Samsung Electronics' stock price dropped more than 8% on August 24, despite announcing a record 110 trillion won ($82 billion) shareholder return plan on August 21. Investor reactions have been lukewarm.
This decline contrasts sharply with SK Hynix, whose shares surged over 12% following its announcement of a 40 trillion won stock buyback and cancellation plan. Market analysts suggest that Samsung's shareholder return fell short of expectations.
One significant factor contributing to the stock's poor performance is the Financial Industry Structure Improvement Act, which restricts the company from announcing a stock cancellation plan. If Samsung were to buy back additional common shares, its stake in Samsung Life Insurance and Samsung Fire & Marine Insurance could exceed the 10% limit set by the law, potentially limiting its ability to repurchase common shares.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.