TLDR
- Samsung stock rose up to 3.9% on Friday ahead of a board meeting to approve a major shareholder return package
- The plan is reported to be worth over 100 trillion won ($72 billion), primarily through special cash dividends
- The package would allocate 50% of Samsung’s free cash flow to shareholders
- Rival SK Hynix announced a 40 trillion won ($28.6 billion) buyback earlier this week, adding pressure on Samsung to act
- KB Securities said Samsung could reach the 300,000 won price level on the back of earnings growth and the expected special dividend
Samsung Electronics stock climbed as much as 3.9% to ₩279,500 on Friday, as investors positioned ahead of a board meeting expected to formally approve one of the largest shareholder return packages in South Korean corporate history.
Samsung Electronics Co., Ltd., SMSD.L
Reports from multiple outlets put the plan’s value at over 100 trillion won, or roughly $72 billion. The package is structured mainly around special cash dividends, with 50% of the company’s free cash flow earmarked for shareholders.
A person familiar with the matter confirmed to Reuters that a board meeting was scheduled Friday afternoon to discuss the return package, though they declined to give specifics. A company spokesperson declined to comment.
Pressure to Return Profits
Samsung and SK Hynix have been under growing pressure to return record profits to investors. The AI-driven chip boom has sent earnings at both companies to historic levels.
In Q2 2026, Samsung reported a more than 250-fold jump in chip profit to 89 trillion won. Its stock has surged 300% over the past 12 months, though it has pulled back from a June record high on concerns about a potential slowdown in AI spending.
SK Hynix moved first. Earlier this week it announced a 40 trillion won buyback and cancellation of treasury stock, while pledging to direct more than 50% of free cash flow to shareholders through 2027. That raised expectations Samsung would follow suit with something larger.
Together, Samsung and SK Hynix are projected to hold a combined $263 billion in net cash by year-end. That figure tops the combined cash of all six other Magnificent Seven U.S. tech companies, according to LSEG data.
What Analysts Are Saying
KB Securities published a note Friday saying Samsung could quickly trade into the ₩300,000 range. The firm pointed to earnings growth driven by a prolonged memory chip shortage and the prospect of a special dividend exceeding 100 trillion won as key catalysts.
Samsung’s stock gains helped lift the wider KOSPI index by 0.7% on Friday. SK Hynix also added around 4.4% on the day.
Under its existing 2024 to 2026 capital return policy, Samsung already commits 50% of three-year free cash flow to shareholders. The new plan, if confirmed, would go well beyond that commitment.
Samsung closed Friday up 3.5%, with SK Hynix finishing 4.4% higher.
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