Samsung Electronics shares dropped 8.7% on Monday, dragging South Korea’s benchmark KOSPI index down by more than 1% as investors reacted to the company’s newly announced shareholder return plan.
The tech giant outlined a commitment to distribute between 90 trillion and 110 trillion won (approximately $65 billion to $79 billion) to shareholders by 2026, a figure analysts noted was broadly in line with prior market estimates. The pledge represents roughly five times the previous record set in 2020, yet it failed to meet expectations for an increase in the existing return policy or a plan to cancel treasury shares.
The announcement, made on August 21 ahead of Friday’s formal disclosure, did not include any immediate measures to enhance payouts or reduce the company’s share count. Investor sentiment soured as a result, with Samsung Electronics’ stock leading declines among South Korean blue-chip equities.
In contrast, shares of rival SK Hynix edged higher after the memory chip maker unveiled plans to repurchase and cancel 40 trillion won of its own treasury shares. SK Hynix also pledged to allocate over 50% of its free cash flow generated between 2025 and 2027 toward shareholder returns, signaling a more aggressive approach to capital allocation than Samsung’s proposal.
