KRX : 005930 / 005935

Samsung Preferred Share Buyback & Discount Simulator

Analytical model for Korean equity buybacks, spread compression, and governance convergence
Status: Simulated Successfully
TVL: 10.0 Trillion

Capital Allocation Workbench

v2.6 Real-Time Engine
Preset Scenarios (Bloomberg Benchmark)
10.0 Trillion KRW
1.0T KRW 10.0T (Baseline) 30.0T KRW
50.0%
0% (All Common) 50% (Balanced) 100% (All Preferred)
Current Common Stock Price (005930) 70,000 KRW
Reported Korean Governance Discount 45.0%
Initial Preferred Price (005935) 38,500 KRW
Bloomberg Market Context: South Korean non-voting preferred shares historically trade at an excessive ~45% discount due to corporate governance skepticism. Buybacks explicitly retiring preferred stock create acute float compression, forcing direct valuation convergence.

Spread Convergence & Valuation Dashboard

D3 Dynamic Curve
Discount Narrowing
22.5%
Final Discount: 22.5%
Spread Compression
2250
Basis Points (bps)
Pref. Price Gain
+40.9%
Target: 54,250 KRW
Total Value Locked
10.0 Trillion
KRW Capital Program

Dynamic Price Convergence Path

Common vs. Preferred share valuation trajectory across cumulative buyback execution

Common (005930)
Preferred (005935)
Spread Gap
Capital Allocation Breakdown & Valuation Impacts
Security Class Capital Deployed Estimated Repurchased Shares Post-Action Price Per-Share Value Created
Preferred (005935) 5.0 Trillion KRW 107.8M shares 54,250 KRW +40.9% (+15,750 KRW)
Common (005930) 5.0 Trillion KRW 70.1M shares 71,300 KRW +1.9% (+1,300 KRW)
Research Grounding & Bloomberg Sources: South Korean preferred stock discounts have historically widened up to 45% (with individual peaks exceeding 80%) due to the "Korea Discount" and non-voting status. In prior corporate buyback campaigns, Samsung Electronics compressed the spread down to 4.8% by aggressively buying and cancelling preferred shares.
Verified Status URL: Bloomberg via X (@business)