The Correction is Over: The Hill Samsung Electronics Must Overcome to Reach 500,000 Won | Cha Young-joo, Director of Wise Economic Research Institute

Summary

Cha Young-joo examines why foreign investors are hesitant to enter the Korean market (FX risk, Middle East, CPI uncertainty) and then concentrates on Samsung Electronics and SK Hynix shareholder return policies. He argues Samsung is near a bottom at 230k-250k won and will climb to 500k won, with the shareholder return announcement acting as a future catalyst. He advises patience on the timing of the policy, and maintains a bullish stance on Samsung Electronics.

• Foreign investors are holding back due to potential won weakness, Middle East tensions, and upcoming US inflation data.
• Samsung Electronics is seen as undervalued near 230,000–250,000 won with strong 2025 net profit around 30 trillion won.
• The expected shareholder return policy is a major catalyst, but the speaker prefers a later announcement for maximum impact.
• He targets Samsung at 500,000 won, with 350,000 won as a key resistance level.
• SK Hynix faces tighter cash flow due to heavy investments, so its shareholder return may be more limited.
• After this week’s vacations and event risk clear, a more positive foreign flow could return next week.
• Samsung’s abundant free cash flow allows significant shareholder returns without sacrificing growth investments.