Samsung Electronics poised for $72bn shareholder return program

Seoul's KOSPI index rose 5.89% to 6,852.58, driven by chip sector gains and eased U.S. bond yield concerns. SK hynix announced a $28.7B share buyback, and Samsung Electronics surged 9.49%. Foreign investors bought net 1.71T won. The Korean won fell against the U.S. dollar.

Samsung plans a $72B shareholder return program, allocating 50% of its free cash flow, including a special dividend. The company reported a record Q2 2026 operating profit of 89.5T won, driven by AI server demand in its Device Solutions division. SK Hynix also approved a share buyback and plans to increase shareholder returns for 2025-2027.

SK Hynix and Samsung Electronics led the Kospi's 5.9% surge after announcing significant shareholder returns. SK Hynix unveiled a 40 trillion won ($28.9 billion) buyback plan, jumping 12.7% in a day. Analysts estimate further returns of 181.5-211 trillion won. Samsung plans a 150 trillion won program. Both companies benefit from AI-driven cash generation.

SK Hynix and Samsung announced large shareholder return plans, with SK Hynix approving a $28.6B buyback and Samsung preparing a $72B return package. Micron, despite strong cash generation, has not followed suit, with minimal capital return. Micron's financials show significant cash reserves and flexibility, but structural differences and cyclical caution may delay any major shareholder returns.

Samsung plans to return 100 trillion won ($71.75 billion) to shareholders, pending board approval, signaling confidence in AI-driven memory demand. The payout includes a special dividend and follows record quarterly earnings of 171.5 trillion won in revenue and 89.5 trillion won in operating profit. SK Hynix announced a 40 trillion won buyback program, the largest in South Korea. TrendForce projects significant price increases for DRAM and NAND flash memory.

Samsung Electronics plans a 100 trillion won ($71.75B) shareholder return program, including a special dividend, according to MoneyToday. The move follows record profits driven by AI chip demand. Samsung aims to allocate 50% of free cash flow to returns. Competitor SK Hynix recently announced a 40 trillion won share buyback.