Samsung Electronics expects shareholder returns up to $80 billion this year

SEOUL, - Samsung Electronics said on Friday that it expects its shareholder returns for this year could reach up to 110 trillion won ($79.54 billion), which includes 30 trillion won in cash dividends in the third quarter.

Samsung, which, like rival SK Hynix, has seen earnings soar as the AI ‌boom creates insatiable ⁠demand ⁠for chips, has been under much pressure to return gains to shareholders given their record-breaking profits.

The 110 trillion won would be over five times the size of the previous ​high in shareholder returns of 20.3 trillion won in 2020.


Samsung Electronics also bought back shares worth 15 trillion won for employee stock bonuses. Its board ​will decide remaining payouts in January 2027, with ⁠cash dividends, ‌share buybacks and share cancellations to be considered.

Under its ​2024 to ​2026 shareholder return policy, Samsung is committing 50% of free ⁠cash flow accumulated over the three-year period to shareholders.

SK ​Hynix said this week it will buy back and ​cancel 40 trillion won ($28.6 billion) of treasury shares and allocate more than 50% of its free cash flow generated between 2025 and 2027 to boost shareholder returns.

Earnings gains have been stupendous.

In the second quarter, Samsung reported a more than 250-fold jump in chip profit to 89 trillion won. ‌Its shares have surged 300% over the past 12 months but have come down from a record high in June ​amid concerns that ​AI spending could ⁠slow.

Samsung and SK Hynix are set to hold a combined $263 billion in net cash by the year's end. That is more than double the estimated $102 billion ​of AI bellwether Nvidia and exceeds the combined cash of the other six "Magnificent Seven" U.S. tech companies, LSEG data and Reuters calculations show.

On Friday, Samsung shares gained 3.5% while SK Hynix's stock climbed 4.4%. The wider market was up 0.8%.