Samsung Electronics is set to implement a record shareholder return plan exceeding 100 trillion won. This strategy aims to expand both large-scale investments and shareholder returns amid a booming semiconductor market.
According to industry sources, Samsung will hold a board meeting at the end of this month to finalize its shareholder return plan, which is expected to include special dividends. The total return amount is anticipated to surpass 100 trillion won.
The funding is likely to come from 50% of the company's free cash flow (FCF). While some analysts have speculated about a potential return of up to 200 trillion won, concerns about the burden of large facility investments suggest this may be unrealistic.
In the first half of this year alone, Samsung invested over 55 trillion won in research and development and facility investments. Unlike operating profit, FCF accounts for actual cash spent on investments, which could directly impact the funds available for shareholder returns in the future.
The specific method of return is expected to focus heavily on cash dividends. Unlike SK Hynix, Samsung may find that a dividend approach is more favorable from a governance perspective than stock buybacks.
Industry experts believe that if performance improves next year, the scale of FCF-linked shareholder returns will naturally increase. How Samsung balances the expansion of shareholder returns with future growth investments will be a key variable in its capital allocation strategy.
* This article has been translated by AI.
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