Samsung Electronics to Announce $71.75 Billion Shareholder Return
Samsung Electronics is set to announce a new shareholder return policy worth more than 100 trillion won ($71.75 billion), according to media reports. The South Korean memory-chip maker will hold a board meeting at the end of August to approve the plan, which includes a special dividend.
The company will spend 50% of its free cash flow on the new programme, as reported by MoneyToday. This move comes as Samsung plans to share record profits with shareholders amid an AI-driven chip supercycle.
Local rival SK Hynix has already unveiled a 40 trillion won share buyback and cancellation plan, the largest shareholder return programme announced by a publicly listed South Korean company. SK Hynix also plans to allocate more than 50% of free cash flow generated between 2025 and 2027 to shareholder returns.
Record Profits and Shareholder Returns
Samsung's record profits are expected to be driven by the AI-driven chip supercycle. The company's decision to share its profits with shareholders through a shareholder return programme reflects its confidence in the company's future prospects.
Comparison with SK Hynix
SK Hynix's 40 trillion won share buyback and cancellation plan is the largest shareholder return programme announced by a publicly listed South Korean company. The company's plan to allocate more than 50% of free cash flow generated between 2025 and 2027 to shareholder returns also sets it apart from Samsung.
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