Samsung Electronics faces an estimated valuation loss of 100 billion won ($76 million) despite aggressive share buybacks meant to bolster its stock price. On Feb. 3, amid a sharp market decline triggered by U.S. tariff tensions, the company’s valuation loss reportedly hit 180 billion won before recovering slightly as share prices rebounded the next day.
Samsung has spent 3 trillion won on common and preferred shares, with estimated buy-in prices of 54,000 won and 45,000 won, respectively. However, as of Feb. 4, the company’s share prices stood lower at 52,700 won for common shares and 43,300 won for preferred shares, resulting in a significant valuation loss.
Samsung’s ongoing buybacks are part of a broader plan announced on Nov. 15, 2024, to repurchase and retire 10 trillion won worth of shares over a year. Of that, 3 trillion won is being acquired between Nov. 18, 2024, and Feb. 17, 2025. By Jan. 31, Samsung reported completing approximately 89.3% of its buyback target.
Although the exact number of shares purchased and their prices were not disclosed, analysts estimate the company bought around 44.77 million common shares and 6.17 million preferred shares during the period. With average prices of 54,627 won for common shares and 45,589 won for preferred shares, Samsung appears to be facing valuation losses. As of Feb. 4, those losses were estimated at around 100 billion won.
The previous day’s stock rebound helped narrow the loss, which had exceeded 180 billion won as of Feb. 3.
While Samsung’s financial statements won’t reflect the valuation loss due to the planned retirement of the shares, the decline impacts retained earnings. Analysts say the price drop, despite substantial buybacks, dents the company’s reputation.
Adding to investor concerns is the risk of further stock volatility if U.S. President Donald Trump escalates ongoing tariff disputes.
Market unease has also been fueled by setbacks at Chinese AI startup DeepSeek and trade tensions. On Feb. 3, eight out of 20 brokerage firms that issued reports on Samsung lowered their price targets. Yuanta Securities cut its target by 17.6% to 70,000 won. IBK Securities, Korea Investment & Securities, and Daishin Securities also revised their targets downward.
Daishin Securities analyst Shin Seok-hwan noted that while Samsung’s mobile division is expected to see gains with the launch of the Galaxy S25 series, its semiconductor division faces challenges. These include seasonal demand slumps, U.S. restrictions on exports to China, delays in high-bandwidth memory (HBM) product improvements, and declining NAND sales.
Further buybacks, foundry efficiency gains, and improved HBM products may stabilize Samsung’s stock.
On a positive note, legal risks surrounding Samsung Chairman Lee Jae-yong have eased. Lee, previously indicted on charges of the unfair merger between Samsung C&T Corporation and Cheil Industries, and illegal succession of Samsung’s management rights, was acquitted again on Feb. 3.
“The resolution of Lee’s decade-long legal challenges could expedite Samsung’s strategic decisions,” said Kim Dong-won, an analyst at KB Securities. “With Lee likely to participate more actively in management, Samsung’s substantial 93 trillion won cash reserve could be leveraged to enhance corporate value,” he added.
