TLDR
- Samsung Electronics is set to announce a shareholder return programme worth more than 100 trillion won ($72 billion)
- The plan will be approved at a board meeting before the end of August
- The programme will be funded by 50% of Samsung’s free cash flow
- Returns will focus mainly on cash dividends rather than buybacks, due to regulatory concerns
- The news follows SK Hynix’s 40 trillion won ($29 billion) buyback plan announced Wednesday
Samsung Electronics (005930) stock surged 9.49% on Thursday after media reports revealed the company is preparing a shareholder return programme worth more than 100 trillion won ($72 billion).
Samsung Electronics Co., Ltd., SMSD.L
The report, published by MoneyToday and citing industry sources, said Samsung plans to hold a board meeting before the end of August to formally approve the package.
If confirmed, it would rank among the largest shareholder return programmes ever announced by a South Korean company.
The programme is expected to be funded through 50% of the company’s free cash flow. Samsung flagged last month that its board was already discussing this year’s return plan, including the possibility of special dividends.
The focus is expected to be on cash dividends rather than buybacks. The report said repurchases could create regulatory complications tied to Samsung Life Insurance and Samsung Fire & Marine Insurance, both of which have ownership links to the parent company.
Some analysts had floated the idea that Samsung could return as much as 200 trillion won to investors. MoneyToday said that figure was considered unrealistic given the company’s ongoing investment commitments.
SK Hynix Sets the Bar
The Samsung report comes just one day after local rival SK Hynix announced a 40 trillion won ($29 billion) buyback and cancellation plan. SK Hynix said it would allocate more than 50% of free cash flow generated between 2025 and 2027 to shareholder returns.
That was already the largest shareholder return programme announced by any publicly listed South Korean company. Samsung’s reported plan would surpass it.
SK Hynix is the world’s second-largest memory chip maker. Samsung holds the top spot.
What the Plan Includes
The MoneyToday report said the Samsung plan includes special cash dividends as a key component. The board meeting is expected to take place in the final days of August.
Samsung had already signalled it would try to balance payouts with spending on future growth. The company is navigating an AI-driven chip demand cycle that has boosted profits across the memory sector.
The 50% free cash flow allocation mirrors the structure SK Hynix used for its own programme, announced the day before.
Samsung’s 005930 stock was trading up 9.49% on the Seoul exchange following the report.
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