Samsung Electronics Stock Surges on Report of Massive $59 Billion Share Buyback Plan

Samsung Electronics shares rallied sharply on Wednesday after a report suggested the company could launch a substantial share buyback program worth nearly 90 trillion won ($59 billion) over the next three years. The potential move is aimed at supporting employee stock compensation plans and strengthening shareholder value.

The South Korean technology giant's stock price jumped as much as 10% during trading, reaching 341,000 won before easing slightly. Shares were last trading 6.6% higher at 330,500 won, significantly outperforming the broader market. The rebound came after Samsung shares had fallen more than 12% in the previous session amid a wider market sell-off.

According to a report from Yonhap News, Samsung Electronics may need to acquire approximately 290 million shares, representing around 5% of its outstanding common stock, to fulfill future stock-based compensation obligations. The company is reportedly considering additional treasury stock purchases after reaching an agreement with labor representatives to distribute part of special management performance bonuses in the form of company shares.

The report indicated that Samsung is expected to announce further details regarding the buyback plan in the near future. Yonhap estimates the company could require up to 90 trillion won in additional treasury stock purchases over the next three years, supplementing the roughly 25 trillion won in treasury shares it already holds.

Market analysts believe the initiative could have a positive impact on Samsung's stock performance. A significant portion of the awarded shares may be subject to lock-up restrictions, reducing the stock's free float and potentially supporting share prices over time.

Samsung Electronics has increasingly adopted stock-based compensation as part of its talent retention strategy. The company continues to compete aggressively for skilled workers while benefiting from strong demand in the artificial intelligence (AI) sector and the rapidly growing high-bandwidth memory (HBM) chip market. The proposed share buyback program highlights Samsung’s commitment to rewarding employees while enhancing long-term shareholder value amid the ongoing AI-driven technology boom.