Key facts
- Samsung Electronics plans to return up to 110 trillion won ($79 billion) to shareholders.
- The record payout is driven by surging demand for AI-related memory chips.
- The shareholder return program is expected to be announced Friday.
- The plan will be funded by 50% of the company's free cash flow.
- A special dividend is anticipated as a primary distribution method.
Samsung Electronics is poised to announce its largest-ever shareholder return package, potentially reaching 110 trillion won ($79 billion), as it capitalizes on record profits from the booming artificial intelligence chip market. The company's semiconductor division reported a record operating profit in the second quarter of 2026, with net profit surging nearly 1,300% year-over-year to 90 trillion won.
The plan, expected to be disclosed on Friday after a board meeting, will distribute 50% of the company's free cash flow. While estimates vary, reports suggest the total could exceed 100 trillion won ($71.75 billion), with a significant portion likely distributed as a special dividend. This move comes as Samsung's current three-year shareholder return program nears its end.
Samsung's strong financial performance is attributed to the AI-driven memory chip supercycle. The company's consolidated operating profit for the second quarter reached 89.5 trillion won, with sales at 171.5 trillion won. This exceptional performance highlights Samsung's ability to generate substantial free cash flow, estimated at around 319 trillion won ($230.6 billion) for the 2024-2026 period, enabling such a large capital return.