Samsung to buy back up to $80 bn in shares to boost shareholder returns

Samsung Electronics has announced plans to buy back up to $80 billion in shares to increase returns for shareholders, the largest such initiative in the country. The company follows in the footsteps of rival SK hynix, which announced a $28.9 billion share buyback just days earlier. Samsung's board approved the shareholder return plan for 2026, with estimates suggesting it could range from approximately 90 trillion to 110 trillion won.

The company aims to ensure that the fruits of its growth translate into tangible benefits for shareholders through this plan. Samsung first intends to distribute a cash dividend totaling around 30 trillion won in the third quarter, with further details to be finalized during a board meeting in late October. Samsung's shares have surged since June when they hit a record high of 370,000 won on optimism surrounding the artificial intelligence boom.

However, they have since declined amid investor concerns and a broader tech market downturn. Samsung's shares closed up 3.9 percent on Friday, anticipating the significant shareholder return announcement. In the company's semi-annual report, minority shareholders accounted for approximately 8 million, representing nearly one-fifth of South Korea's adult population.

Last month, Samsung reported a staggering operating profit increase of over 1,800 percent in the second quarter, driven by strong demand for its advanced chips in the artificial intelligence sector. These developments have helped propel the Republic of Korea's benchmark Kospi index to a record high of over 9,000 points in mid-June before a tech market correction dragged it sharply lower.