trillion in Shares…Boosting Shareholder Returns Further” (zdnet.co.kr)
- Social Value – “Samsung Electronics Rewrites Corporate Shareholder Return History…Sets 2026 Record at ₩110 Trillion” (socialvalue.kr)
- Edaily – “Nvidia to Announce Q2 Earnings on August 26” (edaily.co.kr)