Hong Ra-hee to Gift $1.8 Billion in Samsung Shares to Jay Y. Lee

Samsung Electronics Chair Lee Jae-yong will receive a 2.6 trillion won share gift from his mother, increasing his stake from 1.58% to 1.75%. The gift includes 11.16 million shares, with the transaction set for November 12. Lee also purchased 7.67 million shares in the past six months, totaling 1.92 trillion won.

The KOSPI index fell 5.46% to 6,035.35 as foreigners sold over 4.5 trillion won, while individual investors bought 2.2 trillion won, focusing on semiconductor stocks like Samsung Electronics (005930) and SK hynix (000660). Analysts recommend AI infrastructure sectors over defensive stocks, citing strong potential in domestic semiconductor companies.

Samsung Electronics completed a 15 trillion won share buyback early, raising concerns about a supply-demand gap in the Korean stock market. The KOSPI index fell over 6% on heavy foreign selling. Samsung Electronics' stock dropped 15.17% since the buyback ended, with SK Hynix also declining. Analysts attribute the market decline to reduced corporate buying and semiconductor sector worries.

Samsung and SK Hynix shares dropped 8% and 4% respectively, as Broadcom and Intel executives warned of financing constraints for AI infrastructure. Nvidia's China AI chip market share fell to 34% in H1 2026, while Huawei gained 28%, according to IDC. The comments triggered a sell-off in AI-linked stocks.

Samsung Electronics reported a quarterly operating profit of 10.74 trillion won ($7.7 billion), highlighting a semiconductor boom. Analysts warn that South Korea's heavy reliance on chip exports and tech shares makes it vulnerable to AI investment slowdowns. Semiconductors accounted for 25% of South Korea's total exports last year, and a retreat in AI demand could impact exports and the stock market.

Asian tech stocks fell Tuesday, led by declines in SK Hynix (8%), Samsung Electronics (7%), and SoftBank Group (9%). Chipmakers and AI-linked companies were impacted by U.S. semiconductor sell-offs. The Nasdaq Composite dropped 0.44% and Micron Technology fell 3.9% on Monday. Investors are reassessing AI valuations and competition in the memory-chip market.