Samsung Electronics outlined plans to return up to 110 trillion won ($63 billion) to shareholders in 2024, aligning with its capital return strategy for 2024-2026 that targets 50% of free cash flow to investors. The announcement comes as the world's top memory chip producer benefits from elevated prices for AI-related memory components.
The program includes a third-quarter dividend payment of 30 trillion won, alongside a 15 trillion won share buyback for employee compensation. The remaining capital return will be determined in January 2027, with options for both cash dividends and stock repurchases.
Samsung's shares rose 3.9% in Seoul trading ahead of the announcement, following earlier reports that the company was considering a 90-110 trillion won payout. The stock has surged over 130% in 2024, reflecting strong investor confidence.
The move follows a similar initiative by domestic rival SK Hynix, which in August announced a 40 trillion won share buyback program amid robust demand for AI memory chips.
