April 26, 2024

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[THE INVESTOR] Several Samsung Electronics executives have sold their shares in the world’s largest smartphone maker during the firm’s stock rally in 2016.

A total of eight executives including Kwon Oh-hyun, the co-CEO and vice chairman of the firm, sold a combined 2,836 stocks, worth 5.1 billion won (US$4.3million), from Dec. 22 to Jan. 20, during which Vice Chairman Lee Jae-yong was thrown into an unpleasant spotlight for the firm’s alleged financial support to President Park Geun-hye’s longtime crony Choi Soon-sil.

 

Samsung Electronics co-CEO and Vice Chairman Kwon Oh-hyun

Choi Seong-ho, a Samsung executive vice president who had held 2,172 shares, sold 872 stocks on Dec. 28 while Lee Sang-hoon and Yoon Joo-hwa, both executive presidents, sold 173 and 180 shares, respectively, amounting to 312 million won and 321 million won.

Samsung Vice Chairman Kwon sold 400 shares, worth 720 million won, on Dec. 21, and he now holds 1,300 shares.

After bottoming out at 1,116,000 won on Jan. 29 in 2016, the shares continued to gain momentum and set new highs for the latter half of the year despite the unprecedented recall of the Galaxy Note 7 smartphone in September and the ceased sales of the troubled device in October.

Market analysts attributed the expectations for robust semiconductor business to the strong stock rally.

The operating profit of the chip business is forecast to stay in the range of between 4.5 trillion won and 5 trillion won, nearly accounting for the half of the firm’s entire quarterly operating income, of 9.2 trillion won, according to local investment firms.

The momentum that began last year continued this year as Samsung shares reached a record high of 1,940,000 won on Jan. 12.

Samsung heir Lee, who has recently avoided arrest for his alleged engagement in the corruption scandal involving President Park and her confidante, is still facing the prosecutorial probe over bribery charges.

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