--- title: "Samsung Announces Largest Shareholder Return Plan in South Korean History, Aiming to Return Up to $79 Billion This Year, Equivalent to 50% of Free Cash Flow" type: "News" locale: "en" url: "https://longbridge.com/en/news/296596061.md" description: "Samsung Electronics announced it will return up to 110 trillion South Korean won (approximately $79 billion) to shareholders in 2026, accounting for about 50% of its free cash flow, setting a new record for the highest shareholder returns in South Korean corporate history. The company plans to distribute 30 trillion won in quarterly dividends and repurchase 15 trillion won worth of shares. Driven by AI demand and competition from peer SK Hynix, this move has raised market expectations for high dividends and provided valuation support for the stock price" datetime: "2026-08-21T08:14:55.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296596061.md) - [en](https://longbridge.com/en/news/296596061.md) - [zh-HK](https://longbridge.com/zh-HK/news/296596061.md) generator: "portal-rs" --- # Samsung Announces Largest Shareholder Return Plan in South Korean History, Aiming to Return Up to $79 Billion This Year, Equivalent to 50% of Free Cash Flow Samsung Electronics announced its largest-ever shareholder return plan, **expecting to return up to 110 trillion South Korean won (approximately $79 billion) to shareholders in 2026**, equivalent to about 50% of its free cash flow. This move will set a new record for the highest shareholder returns in South Korean corporate history. According to documents submitted by Samsung Electronics to regulators, **the company will distribute approximately 30 trillion won in cash dividends for the third quarter and repurchase about 15 trillion won worth of shares for employee compensation plans.** Bloomberg News had previously reported that Samsung was evaluating shareholder return schemes ranging between 90 trillion and 110 trillion won. Before the announcement, Samsung's stock price narrowed its losses and closed up 3.9%; the South Korean won led gains against the US dollar among Asian currencies, as market expectations for the scale of the plan formed support in advance. Tom Kang, Research Director at Counterpoint, stated that this move is "expected to drive broader structural changes in the South Korean stock market" and represents a "solid step" by the company's management towards a greater focus on shareholder interests, "closer to common practices in the US market." ## Competitive Pressure and AI Windfall Drive Accelerated Returns The direct background for Samsung's return plan is the preemptive move by competitor SK Hynix, which is also a memory chip supplier for Nvidia. SK Hynix previously announced a 40 trillion won repurchase plan, significantly heating up market expectations for Samsung to release more cash, while investors also pointed out the continuous accumulation of reserve funds within Samsung. The boom in AI infrastructure construction has driven a surge in demand for memory chips. As key suppliers in this wave, Samsung and SK Hynix are returning part of their excess profits to investors. Samsung's stock price strengthened overall this week, partly reflecting market expectations for a large-scale shareholder return plan. ## Preferred Stock Rally Reflects Market Expectations for High Dividends The market's reaction to this plan is also reflected in the performance of preferred stocks. **Albert Yong, Managing Partner and Chief Investment Officer at Petra Capital Management, pointed out that preferred stocks were previously at a "significant discount," and the recent rise in preferred stocks may reflect market expectations for strengthened shareholder returns and increased dividends on preferred shares.** Albert Yong also stated, "The real question is how large the incremental scale will be, and what proportion will be allocated to repurchases versus dividends." Currently, Samsung has not disclosed the specific structural details of the return plan, and the ratio between dividends and repurchases remains to be clarified. ## Stock Price Buffer Amid Macroeconomic Uncertainty Although the details of the plan remain to be clarified, market participants have formed a relatively consistent judgment on its positive significance. Jung In Yun, CEO of Fibonacci Asset Management Global, stated that Samsung's move provides a "meaningful buffer" for the stock price, offering valuation support in an environment of continued macroeconomic uncertainty. If the scale of shareholder returns announced by Samsung ultimately reaches the upper limit of 110 trillion won, it will refresh the historical record for shareholder returns by South Korean companies, further testing whether South Korean listed companies can continue to expand the proportion of cash distributions to investors amidst the excess profits brought by the AI cycle. ### Related Stocks - [SSNGY.US](https://longbridge.com/en/quote/SSNGY.US.md) - [09347.HK](https://longbridge.com/en/quote/09347.HK.md) - [07347.HK](https://longbridge.com/en/quote/07347.HK.md) - [07747.HK](https://longbridge.com/en/quote/07747.HK.md) - [09747.HK](https://longbridge.com/en/quote/09747.HK.md) - [SMSN.UK](https://longbridge.com/en/quote/SMSN.UK.md) - [SKHY.US](https://longbridge.com/en/quote/SKHY.US.md) - [EWY.US](https://longbridge.com/en/quote/EWY.US.md) - [07709.HK](https://longbridge.com/en/quote/07709.HK.md) - [03121.HK](https://longbridge.com/en/quote/03121.HK.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [When it comes to returning cash to shareholders, anything SK Hynix can do, Samsung can do bigger](https://longbridge.com/en/news/296617028.md) - [Samsung Elec sees up to $79.5 bln available for 2026 shareholder returns](https://longbridge.com/en/news/296587434.md) - [Samsung unveils plan to return up to US$79 billion to shareholders](https://longbridge.com/en/news/296615008.md) - [REG - Samsung Electronics Samsung Elec - SMSD - Matters related to public disclosure obligation](https://longbridge.com/en/news/296589969.md) - [Samsung Elec to convene board meeting Friday to discuss shareholder return plan, says source](https://longbridge.com/en/news/296559540.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**