Samsung Electronics stock plunges despite record earnings

Samsung Electronics shares plummeted following a record-breaking earnings announcement that was delayed by approximately one hour from the expected time. Professor Kim Kwang-seok criticized the delayed disclosure of both Samsung Electronics and SK hynix, noting these companies account for 57% of the KOSPI market.

Despite Samsung Electronics announcing record-breaking earnings, the market experienced a "shock" as its stock price plummeted. As the gap between earnings figures and stock prices widens, causing increased confusion among investors, fundamental criticisms have been raised regarding the way corporations disclose their financial results.

In a live broadcast from The Man Who Explains the Economy (Kim Kwang-seok TV), the market reaction following Samsung Electronics' earnings announcement was examined alongside the systemic issues within the earnings disclosure systems of major domestic companies. Pointing out the massive weight Samsung Electronics and SK hynix hold in the KOSPI market, Professor Kim Kwang-seok noted that the earnings announcement methods of these companies lack "etiquette" toward investors.

"Record earnings, but stock price adjusts"… Mixed market reactions

Samsung Electronics released figures through this earnings announcement that were sufficient to meet market expectations. However, the stock price moved in the opposite direction, undergoing a correction. Professor Kim began an analysis of why such a correction occurs despite Samsung Electronics achieving record earnings, emphasizing the influence that the timing of a company's earnings announcement has on the market.

In particular, Professor Kim strongly criticized the fact that the earnings announcements for Samsung Electronics and SK hynix were later than the time the market expected. "Samsung Electronics and SK hynix are companies that account for 57% of the KOSPI, and countless citizens and investors wait for their earnings announcements," he said, adding, "It is basic to provide a clear announcement time at least one day in advance and to stick to that time." He specifically cited that SK hynix's earnings announcement yesterday was later than scheduled, and today's announcement from Samsung Electronics was also delayed by approximately one hour from the time the market expected.

"Wasting the time of 20 million investors"… Criticizing corporate disclosure manners

Professor Kim defined the delay in corporate earnings disclosure not as a simple administrative error, but as an act that undermines the economic value of investors. He explained this using an example from his own lectures. "If I promised to meet 500 students at 10:00, it is right to arrive and wait by at least 9:30," he said, pointing out that "breaking a promised time is stealing the time of those who are waiting."

This logic was applied even more strictly to the case of Samsung Electronics. "Samsung Electronics is a company that meets approximately 20 million investors," Professor Kim said, criticizing the method of "releasing earnings data just before a conference call as something that makes numerous investors waste their time." He added, "Not only Samsung Electronics but all domestic companies, including SK hynix, should possess the manners to disclose data before the conference call during earnings announcements." He explained that such actions hold "economic value" by ensuring investors have time to grasp information in advance and respond to the market.

Questions regarding the "basics" of the domestic corporate disclosure system

Professor Kim suggested that the earnings disclosure practices of major domestic companies need improvement in terms of global standards and investor convenience. He pointed out, "While some companies announce earnings precisely immediately after the market closes, when there is a discrepancy between the announced expected time and the actual time, as seen with Samsung Electronics or SK hynix, the market cannot help but experience confusion."

He continued his live broadcast by emphasizing that for a company to clearly announce its earnings announcement time and adhere to it is more than just fulfilling a promise; it is an important duty to meet the expectations of the public and increase market efficiency.

Source: original video (YouTube)