[Edaily Reporter PARK MIN ] SamsungElectronics(005930)and SK hynix(000660), which together account for about half of the KOSPI’s market capitalization, have emerged as major new players in the stock market’s supply and demand dynamics following their large-scale share buybacks. These buybacks are categorized under “other corporations” in market data, and some analysts suggest that “other corporations” have been acting as a “pillar of support” for the stock market by offsetting foreign investors’ net selling with nearly 7 trillion won in net buying over the past five days.

According to the Korea Exchange on the 26th, “Other Corporations” made net purchases totaling 6.9745 trillion won in the KOSPI market over the five trading days from the 20th through the 26th. They have consistently recorded net purchases of over 1 trillion won each day: △1.0539 trillion won on the 20th, △1.0931 trillion won on the 21st, △1.6374 trillion won on the 24th, △1.5920 trillion won on the 25th, and △1.5980 trillion won on the 26th.

During the same period, foreign investors recorded net sales of 6.0548 trillion won, while retail investors posted net sales of 1.3106 trillion won and institutional investors recorded net purchases of 404.4 billion won. It appears that “other corporations” absorbed the bulk of the over 6 trillion won in net sales by foreign investors over the five-day period.

Behind this “trillion-won” level of net buying by “other corporations” lie large-scale share buybacks by SamsungElectronics and SK hynix. “Other corporations” refers to non-financial general companies—that is, general corporations such as SK hynix, SamsungElectronics, and HyundaiMotor—as opposed to financial institutions. Consequently, when a company buys back its own shares on the open market, the volume is classified under “other corporations” as the buyer.

Previously, on the 19th, SK hynix’s board of directors decided to purchase 24.07 million shares of its own stock on the open market for 40.0043 trillion won and subsequently cancel the entire lot. The purchase volume represents approximately 3.3% of the company’s issued shares, marking the largest share cancellation by a domestic listed company to date. The acquisition period runs from the 20th through November 19.

SamsungElectronics also decided on the 21st to repurchase approximately 15 trillion won worth of its own shares for employee compensation. SamsungElectronics plans to purchase approximately 53.29 million common shares on the open market, with the acquisition period running from August 24 to November 21.

Generally, the KOSPI tends to decline when selling pressure from a specific group—such as foreign investors, individual investors, or institutions—is particularly intense. However, some analysts suggest that SamsungElectronics and SK hynix—which together account for about 50% of the KOSPI’s market capitalization and effectively drive market trends—are acting as a “support level” for the market by purchasing their own shares to counteract the selling pressure.

In fact, on the 25th, the KOSPI fell 4.3% from the previous close early in the session due to large-scale net selling by foreign investors, but recovered its losses thanks to gradual buying by other corporate entities and ultimately closed up 45.78 points (0.68%) at 6,742.74. On this day as well, the index opened 0.23% lower than the previous close but closed up 0.97% at 6,808.21.

On this day, retail investors and foreign investors net sold SK hynix shares worth 709.2 billion won and 385.0 billion won, respectively; however, the stock closed flat at 1,688,000 won (KRX standard) as other institutional investors supported the market with net purchases totaling 1.00886 trillion won. SamsungElectronics saw retail investors net sell over 1 trillion won worth of shares, but thanks to net buying of 665.5 billion won by foreign investors and 481.6 billion won by other institutional investors, the stock closed at 261,500 won, up 1.75% from the previous session.

However, industry experts caution that this phenomenon cannot be generalized, as large-scale share buybacks do not necessarily prevent downward pressure on the stock market. Looking back at stock market history, more than half of the companies on the KOSPI that announced share buybacks saw their stock prices fall after the announcement.

A securities industry official pointed out, “Share buybacks themselves do not guarantee a rise in stock prices or prevent a decline,” adding, “If fundamental negative factors—such as deteriorating corporate earnings or a slowdown in the business cycle—overwhelm the effects of share buybacks, stock prices can fall at any time.”

He continued, “However, given the overall weakening of market supply and demand following the July market downturn, the share buybacks by the ‘top two by market cap’—which have recently emerged—clearly represent a powerful force in the market,” adding, “It is worth watching whether the buying pressure from these top two companies will act as a new variable in KOSPI supply and demand.”