[NewsNow] Starting today, we'll buy "10 trillion" of our treasury stocks...Should Samsung Electronics Shoot a Signal of Resurrection?

■ Host: Anchor Jung Ji-woong
■ Starring: Critic Kwon Hyuk-joong

* The text below may differ from the actual broadcast content, so please check the broadcast for more accurate information. Please specify [YTN NewsNOW] when quoting.

[Anchor]
Ask a professional about a hot issue. It's an issue call. Last week, Samsung Electronics, the No. 1 market cap, lost face. Samsung Electronics' stock price, which once exceeded 100,000 electronics, fell to 40,000 electronics in four years and five months. In the end, after the market closed last Friday, Samsung Electronics announced a plan to buy 10 trillion won worth of treasury stocks. In order to defend the faltering stock price, it will buy 10 trillion won worth of treasury stocks from today to February 17 next year, of which 3 trillion won will be destroyed. With this news, Samsung Electronics started higher by more than 6% today. Let's take a look at the prospects of Samsung Electronics and the domestic stock market. Kwon Hyuk-joong's economic commentator is connected. You're out, right?

[Recommending]
How are you?

[Anchor]
How are you? First, Samsung Electronics got off to a good start today. The news of the treasury stock purchase announced last week was a positive factor, right?

[Recommending]
That's right. The news of the treasury stock purchase led to the uptrend, you can see it like this. First of all, Samsung Electronics jumped more than 7% on the 15th. Among them, the characteristic is that foreigners came back as net buyers. Then, when it was announced after the market, it announced that it would buy 10 trillion won worth of treasury stocks in installments over the next year, and 3 trillion won of them would be strategically incinerated within three months. As this issue affected today's market, it started to rise by more than 6% during the day, which is currently rising by 5.42%. So, you can think of it as a favorable effect on Samsung Electronics, such as treasury stock split purchases or incineration issues.

[Anchor]
In 2017, after the announcement of the treasury stock purchase, the stock price soared by more than 50% over nine months. The expectation is bound to grow, but the situation is a little different now than then?

[Recommending]
It's different. First of all, it's true that the share buyback continues the good flow of the stock price. First of all, in 2017 or 2018, the institution purchased 9.3 trillion won of treasury stocks from October 2017 to November 30, 2018. There was a part where it was incinerated, but at that time, it went up by 49.94% after 10 months from January 24, 2017, when I saw it from January 24, 2017. So it continued to flow very well. Then after that, it started to return the increase and ended, so it only rose 9.65% until November 30, 2018. So, it definitely continued the good trend in the beginning. But the difference between then and now is that it was the best performance at that time. It achieved its highest performance for two consecutive years in 2017 and 2018, and some of you may remember it at that time, but in 2017, annual operating profit exceeded 50 trillion won for the first time. At that time, there were also treasury stocks burned, but for now, the performance was momentum, so this continued a great trend for the stock price. However, in a different case from now, I will tell you that the business itself is not so good.

[Anchor]
Then, in the current situation, how do you predict whether this share buyback issue will cause a rebound in Samsung Electronics' stock price in the future or will it be only a temporary rise?

[Recommending]
I'll think that it's not a basic trend. First of all, there are no events in our market. There are a lot of events in the U.S. However, there are no events in our market right now, and in this situation, Samsung Electronics announced the issue of treasury stock purchase or retirement. So it helps with a temporary rise. So, this helps restore investor sentiment, but if you only look at Samsung Electronics, if the fundamentals keep going like this, I think the stock price will not last long. So in the long run, performance should be linked. So, if the performance comes out, I can go in a good mood in conjunction with this issue of treasury stock retirement, but if there is an issue called HBM, which cannot be linked to performance, I may end up in a temporary atmosphere. So I think it's hard to say that the stock price is going upward in the long run, considering the current situation.

[Anchor]
First of all, the KOSPI is also on the rise today thanks to the rise of Samsung Electronics. However, compared to major stock markets around the world, Korea is particularly sluggish. What's the reason?

[Recommending]
First, there is a part where the transaction price has decreased. First of all, the market will go around only when there is money, but as you all know now, this money is falling into the United States or into coins. The start was the gold fight, then the uncertainty of the U.S. presidential election. But this issue is over now. But in the meantime, many investors went to the New York Stock Exchange at that time. Because I made a lot of money by investing in America.Since this is widely known, many people left the KOSPI and KOSDAQ in Korea and moved to all three major New York stocks, and that's when it started. Then, the transaction starts to fall. If you think about the current situation, isn't the U.S. presidential election over? As a result, he was excluded from secondary batteries, automobiles, and semiconductor stocks in line with the Trump trade. So, the part where the transaction price itself was reduced is that it is not recovering, so as the vicious cycle became more, there were many people who said that it was not fun for domestic investors. I can tell you that the biggest reason is the Trump trade, but as I said earlier, it is missing a lot from secondary batteries, cars, and semiconductors. This has something in common. These three. It is a large stock that has led Korea's stocks. However, as the amount falls out of here, the upward momentum will inevitably weaken as capital falls out as the money falls out, so even more so, as those who invest lost money, there were many people moving money to the other side. So there should always be some events, but there were no friendly events in the Korean stock market at all. In such a situation, Samsung Electronics prepared a good event, and this created an atmosphere that could clearly evoke the atmosphere.

[Anchor]
We will see if Samsung's cardiopulmonary resuscitation, called treasury stock purchase, works well. I was with Kwon Hyuk-joong, an economic critic. Thank you, critic.

[Recommending]
Thank you.