Samsung Electronics common and preferred shares: what is the difference?

Samsung Electronics has two classes of shares listed on the Korea Exchange: common shares under code 005930 and preferred shares under code 005935.

Voting rights and dividends

Samsung Electronics’ common shares carry voting rights; its listed preferred shares generally do not. The preferred shares are non-cumulative and carry an annual cash-dividend premium based on par value, set out in the company’s articles of incorporation. That premium is annual, so individual quarterly dividends can be the same for both classes, and the preference does not guarantee that a dividend is paid.

Why they trade at different prices

Differences in voting rights and dividend terms can affect how investors value each class. The price gap between them changes over time with demand, liquidity and dividend expectations.

What to check

When you read a price, a chart or a broker note on Samsung Electronics, check which class it refers to. For index data and ETF holdings, check the share-class code and whether that class is included. For foreign ownership figures, check the share class and the reporting date.