Shares of Samsung Electronics fell sharply on Monday after investors reacted negatively to the company’s record shareholder-return plan.
Samsung announced plans to return between 90 trillion won and 110 trillion won ($65 billion–$80 billion) to shareholders in 2026, making it the company’s largest-ever payout and roughly five times its previous record set in 2020.
However, investors had expected a more aggressive approach to share buybacks and greater clarity on how Samsung would distribute its strong AI-driven cash flows. The company maintained its commitment to return 50% of free cash flow to shareholders under its current three-year policy.
Samsung also plans about 30 trillion won in cash dividends, while further decisions on dividends, buybacks and share cancellations are expected later.
The reaction contrasted with rival SK Hynix, which recently announced a 40 trillion won buyback and plans to return more than half of its free cash flow to shareholders.
The market response highlights rising investor expectations as South Korea’s major chipmakers benefit from booming demand for AI-related memory products.
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