Samsung Life shares rally as governance issue looms on likely stake sale
Jae-Yeon Ko
Sep 02, 2020 (Gmt+09:00)
Shares of South Korea’s largest life insurer, Samsung Life Insurance Co., have rallied in recent sessions on expectations that the company will be forced to sell part of its stake in Samsung Electronics if the proposed change in the insurance act passes the National Assembly.
Market analysts, however, warn retail investors of speculative buying in anticipation of an overhaul in Samsung Group’s governance structure.
On September 1, when the National Assembly opened its regular session to debate law revisions, Samsung Life shares surged for a third day to close up 7.2% at 65,600 won, the biggest percentage gain in three weeks. The stock has risen as much as 38% in the past month.