Samsung plans multi‑billion payout to shareholders
Following a similar move by SK Hynix, Samsung has unveiled a large-scale shareholder return initiative, rounding off an important week for South Korea’s semiconductor industry. The tech giant estimates that by the end of 2026 it will allocate between €55.6 billion €67.9 billion for these payouts. According to the company, this would be the largest amount ever set aside for this purpose by a Korean firm.
As part of its immediate strategy, Samsung plans to distribute around €18.5 billion in cash dividends in the third quarter, including the usual quarterly payments. The board of directors is expected to set out the specific arrangements for this payout at a meeting to be held before the end of October.
This financial strategy is part of a broader programme for the 2024-2026 period. Samsung has committed to returning half of its free cash flow over three years and to maintaining annual profit sharing at €6 billion. Under a value-enhancement strategy announced in March, the company has already paid out €12.9 billion in dividends in 2024 and 2025, in addition to €5.2 billion earmarked for the repurchase and cancellation of shares.
The timing of this announcement coincides with Samsung’s efforts to close the gap with SK Hynix in the fiercely contested market for AI-driven high-bandwidth memory. This offensive has helped Samsung’s share price climb by around 135% this year. It follows SK Hynix’s recent disclosure of a €24.7 billion share buyback plan. As for the remaining balance of the return package, Samsung will determine the specific allocation between share cancellations and cash distributions at a board meeting at the end of January 2027.
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