Samsung Electronics is expected to discuss a major new shareholder return package at a board meeting on Friday, with South Korean media reporting that the plan could be worth more than 100 trillion won ($72 billion).
The package is expected to include special dividends, share buybacks and share cancellations, as Samsung faces growing pressure to return more of its record profits to investors.
The company has benefited heavily from the global AI boom, which has driven strong demand for memory chips and significantly increased earnings. In the second quarter, Samsung reported a dramatic surge in semiconductor profit, while its shares have risen sharply over the past year.
Rival SK Hynix has already announced a major shareholder return program, including plans to buy back and cancel 40 trillion won worth of treasury shares and allocate more than half of its free cash flow generated between 2025 and 2027 to shareholders.
Samsung’s existing policy commits 50% of three-year free cash flow to shareholder returns. With Samsung and SK Hynix expected to hold a combined $263 billion in net cash by year-end, investors are increasingly calling for larger payouts.
Samsung shares rose 3.5% on Friday ahead of the board meeting, while SK Hynix gained 4.4%.
