'50,000 Again' Samsung Electronics Net Selling by Foreigners...Realizing the crisis?

■ Host: Kim Sun-young Anchor
■ Starring: Jeong Chul-jin, Economic Critic

* 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]
Samsung Electronics' stock price has fallen back to the 50,000 won level, showing weakness. Foreigners are continuing their longest net selling in history, and some are calling for a crisis. Let's take a look at the economic news with Chung Chul-jin, an economic critic. Welcome. I went to 50,000 electrons, but why does it drop so much?

[Jung Chuljin]
If someone sells a lot of stocks, wouldn't it fall? Foreign investors have sold a lot, so they've come this far. Let's say this is supply and demand. In terms of materials, Samsung Electronics has come to HBM3, which is the memory of AI semiconductors, which is said to be the trend now. Because we didn't finish the 8th and 10th stages, both supply and demand and materials were sluggish, and more importantly, stocks are looking ahead. However, this situation, where I don't think anything would be good even though I looked ahead, made Samsung Electronics' current stock price.

[Anchor]
There are a lot of people who invest in stocks, so there are many stories about Samsung Electronics, but there is also a saying that it is 5 insurance companies. So if you see a 5 letter in front of you, buy it. This is what it means.

[Jung Chuljin]
You need to check a little more. Until yesterday, foreign investors were net sellers for 26 consecutive trading days. Until now, however, foreigners have been selling when they wake up and selling when they wake up and selling when they wake up, and this consecutive net selling has been 25 trading days. But I renewed it. But when I left it in the morning today, I don't think foreigners will buy it. This means that as soon as the market starts, we start by stacking orders from foreign securities companies. This means that foreigners don't seem to want to buy Samsung Electronics yet, and the supply and demand has not yet been made. More importantly, in terms of materials, it's time to let the market know that the contract with Nvidia has been signed, which is about halfway through October.

Given that there is no such news, it can be said that there are no clear signs of recovery or rebound in terms of materials yet. Then what should I do? People usually talk about two stock prices. The first one is PBR. That's why we're closing Samsung Electronics today. Then, don't you have the money that comes out when you sell semiconductor equipment and semiconductors? Compared to this and market capitalization, the magnification is called PBR, but it's a little more than one time now. So it doesn't make sense that one ship is broken, it's Samsung Electronics, but it's the world's best Samsung Electronics. But it's been broken in the past. So I went under 0.9 times, but in terms of price, it's around 57,000 won to 58,000 won, so many individuals are looking at this. Next, there is an important part that says, "If you really go this far," and there is a proportion of foreign investors in Samsung Electronics. It's sold 56% of it before, and it's sold more than 11 trillion won since September.

So this ratio has reached 53% and 52% now, but 50% of this was broken in the past. It's a line that breaks even 50%. Then we have to sell 10 trillion more. If that happens, the lines we went to in 2022 are in the early 50,000 won range. I have to think about this, so at least one person who is aiming for Samsung Electronics right now buys a net purchase one day, but not one day. You bought it for at least 4 or 5 trading days, and you've sold 11 trillion won since September. If you buy more than 2 trillion won, you can follow me. From now on, I think it's an area to respond rather than go ahead and do something.

[Anchor]
As a result, come back to the Future Strategy Office now. Lee Jae-yong, come back as a registered executive. Take out all the cards you can take out. It's a crisis right now. We're talking about this. In fact, Lee Jae-yong's leadership is in crisis, can we see it like this?

[Jung Chuljin]
I think many people sympathize with the crisis of organizational culture. Then who created the organizational culture? I think we can talk about Chairman Lee Jae-yong's leadership like this. In the past, there was a culture of Samsung Group, especially Samsung Electronics. I went to work on Saturdays and Sundays and just stayed up all night. Times were different. In a culture where he works that much and is rewarded that much, Chairman Lee Jae-yong applied the culture of a new era because, as you just said, times have changed. So, we tried to improve the organizational culture very much with the cultures and evaluations conducted by companies in advanced countries, but that culture does not change overnight.

So when I changed it, it got better on the outside, and it became very sophisticated. Samsung Electronics is also said to have changed because of the influx of talented people, but this is only a bluff, and the purpose of the reorganization of the original cultural organization is not clear at all about the responsibility for what they did and the credit.

[Anchor]
There's also a scary story like this that there will be a strong wind.

[Jung Chuljin]
However, I think there will be hope when the wind blows. However, even if there is no strong wind or wind, the organization cannot drag on like it did in the past, and this would be a really big crisis.

[Anchor]
There are rumors that Lee Jae-yong is in a crisis of leadership, but there are places where the atmosphere is different. Hyundai Motor is said to have the best financial performance ever, but the atmosphere is very good internally?

