Key facts
- Samsung Electronics plans to return at least 100 trillion won ($72.4 billion) to shareholders.
- The company expects to announce the initiative at a board meeting soon.
- This move aligns with Samsung's policy to return 50% of its free cash flow.
- A special dividend is anticipated as a primary method of return.
- Samsung's second-quarter net profit surged due to strong AI-driven semiconductor demand.
Samsung Electronics Co. is set to announce a significant shareholder return program, potentially its largest ever, amounting to at least 100 trillion won (US$72.4 billion). Industry sources indicate the announcement could come as early as Friday or next week, following a board meeting.
This initiative aligns with the company's three-year shareholder return policy for 2024-26, which mandates returning 50 percent of its free cash flow to shareholders. Observers anticipate a substantial special dividend, fueled by an estimated annual operating profit of 390 trillion won. The company may also engage in share buybacks to fund employee bonuses.
The surge in Samsung's second-quarter net profit, which jumped nearly 1,300 percent to 90 trillion won year-on-year, is attributed to robust demand for AI-related semiconductors. This strong performance has boosted investor confidence, with Samsung Electronics' shares rising nearly 3 percent on the Korea Composite Stock Price Index (KOSPI).
Samsung's move follows a similar announcement by competitor SK hynix Inc., which revealed a plan to buy back 24.07 million common shares worth 40 trillion won as part of its commitment to return up to 50 percent of its cumulative free cash flow from 2025 to 2027.