Samsung Electronics shares fell 8.7% on Monday after investors criticized the company's shareholder return plan, announced on August 21, as insufficient compared with rival SK Hynix's more aggressive commitments.
The plan, which promises between 90 trillion and 110 trillion wons (approximately $65 billion to $79 billion) in returns to shareholders by 2026, represents roughly five times the record set in 2020. However, the proposal did not include plans to expand the current return policy or cancel treasury stock, a move analysts noted contrasted sharply with SK Hynix's strategy.
SK Hynix, which outlined plans to repurchase and cancel 40 trillion wons in treasury stock and allocate over 50% of its free cash flow generated between 2025 and 2027 to shareholder returns, saw its shares rise modestly in response. Samsung's plan, by comparison, left investors underwhelmed, analysts said.
The broader market impact was also notable, with the KOSPI index declining more than 1% as Samsung's shares dragged down sentiment. The company's shareholder return announcement, made on a Friday, failed to meet heightened expectations set by media speculation ahead of the disclosure.
Samsung Electronics, a major component of the KOSPI, has faced increasing pressure to deliver substantial returns amid global economic uncertainty and competitive pressures in the semiconductor sector.
