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Samsung Shares Rise on $72 Billion Shareholder Return Plan

Samsung Shares Rise on $72 Billion Shareholder Return Plan. Source: Solomon203, CC BY-SA 4.0, via Wikimedia Commons

Samsung Electronics shares climbed on Friday following reports that the South Korean technology giant is preparing a shareholder return package potentially exceeding 100 trillion won ($72 billion).

Samsung’s board is expected to meet Friday to discuss the proposed capital return strategy, with an announcement potentially coming after the South Korean stock market closes. The plan could include a special dividend and other measures aimed at returning excess cash to investors.

According to media reports, Samsung may allocate roughly 50% of its free cash flow toward shareholder returns. MoneyToday first reported details of the potential package on Thursday, indicating that the strategy is likely to prioritize cash dividends rather than large-scale share buybacks.

Samsung Electronics shares gained about 3% to 279,000 won by 04:07 GMT on Friday, extending momentum after surging nearly 10% in the previous trading session. Investor optimism over the potential shareholder return program has added to positive sentiment surrounding South Korea’s semiconductor sector.

Rival chipmaker SK Hynix also advanced, rising 3.6% on Friday after jumping 12.7% a day earlier. SK Hynix recently announced a 40 trillion won share buyback and cancellation program, intensifying expectations that major South Korean technology companies will increase capital returns to shareholders.

Samsung’s financial position has also benefited from strong semiconductor demand. The company reported record second-quarter operating profit last month, supported by robust demand for memory chips used in artificial intelligence infrastructure and data centers.

Samsung has yet to officially confirm reports regarding the new 100 trillion won shareholder return package.

Under its existing capital allocation policy, Samsung plans to return 50% of free cash flow generated between 2024 and 2026 through regular dividends and additional shareholder returns when surplus cash is available.

A larger-than-expected dividend package could further strengthen investor confidence as Samsung benefits from growing AI-related memory demand and improving conditions across the global semiconductor industry.

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