Samsung to convene board meeting, weighs up to US$79 billion in shareholder returns
The package is expected to range between 90 trillion won (US$65 billion) and 110 trillion won
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[SEOUL] Samsung Electronics plans to hold a board meeting on Friday (Aug 21) afternoon to discuss a new shareholder return package which could be worth as much as 110 trillion won (US$79 billion), according to persons familiar with the matter.
The board meeting is scheduled to take place around 4 pm local time after the close of the Korean stock market, and the company is set to disclose the details of the programme shortly afterwards, said one of the persons, asking not to be named discussing private information.
The size of the shareholder return package is expected to range between 90 trillion won and 110 trillion won, making it one of the company’s most significant capital return initiatives, one of the persons said.
Earlier, South Korea’s MoneyToday reported on Thursday that the company is set to announce a new shareholder return policy later in August, worth more than 100 trillion won or US$71.75 billion.
A Samsung representative declined to comment.
Investors are closely watching how Samsung plans to allocate the funds between dividends and share buybacks, as well as the time frame for carrying out the programme.
Any decision from the Friday board meeting, which was also reported earlier by the Nikkei, is expected to provide more clarity on Samsung’s capital allocation strategy and its cash flow outlook.
Investors are clamouring for greater returns after South Korean chipmakers benefited from frenzied global demand for the semiconductors needed to drive artificial intelligence development.
Samsung and its rival SK Hynix have been under growing investor pressure to return more of their AI-driven cash gains to shareholders through dividends and buybacks after their record-high profits failed to ease investor jitters about AI spending.
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SK Hynix said on Wednesday it will buy back and cancel 40 trillion won of treasury shares and allocate more than 50 per cent of free cash flow generated between 2025 and 2027 to boost shareholder returns. BLOOMBERG, REUTERS
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