[Jung Chuljin]
However, Hyundai Motor also seems to be very different from Hyundai Motor in terms of stock price and Hyundai in terms of performance. As you said, the organization and performance are good, and the vision is presented next week. On October 22, the Indian stock market will be IPOed, and many people say that the maximum subscription fee will probably be concentrated and the success will be huge, but Hyundai Motor's stock price is also plummeting. So, from investors' point of view, Chairman Chung Eui-sun is doing well, and there are claims that there is a risk that Hyundai Motor does not know or the market does not know that the stock price is falling like this when the performance is so good. It's the two main pillars. Both Samsung Electronics and Hyundai Motor are collapsing at the stock price level.

[Anchor]
In the case of Chairman Chung Eui-sun, he is now in office for four years, but there is also an evaluation that internal evaluation has completely improved the internal system.

[Jung Chuljin]
There is an evaluation view, but shouldn't it always be felt by the Korean people and investors? In that sense, I said earlier that there were some conflicting opinions. Many say it's about returning shareholders, but the stock price is almost plunging today. In that sense, isn't it time to consider the aspect of shareholders as well? Jeong Eui-sun's leadership. I would like to suggest that.

[Anchor]
Anyway, you described it as a big axis of the stock market, but the two companies leading the two pillars...

[Jung Chul-jin]
As the stock prices of the two companies fell, the KOSPI also became a worse director than Russia, which is at war. [Anchor] Semiconductor stocks are likely to have a big impact, how do you forecast it?

[Jung Chuljin]
We also need to talk about semiconductor stocks separately. It is said that we are strong in memory semiconductors, but the memory field is divided into two. We have become a common term these days, and a general-purpose semiconductor called legacy DRAM and an HBM used in AI chips, that is, a high-bandwidth memory semiconductor, are emerging. Samsung Electronics can't go this way. However, the legacy general-purpose semiconductor, which is called a general-purpose semiconductor, is getting very difficult due to the sluggish economy and sluggish demand. This is because Samsung Electronics is struggling, while Hynix, which is going to HBM3 8th and 12th levels, is also holding out very well, depending on Nvidia. As such, it has become a Korean semiconductor industry where light and shade are divided even within the same semiconductor.

[Anchor]
I'll also talk about prices. These days, a lot of people talk about cabbage prices, and next month is the kimchi-making season. I don't think the price is going down right now, how can I see it?

[Jung Chuljin]
Although it fell, the price of cabbage in November next month seems to be so high that it will open its mouth, but you've probably heard a lot about the high price of cabbage, and it costs more than 10,000 won per head, 20,000 won. But now, it has fallen to 6,000 won and 5,000 won, but it can't be said that it has fallen because in November, cabbage is the most supplied. Demand is soaring, but so is supply. This is because cabbage is harvested four times in Korea, and it is usually difficult because April and September do not have the most summer cabbage, but cabbage is poured from October and November. With autumn cabbage. Nevertheless, the price per cabbage, which is around 5,000 won in November, is the highest ever. In addition, as you said, because it's kimchi-making season, in practice, many families may feel burdened by the price of cabbage.

[Anchor]
Kimjang is a kimchi maker, but there are so many foods that use kimchi that can even increase the price of eating out, and this has become precious as I've been walking around these days. I heard that tomatoes are falling out right now, so I heard there's a hamburger without tomatoes.

[Jung Chuljin]
That's right. But I think this is also a case-by-case. I saw the news yesterday and went to Sangam-dong. But there were tomatoes there. But some stores are missing tomatoes. In that case, it is said to compensate for other food service gift certificates or prices. Currently, McDonald's Korea uses domestically supplied tomatoes. However, all vegetables are in poor crop conditions as much as cabbages, and all are abnormal. The abnormal climate is something that the Korean people probably experience, so tomatoes are also in short supply due to sluggish crops and soaring prices, so hamburgers are not a product with a large margin.

[Anchor]
A picture of a hamburger is coming out, but in fact, the tomato and lettuce are the key in the hamburger. But I heard that lettuce is also falling out now.

[Jung Chuljin]
Yes, it's also a shortage of lettuce in Lotteria. So for the time being, these phenomena are likely to last quite a long time, but the problem is that abnormal climates have been more than once in the past. Then, come back after that. So, it was hard one year, but in the following year, for example, if cabbage went up in price this time or tomato went up in price, farmers built a lot of them. As a result, prices fell and there was a problem, but now the climate has continued for more than two or three years, so overall structural vegetable prices, food prices, and level-up levels could come out.

[Anchor]
Should the hamburger recipe be changed?

[Jung Chuljin]
Or the price band will go up. We're even in that situation.

[Anchor]
Since it's a strange climate, I think it creates a very bitter landscape that has changed the taste of hamburgers. This has been Jeong Cheol-jin, an economic critic. Thank you.