Key facts
- Samsung Electronics is expected to announce a shareholder return plan exceeding 100 trillion won ($71.75 billion) by the end of August.
- The plan includes a special dividend and will allocate 50% of the company's free cash flow to shareholder returns.
- SK Hynix announced a 40 trillion won ($28.6 billion) share buyback and cancellation program.
- SK Hynix will cancel 24.07 million common shares as part of its buyback plan.
- SK Hynix plans to allocate at least 50% of its free cash flow from 2025 to 2027 for shareholder returns.
- SK Hynix will pay 60% of employee bonuses in shares and 40% in cash under a preliminary wage agreement.
Samsung Electronics is reportedly preparing to announce a new shareholder return policy valued at over 100 trillion won ($71.75 billion) by the end of August. The plan is expected to include a special dividend and will allocate 50% of the company's free cash flow towards shareholder returns, driven by record profits amid an AI-fueled chip supercycle. This announcement follows SK Hynix's recent unveiling of its own significant shareholder return program. The world's second-largest memory-chip maker announced a 40 trillion won ($28.6 billion) plan to buy back and cancel 24.07 million common shares, citing its belief that the stock is undervalued. SK Hynix also committed to allocating at least 50% of its free cash flow generated between 2025 and 2027 to shareholder returns. SK Hynix's buyback, scheduled from Thursday to November 19, is poised to be the largest share cancellation by a publicly listed South Korean company. In a separate development, SK Hynix has agreed to pay 60% of employee bonuses in shares and the remaining 40% in cash under a preliminary wage agreement, subject to union approval. Despite recent stock volatility, SK Hynix shares have nearly tripled year-to-date. Samsung Electronics declined to comment on the reports regarding its upcoming shareholder return plan.