Samsung Electronics Announces Record 110 Trillion Won Shareholder Return Plan

SEOUL, Aug. 21 (Yonhap) -- Samsung Electronics Co. said Friday it expects funds of up to 110 trillion won (US$80 billion) to be used for shareholder returns this year, in what would be the biggest investor returns by a South Korean company.

Following a board meeting earlier in the day, the company said in a regulatory filing that about 90 trillion won to 110 trillion won will be available for shareholder returns in 2026.

In the third quarter, it plans to pay cash dividends of around 30 trillion won, with details expected to be finalized at a board meeting in late October, the company added.

The scope and means for the remaining shareholders return will be confirmed at a board meeting in January, when the company's annual earnings are finalized.

The total amount is the company's largest-ever shareholder-return initiative to date and is about five times bigger than the previous record of 20.3 trillion-won return in 2020.

The announcement comes in the final year of Samsung Electronics' three-year shareholder-return policy for 2024-26, which calls for returning 50 percent of its free cash flow to shareholders.

Samsung Electronics' second-quarter net profit jumped nearly 1,300 percent to 90 trillion won from a year earlier, on the back of strong demand for semiconductors linked to artificial intelligence (AI).

With expectations running high, shares of Samsung Electronics rose 3.87 percent on the benchmark Korea Composite Stock Price Index (KOSPI) on Friday.

The decision also comes following a similar announcement by its chipmaking rival SK hynix Inc. amid record earnings driven by the AI boom.

Earlier this week, SK hynix said it will buy back 24.07 million common shares worth 40 trillion won as part of its plan to return up to 50 percent of its cumulative free cash flow generated over the three-year period from 2025 to 2027 to shareholders.

Meanwhile, Samsung Electronics said it has also decided to buy back some 15 trillion won worth of its own shares to fund special performance bonuses for employees during Friday's board meeting.