Samsung plans up to $79B shareholder return

Samsung Electronics shares experienced a boost on Friday, following reports that the South Korean tech giant was on the verge of unveiling a shareholder return plan worth over $72 billion. The company's board is scheduled to meet on Friday to deliberate on the plan, which is anticipated to take place after the market closes. According to reports, the package could surpass 100 trillion won and encompass a special dividend, with Samsung intending to utilize around 50% of its free cash flow for shareholder returns.

Earlier on Thursday, MoneyToday had initially reported the news, suggesting that the shareholder return would primarily consist of cash dividends rather than share buybacks. Samsung's shares, listed in Seoul, surged by 3% to 2,790,000 won by 04:07 GMT, having climbed nearly 10% in the previous session. SK Hynix Inc, a rival listed on the same exchange, also witnessed a 3.6% increase on Friday, following a surge of 12.7% in the prior session. The company announced a share buyback and cancellation program amounting to 40 trillion won.

In Q2, Samsung Electronics reported record operating profits due to robust demand for memory chips utilized in AI infrastructure, which significantly contributed to the company's earnings. However, Samsung has refrained from officially commenting on the recent reports concerning the new shareholder return program. Samsung's established policy entails returning 50% of the free cash flow generated between 2024 and 2026 through regular dividends and supplementary capital returns whenever surplus cash is available.