Samsung Electronics shares crashed roughly 9% in Seoul after the company unveiled a massive 90 trillion to 110 trillion won shareholder-return plan, worth approximately $65 billion to $80 billion. Samsung plans to pay a 30 trillion-won third-quarter dividend, with its board deciding the remaining distributions in January. Investors wanted a clear commitment to buybacks and permanent share cancellations, but Samsung stuck with its existing promise to return 50% of cumulative 2024-2026 free cash flow. SK Hynix set a tougher benchmark by committing to repurchase and cancel 40 trillion won of shares while returning more than half of its 2025-2027 free cash flow. Regulatory ownership limits could restrict buybacks by affiliated insurers, making dividends the easier route.
Samsung Electronics Co LtdSamsung's shareholder-return plan disappointed investors, leading to a 9% stock crash.
SK Hynix IncSK Hynix's stronger buyback commitment sets a benchmark, potentially pressuring Samsung but not directly affecting SK Hynix's own valuation.
