Samsung Electronics Plans Record $80 Billion Shareholder Return For 2026
The South Korean tech giant's board approved a plan to hand shareholders as much as 110 trillion won, more than five times its previous record, after a huge profit jump tied to AI chip demand.
Samsung Electronics said Friday its board has approved a plan to return between 90 trillion won and 110 trillion won (roughly $65 billion to $80 billion) to shareholders this year, the largest shareholder payout ever made by a South Korean company, according to Yonhap and the Korea Herald.
The top of that range is more than five times the company's previous record of 20.3 trillion won, set in 2020, both outlets reported. Samsung disclosed the plan in a regulatory filing after the board meeting, Yonhap reported.
Dividends Now, More Decisions Later
Samsung said it plans to pay about 30 trillion won in cash dividends in the third quarter, with the exact amount to be set at a board meeting in late October, according to both Yonhap and the Korea Herald. The rest of the year's payout, which could include more cash dividends or share buybacks that are then canceled, will be decided at a January board meeting once full-year earnings are finalized, the Korea Herald reported.
This year's payout is the final installment of a three-year shareholder return policy running from 2024 through 2026, under which Samsung committed to returning half of its free cash flow to shareholders, according to Yonhap. The Korea Herald reported that Samsung paid 9.8 trillion won in regular dividends in each of 2024 and 2025, along with a 1.3 trillion won special dividend and 8.4 trillion won in stock buybacks last year. Counting this year's plan, the company's three-year total is expected to reach 120 trillion won to 140 trillion won, the Korea Herald reported.
A Samsung Electronics official said the return was meant to make sure “the benefits of the company's growth are shared with shareholders in a tangible way and at sustaining a virtuous cycle between corporate growth and enhanced shareholder value,” according to the Korea Herald.
Profits Surge on AI Chip Demand
The announcement follows a sharp jump in earnings. Samsung's second-quarter net profit rose nearly 1,300 percent from a year earlier to 90 trillion won, driven by strong demand for semiconductors used in artificial intelligence systems, Yonhap reported. Shares of Samsung Electronics rose 3.87 percent on South Korea's benchmark KOSPI index on the day of the announcement, according to Yonhap.
The move comes days after rival chipmaker SK hynix said it would buy back 24.07 million common shares worth 40 trillion won, part of a plan to return up to half of its free cash flow generated between 2025 and 2027 to shareholders, Yonhap reported.
Separately, Samsung's board approved a purchase of about 15 trillion won worth of treasury shares to fund special performance bonuses for employees, according to Yonhap and the Korea Herald. The Korea Herald reported that this employee compensation plan is separate from the shareholder return program, though Samsung said the purchases are also expected to help boost shareholder value.