Samsung Electronics expects to carry out shareholder returns worth about 90 trillion to 110 trillion won this year, the largest ever among shareholder returns by domestic corporations. In the third quarter, it will pay about 30 trillion won in cash, including regular dividends, and decide the remaining size and method after this year's results are finalized in Jan. next year.
Separately, Samsung Electronics will buy back 15 trillion won in treasury shares on the open market for employee stock compensation. It also decided to contribute 78.9 billion won to an incentive fund for partners of the Device Solutions (DS) institutional sector, which handles the semiconductor business, to prevent safety accidents and improve productivity.
On the 21st, Samsung Electronics held a board meeting and approved the shareholder return plan, the purchase of treasury shares, and the contribution to the DS institutional sector partners' incentive fund.
◇ Return of 90 trillion to 110 trillion won this year alone… About five times the 2020 record
Samsung Electronics' estimated remaining resources for shareholder returns this year total about 90 trillion to 110 trillion won. This is the amount obtained by subtracting the 2.93 trillion won in shareholder returns already carried out in 2024–2025 from 50% of the total free cash flow (FCF) generated over 2024–2026. The actual amount returned may vary depending on this year's business performance and investment scale.
The expected size of Samsung Electronics' shareholder returns this year is the largest ever among domestic corporations. Compared with its previous record of 2.03 trillion won in 2020, it is about five times larger. Samsung Electronics said the goal is "to ensure that performance driven by the company's growth translates into tangible benefits for shareholders, and to continue a virtuous cycle that enhances the company's growth and shareholder value."
This return follows the three-year shareholder return policy that Samsung Electronics has applied from 2024 through this year. Samsung Electronics will return 50% of the total FCF generated over the three years to shareholders and pay regular dividends of 980 billion won each year. If residual resources remain after regular dividends within 50% of the three-year FCF, they will be additionally returned.
Samsung Electronics returned a total of 2.93 trillion won over 2024–2025. Cash dividends were 2.09 trillion won, and share buybacks and cancellations were 840 billion won. Of the cash dividends, 1.96 trillion won—980 billion won each year—were regular dividends, and last year it also paid a special dividend of 130 billion won. Adding the expected shareholder returns this year, Samsung Electronics projected the total shareholder returns over 2024–2026 will reach about 120 trillion to 140 trillion won.
◇ 30 trillion won in cash dividends in the third quarter… The rest will be decided in Jan. next year
Among this year's shareholder return resources, Samsung Electronics will first pay about 30 trillion won in cash in the third quarter. The amount includes the regular quarterly dividends. The specific size and details will be finalized at the board meeting at the end of Oct.
The size and method of the remaining shareholder return resources will be finalized at a board meeting scheduled for late Jan. next year after the settlement of account for this year. Samsung Electronics plans to comprehensively consider cash dividends and the purchase and cancellation of treasury shares.
Accordingly, the 90 trillion to 110 trillion won presented that day will not all be paid as cash dividends. The currently outlined cash dividends total about 30 trillion won, and the allocation of the remaining resources between cash dividends and the purchase and cancellation of treasury shares will be decided in Jan. next year.
When calculating the three-year FCF, Samsung Electronics deducts advance payments for long-term supply agreements (LTA) for memory products, which are in the nature of deposits, and expenditure related to employee performance stock compensation. The company said the 90 trillion to 110 trillion won estimate is based on current financial outlooks and business plans and may change depending on actual operating results, investment execution, and cash flows.
◇ 15 trillion won buyback for employee compensation… 52.329 million shares to be bought on the market
Separately from the shareholder return plan, Samsung Electronics also approved the acquisition of 15 trillion won in treasury shares for employee stock compensation. The planned acquisition amount is 14,999,999,992,000 won. Based on the day's closing price of 281,500 won per common share, Samsung Electronics calculated the planned purchase volume at 52,285,968 shares. If the share price changes, the actual number of shares purchased may differ.
From the 24th to Nov. 21, over about three months, Samsung Electronics will buy treasury shares on the Korea Exchange. Samsung Securities, Shinhan Investment & Securities, and KB Securities will handle the purchases. The daily purchase order limit is 7,321,653 common shares. Before the buyback decision, Samsung Electronics held 79,870,794 common treasury shares, or 1.4% of the total.
The purchased shares will be used for stock-based compensation such as employee performance incentives and special management performance bonuses. In a filing, Samsung Electronics said the purpose is "to use them for stock-based compensation operated to motivate employees to generate performance."
The decision also serves as a final disclosure in response to reports in June about Samsung Electronics' large-scale buyback. After saying on June 24 and July 23 that the reports were unconfirmed, Samsung Electronics on this day presented as final the "15 trillion won buyback of treasury shares for stock compensation tied to 2026 business performance."
However, the 15 trillion won buyback for employee compensation and the 90 trillion to 110 trillion won shareholder returns differ in nature. Samsung Electronics disclosed that when calculating the three-year FCF, it deducts expenditure related to employee performance stock compensation. It distinguishes between buybacks and cancellations meant to return value directly to shareholders and purchases to secure shares to be granted to employees.
◇ 78.9 billion won for DS partner incentives… Payments based on safety and productivity
On the same day, Samsung Electronics also approved contributing 78.9 billion won to an incentive fund to be paid to small and midsize enterprises among resident partners in the DS institutional sector. This is separate from the shareholder returns and the buyback of treasury shares for employee compensation.
The fund will be used to prevent safety accidents, improve quality at semiconductor business sites, and expand win-win cooperation activities with partner companies. Payments will be divided into safety incentives and productivity bonuses. Safety incentives will be paid by grade according to each partner's evaluation results. They will be paid twice a year, in Sept. and Feb. next year. Productivity bonuses will be paid once in Feb. next year to partners not included in the safety incentive recipients. After Samsung Electronics contributes the fund to the Foundation for Large & Small Business and Agriculture & Fisheries Cooperation, the foundation will pay each partner.
Samsung Electronics said it will continue to faithfully implement its shareholder return policy and actively communicate its shareholder return plans with shareholders and the market.