Samsung Electronics expects to return 90 trillion to 110 trillion won ($65.1 billion to $79.52 billion) to shareholders in 2026, calling it the largest such package ever from a Korean company. The move follows a share buyback announcement from domestic rival SK Hynix days earlier, as both chipmakers ride record profits from AI-driven memory demand.
Samsung Electronics said on Friday it expects shareholder returns to total between 90 trillion won and 110 trillion won ($65.1 billion to $79.52 billion) in 2026. The company said the package would be "the largest ever by a Korean company."
The announcement comes just days after SK Hynix disclosed a 40 trillion won ($29 billion) share buyback, marking a blockbuster week for shareholder returns among South Korea's chip giants. Samsung's stock is up around 135% year-to-date.
How the payout is structured
Samsung plans to pay about 30 trillion won in cash dividends in the third quarter, including its regular quarterly dividend, with details finalized at a board meeting in late October. The company will decide the size and details of the remaining returns, including a mix of cash dividends and buybacks, at a board meeting in late January 2027.
The plan sits within Samsung's 2024-2026 program, under which it pledged to return half of its free cash flow to shareholders while maintaining annual regular dividends of 9.8 trillion won. Samsung paid 20.9 trillion won in cash dividends across 2024 and 2025 combined and spent 8.4 trillion won on share repurchases for cancellation over the same period.
AI-driven profits fuel the buildout
Samsung and SK Hynix have posted record profits from the buildout of AI data centers that use their semiconductors. Samsung's operating profit jumped more than 12-fold year on year to more than $100 billion in the first half, while SK Hynix's rose fivefold to about $70 billion. Analysts expect full-year combined operating profit between the two companies to top $400 billion.
However, shares of Samsung and SK Hynix have fallen 22% and 41% respectively from their highs in June, even as both remain up sharply over the past year. Investors are watching whether the distributions can ease concerns about the durability of AI-related chip demand in a historically cyclical industry.
Sources: CNBC, Financial Times
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