Samsung Electronics has announced plans to buy back up to $80 billion of its own shares, marking the largest share repurchase programme in South Korea as the chip giant moves to strengthen shareholder returns.
The announcement came after rival SK hynix unveiled a $28.9 billion share buyback plan on Wednesday in an effort to reassure investors. Its shares subsequently rose 12% the following day.
Samsung, the world’s leading memory chip maker, said its board approved a 2026 shareholder return plan estimated at between 90 trillion won and 110 trillion won, equivalent to approximately $80 billion.
The company said the plan was designed to ensure that the “fruits of the company’s growth translate into tangible benefits” for shareholders.
Samsung will first implement a cash dividend totalling approximately 30 trillion won in the third quarter, with specific details expected to be finalised at a board meeting in late October.
The announcement comes amid heightened volatility in South Korea’s technology sector. Samsung and SK hynix shares reached record levels in June on optimism surrounding the artificial intelligence boom but have since declined amid investor concerns and a broader technology market sell-off.
Samsung shares reached a record 370,000 won in mid-June before falling to around 279,000 won on Friday.
The company’s shares nevertheless closed 3.9% higher on Friday as investors anticipated a major shareholder return announcement.
Samsung’s shareholder base is also unusually large. According to the company’s semi-annual report, the number of minority shareholders stood at approximately eight million, equivalent to almost one-fifth of South Korea’s adult population.
The announcement follows strong financial results from Samsung, which reported last month that its operating profit surged by more than 1,800% in the second quarter, driven largely by strong demand for advanced chips used in artificial intelligence applications.
The strong performance of Samsung and SK hynix also contributed to a rally in South Korea’s benchmark Kospi index, which climbed above 9,000 points to reach a record high in mid-June before a technology-sector sell-off pushed the index sharply lower.
Samsung’s latest shareholder return programme is expected to provide significant support for investors as the company seeks to maintain confidence in its long-term growth prospects amid continued volatility in the global technology market.
