According to reports from South Korean media, Samsung Electronics is planning to introduce a shareholder reward program exceeding 100 trillion Korean won (approximately $71.75 billion USD), with a board meeting scheduled to be held at the end of this month to discuss specific arrangements including special cash dividends.
The South Korean media outlet, MoneyToday (머니투데이), exclusively reported on August 20th, citing industry insiders, that Samsung plans to allocate 50% of its free cash flow to a new shareholder reward program.
The report mentioned that Samsung has seen substantial profit growth thanks to the increase in demand for storage chips driven by AI technology.
Samsung Electronics has not yet commented on the related reports, and the final scale and specific details of the shareholder rewards are still pending confirmation by the board of directors.
It is worth noting that SK Hynix, the world’s second-largest storage chip manufacturer after Samsung, is also increasing its efforts in shareholder rewards.
On August 19th, the company announced a 40 trillion Korean won stock repurchase and cancellation plan, setting a record for the largest stock buyback and cancellation program in the history of South Korean listed companies. SK Hynix also stated that between 2025 and 2027, over 50% of the cumulative free cash flow will be used for shareholder rewards.