Samsung Electronics Co Ltd shares tumbled more than 8% on Monday after the company announced a shareholder return plan totaling between 90 trillion and 110 trillion won ($80 billion) for 2025-2027, disappointing investors who had anticipated more aggressive cash distribution.
The plan includes 30 trillion won in cash dividends for the current quarter and a 30 trillion won share buyback program. Analysts noted the total return figure was broadly in line with prior leaks, but the buyback size lagged rival SK Hynix Inc’s 40 trillion won program announced earlier this month. Samsung did not specify how the remaining funds would be allocated beyond the buyback.
The selloff followed two consecutive sessions of gains, as investors took profits after Samsung’s shares surged 100% year-to-date in 2026. The company has benefited from robust demand for memory chips tied to artificial intelligence infrastructure, driving strong earnings over the past year. However, the lack of detail on the remaining 50 trillion won to 70 trillion won in potential returns left shareholders underwhelmed.
Samsung’s decline weighed heavily on the KOSPI index, which fell more than 1% on Monday, while SK Hynix shares edged higher. The broader market reaction reflected investor disappointment over the perceived conservative approach to cash distribution amid strong free cash flow generation.
The company reiterated a commitment to returning at least 50% of its free cash flow between 2025 and 2027, aligning with SK Hynix’s stated target. Samsung’s shareholder return plan announcement came after weeks of speculation and market anticipation, underscoring the pressure on major chipmakers to reward investors amid AI-driven revenue growth.
