Samsung Electronics Reportedly Plans Shareholder Return Program Worth Over $71 Billion

South Korean technology giant Samsung Electronics is set to announce a new shareholder return policy valued at more than 100 trillion won, which equates to approximately $71.75 billion, according to media reports published on Thursday. The move comes as the company plans to share record profits with its shareholders following an AI-driven chip supercycle.

According to a report by MoneyToday, which cited unidentified industry sources, the memory-chip maker will convene a board meeting at the end of August to formally approve the shareholder return plan. The proposed program includes provisions for a special dividend, with the company expected to allocate 50 percent of its free cash flow toward the initiative.

This development follows a similar announcement by local competitor SK Hynix on Wednesday. SK Hynix, which ranks as the world's second-largest memory-chip maker behind Samsung, unveiled a 40 trillion won share buyback and cancellation plan. The company stated that this represents the largest shareholder return program ever announced by a publicly listed South Korean firm. Additionally, SK Hynix announced plans to allocate more than 50 percent of the free cash flow generated between the years 2025 and 2027 toward shareholder returns.

When approached regarding the reports surrounding the upcoming board meeting and financial program, Samsung Electronics declined to comment.

"Large-scale capital allocation programs by market leaders like Samsung and SK Hynix reflect strong cash generation during sector upswings. When memory-chip makers commit half of their free cash flow to shareholder returns amid an AI-driven cycle, it signals confidence in underlying profitability. For the broader technology and semiconductor ecosystem, disciplined capital distribution alongside robust reinvestment remains a key indicator of financial health and market maturity." — Dr. Shishir Gupta, Founder & CEO, StartupLanes