Samsung Electronics is expected to announce later this month a shareholder return policy worth more than 100 trillion won ($71.75 billion), while SK Hynix has unveiled a 40 trillion won share buyback and cancellation plan.
Samsung Electronics is expected to put the proposed shareholder return plan to its board at the end of August. The plan is expected to include a special dividend, with 50% of the company’s free cash flow allocated to the new programme.
The proposed structure would tie shareholder distributions directly to free cash flow, making cash generation an explicit part of the company’s planned return framework. Samsung Electronics plans to share record profits with shareholders amid an AI-driven chip supercycle.
The planned programme remains subject to board approval and has not yet been announced as a completed policy. Its proposed value of more than 100 trillion won and the expected allocation of 50% of free cash flow place the size of the programme and its cash-flow mechanism at the centre of the development.
SK Hynix has separately unveiled a 40 trillion won share buyback and cancellation plan. The programme is described as the largest shareholder return programme announced by a publicly listed South Korean company.
SK Hynix, the world’s second-largest memory-chip maker behind Samsung Electronics, has also said it will allocate more than 50% of free cash flow generated between 2025 and 2027 to shareholder returns.
Both companies’ shareholder-return frameworks therefore connect distributions to free cash flow. Samsung Electronics is expected to use 50% of free cash flow under its proposed programme, while SK Hynix has said more than 50% of free cash flow generated between 2025 and 2027 will be allocated to shareholder returns.
The distinction in status remains important. SK Hynix has already unveiled its 40 trillion won buyback and cancellation plan, while Samsung Electronics’ policy remains expected and is due to be considered by its board at the end of August.
If approved, the Samsung Electronics plan would establish a shareholder-return policy worth more than 100 trillion won, including a special dividend and an allocation of 50% of free cash flow. Until that board decision is made, the proposed programme remains pending rather than an implemented shareholder-return policy.
