Samsung Electronics shares jump 9.35% on potential KRW 90 trillion buyback

Samsung Electronics may start a share buyback program worth nearly KRW 90 trillion following a labor-management agreement to pay special management performance bonuses in treasury shares, Yonhap reported on June 24. KB Securities estimated the bonuses over three years could total about KRW 154 trillion, which would translate into roughly KRW 93 trillion in stock after about 40% withholding tax. Samsung shares rose 9.35% in early trading, according to Bitget market data. The report points to a mechanism in which treasury shares, or stock a company holds itself, are used for compensation. Yonhap said Samsung needs to repurchase stock to cover a shortfall beyond its current treasury holdings, with details expected soon.

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