▲ Samsung Electronics
Samsung Electronics has decided to implement shareholder returns of up to KRW 110 trillion this year, marking the largest scale in the history of South Korean companies.
This is more than five times the previous annual maximum scale, and specific plans will be finalized starting with a regular dividend of approximately KRW 30 trillion in the third quarter.
Samsung Electronics announced that it held a board of directors meeting today (August 21) and approved the implementation plan for 2026 shareholder returns, estimated to be between approximately KRW 90 trillion and KRW 110 trillion.
This is about five times the previous record scale of KRW 20.3 trillion in 2020.
Samsung explained that this shareholder return is intended to ensure that the achievements resulting from the company's growth translate into tangible benefits for shareholders, thereby maintaining a virtuous cycle where company growth and shareholder value enhancement reinforce each other.
It is also the execution of the three-year shareholder return policy for 2024–2026, which utilizes 50 percent of Free Cash Flow (FCF) for shareholder returns.
Samsung Electronics executed regular dividends totaling KRW 19.6 trillion, at KRW 9.8 trillion each year for 2024 and 2025, and in 2025 carried out a special dividend of KRW 1.3 trillion and the purchase and cancellation of treasury shares amounting to KRW 8.4 trillion.
Combined, the scale of shareholder returns over the past two years reaches KRW 29.3 trillion.
Including the 2026 shareholder returns on top of this, the total scale of shareholder returns for the three-year period from 2024 to 2026 is projected to be KRW 120 trillion to KRW 140 trillion.
Samsung Electronics plans to first implement cash dividends of approximately KRW 30 trillion, including the regular quarterly dividend for the third quarter of this year.
Specific details are scheduled to be finalized at the board meeting at the end of October.
For the remaining shareholder returns, the company plans to determine the return method and scale—including cash dividends and the purchase and cancellation of treasury shares—at the board meeting next January when the 2026 business performance is finalized.
Meanwhile, Samsung Electronics also approved the purchase of treasury shares worth approximately KRW 15 trillion for employee compensation at the board meeting today.
Projections suggest this will also lead to additional effects of enhancing shareholder value.
An official from Samsung Electronics stated, "We plan to faithfully implement our shareholder return policy moving forward while actively communicating our shareholder return plans with shareholders and the market."
※ Please note: This article was translated by AI and may contain errors.
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