Key facts
- Samsung Electronics plans a share buyback program valued at approximately 90 trillion won ($58.61 billion).
- The buyback is intended to facilitate the distribution of special stock bonuses to employees.
- Employees will receive about 10.5% of the semiconductor division's operating profit as stock bonuses.
- An estimated 40% of the bonus payout will be allocated to taxes.
- Samsung's stock saw a significant increase following the announcement.
Samsung Electronics is planning a substantial share buyback program, valued at approximately 90 trillion won (around $58.61 billion), according to Yonhap News Agency. This initiative is closely linked to a recent agreement between the company's management and its labor union, which includes distributing special performance bonuses to employees in the form of company stock. The semiconductor division will receive about 10.5% of its operating profit as these bonuses. Employees will face restrictions on selling a portion of these shares for up to two years. The company is expected to acquire treasury shares to cover the bonus payouts, which are estimated to amount to roughly 15.4 trillion won over the next three years before taxes. After an estimated 40% tax deduction, the net payout in shares is projected to be around 9.3 trillion won. Following the news, Samsung's stock opened significantly higher, reportedly up 9.35%.