April 20, 2024

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[THE INVESTOR] Samsung Electronics' shares have been on an upward swing despite risks caused by the latest influence-peddling scandal involving President Park Geun-hye and her confidante Choi Soon-sil.

The share price rose a high of 1,760,000 won (US$1,504), up 2.44% on Dec. 6. The stock closed up 1.75 percent at 1,748,000 won.

It has picked up momentum since the electronics giant announced on Nov. 29 that it is considering to split the company into two -- a holding company and a business body -- and will increase dividends for shareholders by 36 percent per share to 28,500 won.

“The possible change in the ownership structure of Samsung Group will likely have a positive impact on the shares of Samsung Electronics,” said Lee Jeong, an analyst from Yujin Investment & Securities,

On Dec. 6 when heir apparent Samsung Vice Chairman Lee Jae-yong took part in a parliamentary hearing where he was questioned on the connection between a merger of two Samsung affiliates and Choi Soon-sil.

Samsung has been accused of offering funds of more than 30 billion won for bogus organizations run by Choi.

The long-time confidante of President Park, in return, allegedly exerted her influence to make the National Pension Service, one of the largest shareholders for Samsung C&T, vote in favor of the construction firm’s merger with materials firm Cheil Industries at a shareholders meeting.

By Kim Young-won (wone0102@heraldcorp.com)