Samsung board approves a 2026 shareholder return framework targeting about
90–110 tln won for 2026 and a cumulative 120–140 tln won for 2024–2026. Samsung
plans a ~30 tln won cash dividend in Q3 (includes regular dividend); size and
details to be finalized at an end‑October board meeting. The distribution method
for remaining funds after the 30 tln won dividend will be decided at a
late‑January board meeting following year‑end results, with
buybacks/cancellations or extra dividends under consideration. The board also
approved a 15 tln won share repurchase for employee incentives. Management says
the 90–110 tln won band is based on 50% of projected 2024–26 cumulative FCF less
29.3 tln won already returned in 2024–25 and excludes LTA prepayments and
employee equity spend; amounts may be adjusted for actual results, investment
needs and cash flow. By scale, 110 tln won would be the largest single‑year
shareholder return in Korean corporate history (over five times the 2020 peak of
20.3 tln won), equal to roughly 66% of Samsung’s Q2 2026 reported net cash (~167
tln won) and about 1.8x estimated 2026 capex (~62 tln won). Compared with SK
Hynix’s rapid three‑month buyback-and‑cancellation moves, Samsung is pacing
returns: Q3 cash dividend first, then a Jan decision on the remainder; Samsung’s
approach emphasizes cash dividends, SK Hynix’s is buyback‑heavy. Market
implications: simultaneous large returns from Korea’s two largest memory names
should boost KOSPI heavyweight appeal and could help narrow the Korea valuation
discount as firms shift from hoarding cash to higher share returns. The cycle
relies on sustained AI‑driven HBM/DRAM profitability; downside risks include
weaker AI capex or memory price declines that would compress free cash flow and
reduce actual return capacity.
