Samsung plans up to $80 billion in shareholder returns after SK Hynix buyback

Industry sources indicate that Samsung Electronics is set to return a significant amount of money to its shareholders, potentially reaching 100 trillion won, or $72.4 billion. This announcement follows a similar move by competitor SK hynix, which coincides with record earnings fueled by the artificial intelligence (AI) boom. The world's largest memory chip manufacturer is expected to disclose this potentially record-breaking shareholder-return initiative during a board meeting, possibly as early as later Friday or next week.

The proposed return of shareholder value would conclude Samsung's three-year shareholder-return policy for 2024-26, which aims to distribute 50% of its free cash flow to shareholders. Based on an estimated annual operating profit of 390 trillion won, industry observers predict that the company will return more than 100 trillion won through a special dividend.

Additionally, Samsung may utilize this opportunity to buy back its own shares, potentially funding special performance bonuses for employees. The company's second-quarter net profit soared nearly 1,300% to 90 trillion won, a remarkable increase from a year earlier, driven by robust demand for semiconductors linked to AI advancements.