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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] Samsung Life Insurance and Samsung Fire & Marine Insurance are reportedly preparing to sell shares of Samsung Electronics as the company plans to buy back and retire its own stock.
According to financial industry sources on the 19th, Samsung Electronics will repurchase and cancel ₩3 trillion worth of treasury shares through on-market purchases over three months, starting February 17, 2025. Following the announcement of the buyback plan on November 15, the combined stake of Samsung Life (8.58%) and Samsung Fire (1.50%) in Samsung Electronics has risen to 10.08%, based on the closing price that day.
Under the Financial Industry Structure Improvement Act (FISA), financial companies must either obtain regulatory approval or sell excess shares if their holdings in affiliated companies exceed 10%. This is in line with the separation of financial and industrial capital regulations, which prohibit financial holding companies from owning stakes in non-financial subsidiaries.
In 2018, when Samsung Electronics announced a ₩9.3 trillion treasury stock buyback and cancellation plan, Samsung Life and Samsung Fire sold shares exceeding the 10% threshold. The combined proceeds from the sales totaled ₩1.385 trillion, with Samsung Life contributing ₩1.179 trillion and Samsung Fire ₩206 billion.
The upcoming sales are expected to proceed under similar conditions, potentially signaling progress in regulatory revisions under South Korea's 22nd National Assembly aimed at reforming the insurance sector.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
