Key facts
- Samsung Electronics expects 90-110 trillion won for shareholder returns in 2026.
- This is the largest shareholder return initiative in the company's history.
- A cash dividend of approximately 30 trillion won is planned for the third quarter.
- The company will buy back 15 trillion won of its own shares for employee bonuses.
Samsung Electronics Co. announced Friday that it anticipates allocating between 90 trillion and 110 trillion won for shareholder returns in 2026, a figure that would represent the largest investor returns by any South Korean company to date. The company's board of directors approved the plan following a meeting.
This substantial return initiative is part of Samsung Electronics' three-year shareholder return policy for 2024-2026, which aims to distribute 50 percent of its free cash flow to shareholders. The planned returns for 2026 are approximately five times larger than the previous record of 20.3 trillion won set in 2020.
In the third quarter, Samsung Electronics intends to pay cash dividends totaling around 30 trillion won. The final details of these dividends are expected to be confirmed at a board meeting in late October. The scope and methods for distributing the remaining shareholder returns will be determined in January, coinciding with the finalization of the company's annual earnings.
The company's strong financial performance, with a second-quarter net profit jumping nearly 1,300 percent to 90 trillion won year-on-year, driven by robust demand for AI-related semiconductors, underpins this ambitious shareholder return plan. Following the announcement, Samsung Electronics' shares rose by 3.87 percent on the Korea Composite Stock Price Index (KOSPI).
This move by Samsung Electronics occurs amid a broader trend of increased shareholder returns in the semiconductor industry, highlighted by a similar announcement from its rival SK hynix Inc. SK hynix recently revealed plans to buy back 24.07 million common shares, valued at 40 trillion won, as part of its commitment to return up to 50 percent of its cumulative free cash flow from 2025 to 2027.
Additionally, Samsung Electronics' board decided to repurchase approximately 15 trillion won worth of its own shares. These repurchased shares are intended to fund special performance bonuses for employees.