SEOUL, KOREA - Samsung Group stocks such as Samsung Electronics and Samsung C&T took the beating on June 9 as investors raised suspicions whether Samsung Group would transform itself into a holding company governance structure. As several Samsung stocks fell, the whole KOSPI was dragged down as well.

 

At 1:56 pm on June 9, Samsung Electronics shares were traded at 1.41 million won, down 3.23 percent from the previous trading day's 1,457,000 won. The prices of Samsung C&T (-6.98%), KCC (-3.33%), Samsung SDI (-2.08%), and Cheil Industries (-1.36%), the companies that had benefited from the rumor of a group-wide governance structure reform, all slipped.

 

On the same day a newspaper reported a story about the group that its bid to turn toward a holding company is not realistic. Analysts said the day's fall was largely because of the disappointment by institutional investors over the negative story. On the day, institutional investors have so far net-sold 52.7 billion won in the electric/electronics sector that includes Samsung Electronics and 48.2 billion won in the retail sector that includes Samsung C&T.

 

As large-cap Samsung shares fell, the KOSPI has also been negatively affected. The KOSPI had shown strength in the morning session hovering above the 2,000 level before losing 7.27 points (-0.36%) to 1,937.83 as of 1:56 pm.