Samsung Electronics shares dropped 8.7% in Seoul trading on Monday after the company unveiled a shareholder return plan that analysts said fell short of market expectations.
The group proposed returning between 90 trillion and 110 trillion won ($65 billion to $79 billion) to investors by 2026, a figure roughly five times the previous record set in 2020. The announcement, made on August 21, followed weeks of speculation that the return could reach as high as 150 trillion won.
Investor sentiment soured as rival SK Hynix separately disclosed a more aggressive program. The memory-chip maker said it would repurchase and cancel 40 trillion won of treasury shares and allocate over 50% of its free cash flow generated between 2025 and 2027 to shareholder returns. SK Hynix's stock edged higher after the announcement.
Analysts noted that Samsung's proposed return amount aligned with figures previously cited in media reports ahead of Friday's announcement. However, the lack of additional measures—such as treasury share cancellations—contrasted with SK Hynix's plan and weighed on Samsung's shares. The broader Kospi index fell more than 1% as Samsung's decline led sector losses.
The market reaction underscored investor preference for more substantial capital return policies, particularly in a sector facing cyclical headwinds.
