[Photo: Samsung Electronics]

Samsung Electronics will embark on the largest shareholder returns programme in South Korean corporate history. Samsung Electronics said on Thursday its board approved a 2026 shareholder returns plan estimated at about 90 to 110 trillion won. That is about five times the previous record of 20.3 trillion won in 2020. The company aims to return the fruits of its growth to shareholders and maintain a virtuous cycle of growth and higher shareholder value.

The decision implements Samsung Electronics' 2024 to 2026 policy under which it said it would use 50 percent of free cash flow, the money left after investments, for shareholder returns. Samsung Electronics carried out regular dividends totalling 19.6 trillion won from 2024 to 2025, paying 9.8 trillion won each year. In 2025, it also carried out a special dividend of 1.3 trillion won and executed 8.4 trillion won of treasury share buybacks and cancellations.

Including shareholder returns this year, the total for the three-year period from 2024 to 2026 is expected to reach 120 to 140 trillion won. Samsung Electronics plans to carry out cash dividends of about 30 trillion won, including regular dividends, in the third quarter of 2026.

It will finalise the details at a board meeting in late October. The remaining shareholder returns will be decided at a board meeting next January after Samsung Electronics' 2026 business results are finalised. At the January board meeting, it will determine the method and scale of returns, including cash dividends and treasury share buybacks and cancellations. Samsung Electronics also approved at Thursday's board meeting a treasury share buyback worth about 15 trillion won to compensate employees. The company said the employee-compensation buyback is also expected to boost shareholder value.

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