#South Korea #Seoul #Shareholder Return #Galaxy #Samsung

Samsung's Historic Shareholder Return Plan

In a significant decision made during its board meeting on August 21, 2026, Samsung Electronics Co., Ltd., headquartered in South Korea, approved an astonishing shareholder return plan estimated at between 90 trillion and 110 trillion won. This decision represents about five times the previous record of 20.3 trillion won set in 2020, making it the most substantial shareholder return initiative by any South Korean company to date.

The primary aim behind this monumental shareholder return is to create a tangible connection between the company’s growth and visible benefits for shareholders. By doing so, Samsung seeks to foster a virtuous cycle where corporate growth and the creation of shareholder value reinforce each other.

Samsung’s commitment to returning shareholder value is evident in its established three-year shareholder return policy, which targets 50% of its free cash flow (FCF) for distribution to shareholders from 2024 to 2026. As part of this initiative, Samsung plans to execute regular dividends totaling 19.6 trillion won over the two years, with annual payouts of 9.8 trillion won between 2024 and 2025. Additionally, a special dividend of 1.3 trillion won and share buybacks amounting to 8.4 trillion won are slated for 2025.

When factoring in the 2026 shareholder return plan, the total shareholder returns over the three-year period from 2024 to 2026 could reach an impressive 120 trillion to 140 trillion won. According to forecasts, around 30 trillion won will be distributed as cash dividends, including regular dividends in the third quarter of 2026, with final details to be confirmed in the October board meeting.

Moreover, the details regarding the remaining shareholder return will be finalized during the January 2027 board meeting, post verification of the company's performance for the entirety of 2026. This plan is likely to encompass cash dividends and additional share buybacks. The board has also sanctioned a share buyback plan amounting to around 15 trillion won, aimed explicitly at employee compensation.

This strategic move to engage in share buybacks for employee rewards is expected to contribute positively to enhancing shareholder value. Moving forward, Samsung remains committed to consistently implementing its shareholder return policy and actively communicating with both shareholders and the market.

Disclaimer: “Samsung Galaxy” is a trademark or registered trademark of Samsung Electronics Co., Ltd. All other company names, product names, and service names mentioned are trademarks or registered trademarks of their respective owners.