Why is Samsung Electronics stock plunging today?

Samsung Electronics' stock fell 8.7% on Monday following investors' negative reaction to the company's shareholder return plan announced on August 21. The plan promised between 90 trillion and 110 trillion won, or $65 billion to $79 billion, to shareholders in 2026, which analysts said was roughly five times the previous record set in 2020.

However, Samsung did not mention the possibility of raising its existing shareholder return policy or canceling treasury shares, a decision that negatively impacted investor sentiment. In contrast, rival SK Hynix announced it would buy back and cancel 40 trillion won of treasury shares and allocate more than 50% of its free cash flow generated between 2025 and 2027 to boost shareholder returns, causing Samsung's stock to drag the KOSPI down by more than 1%.

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