Korean Stocks Stage Major Comeback After Two Circuit Breakers; Samsung Electronics Surges on Rumors of Epic '90 Trillion Won' Share Buyback

TradingKey - South Korean stocks staged a sharp rebound, with Samsung Electronics leading the entire market to surge over 7% on news of a share buyback.

During the Asian trading session on June 24, South Korean stocks rallied, with the KOSPI index opening higher and continuing to climb, jumping 3.27% to temporarily trade at

8,472.38 points. This morning, Samsung Electronics led the South Korean market, surging over 7% to 337,000 won; SK Hynix rose about 4%, with its gains currently narrowing to 2%, trading at 2.61 million won. KOSPI Index Chart, Source: TradingView

Yesterday, Korean stocks suffered a "Black Tuesday," triggering circuit breakers twice in a single day as the KOSPI index plummeted around 10%, marking the second-largest single-day drop in the history of the South Korean stock market, second only to the 12.06% plunge on March 4 this year. Among individual stocks, both Samsung Electronics and SK Hynix fell by more than 12%.

The core reason behind today's "sharp rebound" in Korean stocks lies in technical short-covering after extreme panic, combined with epic bullish rumors surrounding heavyweight stocks. After today's opening, bargain hunters who had fled during the panic selling and massive short-term funds chasing the rebound poured in simultaneously, driving the overall retaliatory rally.

Of course, this technical rebound was also catalyzed by positive news from Samsung Electronics. According to a Yonhap News Agency report, Samsung Electronics plans to spend nearly 90 trillion won (approximately $59 billion) on a massive share buyback. This epic buyback news, released amid thin market liquidity, was tantamount to announcing the arrival of a "super buyer" operating regardless of cost, instantly triggering a massive short squeeze on short sellers and leveraged margin positions.

Although today's rebound in South Korean stocks was strong, successfully reclaiming some lost ground, it is primarily a technical correction driven by sentiment and rumors of Samsung's share buyback. Whether it can truly bottom out and reverse upward depends on three key factors: the official announcement of Samsung's buyback, the long-short reshuffling in Korean leveraged ETFs, and foreign investors' expectations of HBM order visibility.

From a technical perspective, Samsung Electronics' share price has fluctuated widely in a range of 290,000 to 370,000 won over the past 30 days, and today's rebound will face resistance at the middle band of 330,000 won. If it can close firmly above this level today, it is expected to challenge the upper band of 370,000 won; otherwise, it will continue to pull back toward the lower band of 290,000 won.

Samsung Electronics Share Price Chart, Source: TradingView