Samsung announces record shareholder return plan of up to 110 trillion won

Samsung Electronics has unveiled plans to return between 90 trillion and 110 trillion Korean won (approximately $65 billion to $80 billion USD) to shareholders this year, marking the largest shareholder return program in South Korean corporate history. The tech giant's board of directors approved the plan on Friday, which includes an initial cash dividend distribution of about 30 trillion won.

The company intends to distribute the regular third-quarter dividend as part of this payout. The remaining funds will be returned to shareholders through methods and in amounts to be finalized in January. This significant shareholder return is designed to ensure that the company's growth benefits are shared tangibly with its investors, fostering a positive cycle between corporate growth and shareholder value enhancement, according to a Samsung Electronics executive.

This program is a key component of Samsung's current three-year shareholder return policy, spanning from 2024 to 2026. This policy mandates that 50% of the company's free cash flow be returned to shareholders. In 2024 and 2025, Samsung distributed a total of 19.6 trillion won in regular dividends. Last year, the company also issued a special dividend of 1.3 trillion won and repurchased and retired 8.4 trillion won worth of stock.

In addition to the shareholder returns, Samsung's board also approved the purchase of treasury stocks valued at approximately 15 trillion won, intended for employee compensation. While separate from the shareholder return plan, Samsung stated that the treasury stock program is also expected to contribute to enhancing shareholder value. Including the planned returns for this year, Samsung anticipates returning a total of 120 trillion to 140 trillion won to shareholders over the three-year period.