Shares of Samsung Electronics tumbled 4.0% to KRW 214,500 on October 22, after the expiration of an employee and executive share buyback program stripped away a key source of buying support just as broader semiconductor anxiety gripped Korean markets. Samsung Lost Its Biggest Buyer Just as the Chip Selloff Deepened — Where Does the Stock Go From Here?
Shares slid as Samsung Electronics' massive share buyback program expired, stripping the market of its single largest source of daily buying power right when global semiconductor stocks were getting hammered. The stock fell 4.0% to KRW 214,500 on October 22, while the KOSPI plunged 3.52%, driven by profit-taking in chips, rising U.S. Treasury yields, and doubts about whether AI infrastructure spending can pay for itself.
A $360-Million-a-Day Buyer Just Walked Away
Samsung's buyback program had been purchasing more than KRW 500 billion (~$360 million) of shares per day on average.
Between August 24 and October 6, the company repurchased 56.86 million common shares for a total of KRW 15 trillion ($10.9 billion). That program is now over. The end of a buyback doesn't mean the company starts selling — but losing a recurring buyer of that scale weakens the demand side of the order book , leaving the stock exposed in a down market.
The Broader Chip Rout Made Things Worse
Samsung and SK Hynix, which together account for over half of South Korea's total market capitalization, became primary targets for selling and profit-taking.
The session reversed the previous day's gains as Meta's negative free cash flow and Tesla's scaled-back capital spending plans revived fears about AI investment returns. For Samsung, whose semiconductor division powered Q3 preliminary operating profit of KRW 107.4 trillion — on track to be its first quarter above KRW 100 trillion — any crack in the AI spending narrative hits at the heart of the bull case.
Analysts Still See Huge Upside — But the Market Doesn't Care Yet
UBS maintained a KRW 440,000 target on October 16 , while Nomura kept a KRW 670,000 target on October 19 — roughly double to triple the current price. Yet the stock sits 40.6% below its June record close of KRW 362,500. The disconnect signals that investors are pricing in cycle risk that earnings estimates haven't yet absorbed.
What Comes Next Matters More Than What Just Ended
Samsung is expected to have approved a KRW 100 trillion ($72 billion) shareholder return program in August , and brokerages flag KRW 110 trillion in total return capacity, including cash dividends and potential treasury-share cancellations. Full Q3 results arrive October 29. Whether management signals fresh buybacks or cancellations of its now-massive 2.34% treasury stake will determine if the stock finds a floor — or keeps falling.