Samsung Electronics and SK hynix. Yonhap News
The combined number of small shareholders in South Korea’s two chip giants, Samsung Electronics (005930.KS) and SK hynix (000660.KS), has surpassed 11 million, as hopes for a semiconductor recovery and rising share prices drew about 6.05 million new small shareholders to the two companies in the first half of this year alone.
Six Months, 6.05 Million New Investors: Samsung, SK hynix Small Shareholders Reach 11.4 Million
SK hynix had 3,461,526 small shareholders as of the end of June, according to its semi-annual report filed with the Financial Supervisory Service’s electronic disclosure system, DART. That figure accounts for 99.99% of the company’s 3,461,533 total shareholders.
The number jumped by 2,779,855 from 681,671 a year earlier, at the end of June last year. From 1,186,328 at the end of last year, it swelled roughly threefold in just six months.
Small shareholders held 484,497,952 SK hynix shares, or 67.98% of the company’s 712,702,365 shares outstanding. SK hynix classifies investors holding less than 1% of total shares outstanding as small shareholders.
Individual investors also poured into Samsung Electronics. As of the end of June, Samsung had 7,971,242 small shareholders, a record high for a half-year reporting period.
That is an increase of about 2.92 million from 5,049,085 at the end of June last year, and about 3.77 million from 4,195,927 at the end of last year. Small shareholders held 66.24% of Samsung’s total shares outstanding.
The combined number of small shareholders at the two companies comes to 11,432,768. That is an increase of about 6.05 million over six months from 5,382,255 at the end of last year.
The figure cannot be read as 11.43 million distinct investors, however, since some may hold shares in both Samsung Electronics and SK hynix.
Share Surge Draws Retail Crowd Amid Chip Recovery Hopes
The steep rise in both companies’ share prices is cited as the reason behind the surge in individual investors.
SK hynix has extended its rally since last year, supported by growing demand for high-bandwidth memory (HBM) and improving earnings. After breaking above 1 million won in intraday trading for the first time in February, the stock climbed to a record high of 2.987 million won on June 25. Based on monthly closing prices recorded in the semi-annual report, its June high reached 2.919 million won.
Samsung Electronics also began rebounding in the second half of last year and widened its gains this year. The average price of its common shares rose from 54,035 won in December 2024 to 108,724 won in December last year. It topped 150,000 won at the end of January and reached an intraday peak of 374,500 won on June 19.
While the rapid climb prompted some profit-taking by existing investors, hopes for an improving chip market and further gains are seen as having spurred an influx of new individual investors. A broad rally across the domestic stock market also lifted buying sentiment.
Expectations for stronger earnings are also building. SK hynix has sustained its earnings growth as demand for high-margin memory rises, led by HBM used in artificial intelligence (AI) servers. Samsung Electronics is also expected to see improved profitability as the memory market recovers and sales of high-value products expand.
Both companies have signaled expanded shareholder return policies. SK hynix plans to finalize and announce additional shareholder return measures next month. Samsung Electronics also plans to unveil measures to enhance shareholder value soon, balancing reinvestment for future growth against returns to shareholders.
Still, a rising number of small shareholders does not guarantee further share-price gains. With both stocks having already risen sharply, what matters now is whether the chip market, HBM demand and earnings growth meet market expectations. Investors should also be mindful that share-price volatility could widen given the sharply increased share held by individual investors.
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