Samsung Electronics shares climbed on Friday after reports suggested the South Korean technology giant is preparing a shareholder return plan worth more than 100 trillion won, or about $72 billion.
The company’s board is expected to meet on Friday to discuss the proposal, with a decision potentially coming after the local market closes.
Samsung May Announce Major Shareholder Return Plan
According to media reports, Samsung’s planned package could exceed 100 trillion won and may include a special dividend.
The company is also expected to allocate roughly 50% of its free cash flow toward shareholder returns.
MoneyToday first reported the plan on Thursday, noting that the program is likely to focus mainly on cash dividends rather than share buybacks.
Samsung Shares Extend Strong Gains
Samsung shares listed in Seoul rose around 3% to 279,000 won on Friday.
The advance followed a nearly 10% gain in the previous trading session, highlighting strong investor interest ahead of the expected board decision.
The latest move has also been supported by broader optimism surrounding South Korea’s semiconductor sector.
SK Hynix Also Announces Major Capital Return
Samsung rival SK Hynix also posted strong gains.
Its shares rose about 3.6% on Friday after surging 12.7% in the previous session.
The company recently announced a 40 trillion won share buyback and cancellation program, adding to expectations that major South Korean chipmakers are placing greater emphasis on shareholder returns.
AI Chip Demand Supports Samsung Earnings
Samsung recently reported a record second-quarter operating profit, helped by strong demand for memory chips used in artificial intelligence infrastructure.
The rapid expansion of AI data centers has increased demand for advanced memory products, providing a significant boost to semiconductor manufacturers.
This stronger earnings backdrop could give Samsung more flexibility to return capital to shareholders.
Existing Policy Already Targets 50% of Free Cash Flow
Samsung’s current shareholder return policy calls for distributing 50% of free cash flow generated between 2024 and 2026.
The company has been returning capital through regular dividends, with additional distributions possible when surplus cash is available.
If the new proposal is approved, it could represent a significant extension or expansion of that strategy.
Investors Await Official Confirmation
Samsung has not yet officially confirmed details of the reported shareholder return program.
Investors will therefore be watching the company’s board meeting closely for information on the final size of the package, the role of special dividends and any potential changes to its existing capital-return framework.
A plan exceeding $72 billion would rank among Samsung’s most significant shareholder initiatives and could provide additional support for the stock if investors view the payout structure favorably.
