SEOUL, June 24 (AJP) - Samsung Electronics reclaimed the top spot on South Korea's benchmark KOSPI on Wednesday, ending a two-day reign by rival SK hynix, after unveiling a massive 90 trillion won ($65 billion) stock buyback program over the next three years to support a new employee compensation scheme tied to its AI-driven earnings boom.
As of 1:40 p.m., Samsung shares were up 6.5 percent at 330,250 won, outperforming the KOSPI's 1.4 percent gain, while SK hynix fell 1.5 percent.
Samsung Electronics recently reached an agreement with its labor union to distribute 10.5 percent of the semiconductor division's operating profit as special management performance bonuses, paid in company stock.
Based on local brokerage forecasts for a cumulative 1,471 trillion won in operating profit over the next three years, the gross payout could reach roughly 155 trillion won. After a standard 40 percent tax withholding, employees would receive stock worth about 93 trillion won ($67 billion).
Samsung currently holds 82.09 million treasury shares valued at around 25 trillion won based on recent closing prices, leaving a substantial shortfall to fund both the new bonus scheme and its Performance Share Unit, or PSU, program introduced last October.
The PSU program, which promises between 200 and 300 shares to all 128,000 employees depending on performance targets by October 2028, is estimated to require another 22 trillion won.
Since the program was introduced, Samsung's stock price has surged roughly 3.5 times, from around 80,000–90,000 won to more than 310,000 won, significantly inflating the eventual payout obligation.
Analysts estimate Samsung will need to purchase an additional 290 million shares from the open market over the next three years, equivalent to nearly 5 percent of its total outstanding common shares.
The buying spree would dwarf Samsung's historical shareholder-return efforts, tripling the 30.7 trillion won worth of treasury stock it repurchased over the past decade.
"The 90 trillion won figure is accurate, and a large-scale additional buyback is indeed required under the current circumstances," a company official said. "However, the exact execution strategy and methods for the buyback have not yet been finalized."
Market analysts expect the program to provide a significant boost to Samsung's share price.
Under the compensation structure, one-third of the stock bonuses can be sold immediately, while the remaining two-thirds will be subject to lock-up periods of one to two years.
Analysts say the combination of sustained corporate buying demand and a temporary reduction in freely tradable shares could create a powerful stabilizing effect for Samsung's stock despite the enormous scale of the employee payout.
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