Shown above is the head office of Samsung Electronics. The firm racked up sales of 77 trillion won ($59 billion) during the second quarter of this year. Photo courtesy of Samsung Electronics

LG faces mixed responses on Korean stock exchange

Samsung Electronics saw its share price rise for three consecutive days after it announced its second-quarter performance of double-digit growth in bottom lines.

The Seoul-based tech giant said on July 7 that it would likely log 77 trillion won ($59 billion) in sales during the second quarter of this year, up 20.94 percent from a year before.

In its earnings guidance, Samsung Electronics estimated that its operating profit would amount to 14 trillion won ($11 billion) during the April-June period, up 11.38 percent from a year ago.

The semiconductor business continued to underpin the solid performance. Its second-quarter shipments of DRAM jumped 9 percent year-on-year.

Thereafter, its share price went up 3.19 percent on July 7, 0.86 percent on July 8, and 0.17 percent on July 11.

Samsung’s cross-city rival LG Electronics faced mixed responses from the stock market after it came up with the second-quarter estimate of chalking up 19.47 trillion won ($15 billion) in turnover, up 15 percent from a year ago.

The company also estimated that its operating profit would go down 12% year-on-year to 791.7 billion won ($610 million).

On July 7, its stock value jumped 3.01 percent, but it dipped 4.07 percent on July 8 and 0.76 percent on July 11.

Experts point out that outlooks for the two representative corporations of South Korea are not favorable for the remainder of this year.

“The DRAM price would remain weak from now on, thus weighing on Samsung Electronics,” Business tracker Leaders Index CEO Park Ju-gun said.

“The virus pandemic benefited LG Electronics so much as people purchased more home appliances amid the outbreak of the novel coronavirus. As the COVID-19 recedes, however, such benefits are likely to be gone.”