Samsung to buy back up to $80 bn in shares to boost shareholder returns

Samsung Electronics plans to return up to 110 trillion won ($79 billion) to shareholders, balancing investor returns with AI investments. The move highlights the company's strategic priorities amid industry competition.

Samsung Electronics plans to buy back up to $80 billion in shares, the largest such plan in South Korea, to boost shareholder returns. The move follows a similar announcement by rival SK hynix. Samsung's shares rose 3.9% on the news, and the company also plans a cash dividend of around 30 trillion won in Q3. The announcement comes amid a broader tech sector downturn.

Samsung Electronics' board approved a $65-80B shareholder return program for 2026, including a $11B buyback. It plans $21.6B in cash dividends in Q3, with more details in 2027. The company aims to return 50% of its free cash flow to shareholders.

Samsung Electronics plans to return up to 110 trillion won ($80 billion) to investors in 2024, including cash dividends and stock buybacks. The program is the largest in South Korea's history. Shares initially fell 2.6% post-announcement. SK Hynix's buyback plan added pressure on Samsung to increase returns.

Samsung Electronics plans to announce a record shareholder return package worth up to $79 billion, driven by strong AI chip demand. The package, to be disclosed after the board meeting, may include a special dividend and share buyback, funded by 50% of free cash flow. Samsung's Q2 net profit surged 1,300% YoY to $90 billion, with shares rising 3% ahead of the announcement.

KOSPI rose 0.88% to 6,912.95, driven by chipmakers SK hynix (+2.31%) and Samsung Electronics (+3.87%) amid shareholder return expectations. SK hynix announced a 40 trillion won buyback. Institutional investors bought net 248.7 billion won, while foreign and retail investors sold. Rising U.S. Treasury yields posed pressure. Kosdaq fell 4.63%. Won strengthened to 1,386.5 per dollar.