Global Market: KOSPI drops over 1% as Samsung Electronics slumps on payout concerns

South Korean shares fell more than 1% on Monday, weighed down by a sharp decline in Samsung Electronics after the chipmaker’s latest shareholder return plans fell short of market expectations, Reuters reported.

The benchmark KOSPI was down 90.29 points, or 1.31%, at 6,822.66 as of 0126 GMT. Samsung Electronics dropped 6.31% after the company said last week that shareholder returns this year could reach up to 110 trillion won ($79.55 billion). Analysts viewed the potential payout as lower than expected.

The decline in Samsung Electronics overshadowed gains in some other major stocks. SK Hynix rose 1.91%, while battery maker LG Energy Solution advanced 3.93%. Samsung SDI surged 8.58% after an announcement by Samsung Display regarding a share sale plan.


Among other major stocks, Hyundai Motor fell 0.84%, and Kia Corp declined 0.31%. POSCO Holdings gained 5.65%, while Samsung BioLogics slipped 0.26%.

Of the 901 stocks traded, 506 advanced and 346 declined. Foreign investors were net sellers, offloading shares worth 1.3 trillion won.

In currency markets, the won strengthened 0.35% to 1,381.1 per dollar on the onshore settlement platform, compared with its previous close of 1,386.0.

Korean bond prices also gained. September futures on three-year Treasury bonds rose 0.05 point to 103.18. The most liquid three-year Korean Treasury bond yield eased 0.2 basis points to 3.851%, while the benchmark 10-year yield fell 6.4 basis points to 4.350%.

The broader market remained under pressure as investors weighed corporate shareholder-return policies alongside movements in bond yields and currency markets.

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