Key facts
- Samsung Electronics expects shareholder returns of up to 110 trillion won ($79.54 billion) this year.
- This includes 30 trillion won in cash dividends planned for the third quarter.
- The company committed 50% of its free cash flow from 2024 to 2026 to shareholders.
- Samsung also bought back shares worth 15 trillion won for employee stock bonuses.
- The planned returns are more than five times the previous high of 20.3 trillion won in 2020.
Samsung Electronics plans to return as much as 110 trillion won ($79.54 billion) to investors this year, a move that would be the largest shareholder return program in South Korea's history. The company, which has seen earnings soar due to the AI boom's demand for chips, is responding to investor pressure to share record profits.
The planned returns are more than five times the previous high of 20.3 trillion won in 2020. The program includes 30 trillion won in cash dividends for the third quarter and a commitment to allocate 50% of its free cash flow from 2024 to 2026 to shareholders. Samsung also bought back shares worth 15 trillion won for employee stock bonuses.
Remaining payouts will be decided at a January 2027 board meeting, considering cash dividends, share buybacks, and cancellations. Despite the announcement, Samsung shares fell as much as 2.6% in post-market trading, as some investors had anticipated returns of up to 150 trillion won. "Some investors have recently expected up to 150 trillion won of shareholder returns, which explains the post-market share action," said Kim Minji, a portfolio manager at Must Asset Management.
This initiative follows SK Hynix's announcement of a 40 trillion won buyback plan, also driven by the AI boom. Analysts suggest these moves could foster a more shareholder-focused management style in the Korean market.