Stock Split

Samsung Electronics’ capitalization is 17.88 percent of the entire Korean stock market.
Samsung Electronics’ capitalization is 17.88 percent of the entire Korean stock market.

 

Companies with a stock price of over 1 million won (US$922) per share, including Samsung Electronics, Lotte Confectionary, and Amore Pacific, are mulling over a stock split for greater trading volume.

“Samsung Electronics accounts for just 0.09 percent of the total trading volume of KOSPI, and it would be well advised to pursue some shareholder-friendly measures, as Samsung SDS and Cheil Industries do,” Korea Exchange chairman Choi Kyung-soo said at a discussion session in Seoul on Jan. 20. He added, “At present, three to five KOSPI-listed companies are examining the feasibility of stock splits.” Samsung Electronics Senior Managing Director Lee Myung-jin answered that his company has pondered the matter for a while, although it has yet to decide on specific methods.

Amore Pacific Managing Director Shin Hee-cheol said in response that his company will look into the matter as well. “A low trading volume may block us from joining the KTOP 30, which is the Korean version of the Dow Jones Index,” he added, continuing, “With our stock price having gained a lot during the past one year, we will examine a stock split for our long-term business sustainability and better trading environments.”

Naver Director Cho Ki-seon mentioned that his company has split its stock once in the past, and will check the issue again if necessary in view of the change in the policy of the Korea Exchange.

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