Samsung Electronics announced the largest shareholder return plan ever by a South Korean company.
The company will return 50% of its free cash flow (FCF) to shareholders, driven by a supercycle in AI semiconductor demand. The projected shareholder return stands at 90 trillion to 110 trillion won ($79 billion).
Samsung Electronics held a board meeting Friday and approved its shareholder return plan for this year.
The company had previously announced a three-year shareholder return policy covering 2024 through this year, pledging to return 50% of FCF to shareholders. The board vote confirmed it will honor that commitment in full.
Samsung Electronics projects this year's total return at roughly 90 trillion to 110 trillion won. The financial investment industry estimates the company's operating profit this year will reach the high 300 trillion won range. The company said it will share the gains from surging AI semiconductor demand with shareholders, sustaining a virtuous cycle between corporate growth and shareholder value.
This year's projected return is roughly five times the previous record of 20.3 trillion won set in 2020.
Over 2024 and 2025, Samsung Electronics paid regular dividends of 9.8 trillion won per year, totaling 19.6 trillion won over the two years. In 2025, it also paid a special dividend of 1.3 trillion won and carried out a share buyback and cancellation worth 8.4 trillion won.
Including this year's return, the total shareholder return for the three years from 2024 through 2026 is expected to reach 120 trillion to 140 trillion won.
The company plans to begin cash dividends of about 30 trillion won — including regular dividends — starting in the third quarter. Specific details will be finalized at the board meeting at the end of October.
The remaining shareholder return will be decided at the January board meeting next year, once this year's financial results are confirmed. At that point, the company will determine the method and scale of the return, which may include cash dividends and share buyback and cancellation.
Meanwhile, Samsung Electronics also approved at Friday's board meeting a buyback of approximately 15 trillion won worth of shares for employee compensation.
The employee compensation buyback is also expected to boost shareholder value by reducing the total share count. Samsung Electronics said it will continue to faithfully implement its shareholder return policy and actively communicate its plans to the market.
jeongwan@heraldcorp.com
