Samsung Electronics shares dropped 8.9% on Monday after the company outlined a record 110 trillion won ($80 billion) shareholder return program that investors deemed insufficient relative to its recent gains.
The plan includes a 30 trillion won immediate cash dividend and buyback, with the remaining 80 trillion won to be distributed later in the year. Analysts noted the immediate payout fell short of rival SK Hynix’s 40 trillion won buyback announced in August, which had set a higher bar for cash returns in the sector.
Samsung’s announcement followed a two-day surge in its shares, which have climbed 100% year-to-date through August 2026. The broader KOSPI index fell more than 1% as profit-taking accelerated after the tech giant’s plan failed to meet elevated expectations driven by AI-related revenue growth.
The company did not specify how the remaining 80 trillion won would be allocated, leaving investors uncertain about the timing and structure of future returns. Market participants had anticipated a more aggressive immediate payout given Samsung’s record earnings from AI-driven demand for memory chips.
SK Hynix, another major memory chip producer, had committed to returning over 50% of its free cash flow between 2025 and 2027, reinforcing investor scrutiny of cash-return policies across the sector. Samsung reiterated a similar 50% payout ratio but provided no further details beyond the quarterly distribution.
The selloff extended to rival SK Hynix, whose shares declined 2.7%, while the KOSPI index retreated from earlier gains. Analysts attributed the underperformance to disappointment over the scale of the immediate cash return, despite Samsung’s shares remaining up sharply for the year.
