Samsung Electronics likely to announce 100 tln-won shareholder returns: sources

Samsung Electronics is reportedly on the verge of returning over 100 trillion won ($72.4 billion) to shareholders, according to industry sources. The South Korean tech giant follows in the footsteps of rival chipmaker SK hynix, which announced a similar shareholder-return plan earlier this week. The AI boom has driven record earnings for Samsung Electronics, with the company's second-quarter net profit soaring 1,300% to 90 trillion won ($64.6 billion) compared to the previous year.

Industry observers anticipate that Samsung Electronics will announce the largest-ever shareholder-return initiative at a board meeting, potentially marking the final year of its three-year policy for 2024-2026. The policy mandates that the company return 50% of its free cash flow to shareholders. Experts believe Samsung Electronics will distribute more than 100 trillion won via a special dividend, based on an estimated annual operating profit of 390 trillion won.

The company may also utilize share buybacks to fund special performance bonuses for employees. Samsung Electronics' shares surged nearly 3% on the KOSPI benchmark index as of 1 p.m., reflecting the market's high expectations for the expected move.