Samsung Electronics plans 100 trillion won return, SK also buys back stock

2026-08-20

Samsung Electronics plans 100 trillion won return

South Korean chip giant Samsung Electronics is expected to announce a shareholder return plan worth a total of 100 trillion won, or about 11 trillion yen. It will make the formal announcement after a board meeting on the 21st. A return plan of 100 trillion won in total would be the largest ever by a South Korean company.

Profits grow on AI demand

Samsung is the world’s largest maker of memory chips. Demand has risen on the back of growing investment in data centers for artificial intelligence, and its earnings have continued to hit record highs.

Calls have been growing in the market for stronger shareholder returns. While the bonus for each employee in 2026 is expected to reach as much as about 60 million yen through stock compensation, the company has not carried out any large share buybacks or dividend increases.

Although the stock price had fallen on concerns over AI investment, the move appears aimed at helping drive shares higher through massive returns.

SK follows with 40 trillion won buyback

Peer SK Hynix also said on the 19th that it will carry out a share buyback of about 40 trillion won. It had viewed the fact that its cash-generating power and other strengths were not sufficiently reflected in its share price as a problem. The semiconductor industry is seeing a broader move to channel cash accumulated from AI demand into shareholder returns.

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