SEOUL, August 21 (AJP) - Samsung Electronics expects to return as much as 110 trillion won ($79.5 billion) to shareholders this year, setting up the largest shareholder return in the company's history as strong cash generation boosts funds available for dividends and share buybacks.
The South Korean technology giant said Friday its board approved a plan for total shareholder returns of between 90 trillion won and 110 trillion won in 2026, roughly five times its previous annual record of 20.3 trillion won in 2020.
The plan marks the final year of Samsung's three-year shareholder return policy launched in 2024, under which the company pledged to return 50 percent of its free cash flow, or FCF, to shareholders.
Samsung plans to distribute about 30 trillion won in cash dividends in the third quarter, including its regular dividend. Details will be finalized at a board meeting scheduled for late October.
The remaining shareholder returns will be determined after Samsung's full-year 2026 results are finalized. The board is expected to decide in January next year on the size and mix of additional cash dividends and share buybacks and cancellations.
The scale represents a sharp increase from recent years. Samsung paid 9.8 trillion won in regular dividends in each of 2024 and 2025, for a combined 19.6 trillion won.
In 2025, the company also paid a special dividend of 1.3 trillion won and carried out 8.4 trillion won worth of share buybacks and cancellations.
Including this year's planned returns, Samsung expects its cumulative shareholder returns for the 2024 to 2026 period to reach between 120 trillion won and 140 trillion won.
The company said the record payout is aimed at ensuring that gains from its growth are returned to shareholders while creating a cycle in which corporate growth translates into higher shareholder value.
Separately, Samsung's board approved the purchase of about 15 trillion won worth of treasury shares to compensate employees. The company said the employee compensation program is also expected to contribute to shareholder value.
Samsung said it will continue to implement its shareholder return policy while communicating its plans with shareholders and the market.
Shares of Samsung Electronics closed up 9.5 percent at 271,000 won on Friday.
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