Samsung Electronics announces record shareholder returns of up to 110 trillion won

Samsung Electronics has unveiled a record-breaking shareholder return plan, potentially reaching up to 110 trillion won (approximately $79 billion USD) for the current year. This figure significantly surpasses the previous record of 20.3 trillion won set in 2020, marking the largest shareholder return initiative ever undertaken by a South Korean corporation.

The company's board of directors approved the plan on August 21st. The proposed shareholder returns include an estimated 30 trillion won in cash dividends for the third quarter. The final decisions on the exact dividend amount, share buybacks, and share cancellations will be made by the board in January, following the finalization of the company's annual financial performance. This move is part of Samsung's three-year policy (2024-2026) to allocate 50% of its free cash flow towards shareholder returns.

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The largest shareholder return in history is intended to ensure that the results of the company's growth provide tangible benefits to shareholders, thereby creating a virtuous cycle of company growth and shareholder value enhancement.

Beyond direct shareholder distributions, Samsung Electronics also committed to a 15 trillion won share buyback program intended for employee compensation, including performance incentives and special bonuses. The company stated that this buyback is expected to enhance shareholder value. Furthermore, Samsung will contribute 78.9 billion won to an incentive fund aimed at improving safety and productivity among its semiconductor division's partner companies, particularly small and medium-sized enterprises. This initiative underscores Samsung's commitment to its broader business ecosystem.

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The share buyback for employee compensation is also expected to enhance shareholder value. Moving forward, we will faithfully implement our shareholder return policy and actively communicate our plans with shareholders and the market.