Samsun Electronics has two ticker in South Korea: 005930 (common stocks), and 005935 (preferred shares).
The main difference is voting rights – 005935 has no voting rights.
| Common | Preferred | |
|---|---|---|
| Korea ticker | 005930 | 005935 |
| Voting rights | One vote per share | No voting rights |
| Business exposure | Samsung Electronics | Same Samsung Electronics |
| Dividend | Standard dividend | Almost identical dividend—only ₩1 more annually |
| Liquidity | Higher | Lower |
| Typical valuation | Trades at a premium | Trades at a discount |
The discount is large. Recently it’s larger at over 25% or 30%+.
The main reason is probably ETF buying.
Passive funds, index futures hedging and most Samsung-focused ETFs direct their purchases into 005930, not 005935.
And for some strategic investors, voting rights is meaningful.
However, this is still a large discount – Google Class C vs Class A common shares discount is within 0.5%.
ETFs buy both Google A and C.