Samsung unveils 90 trillion-110 trillion-won shareholder return plan

Samsung Electronics approved a plan to return about 90 trillion won to 110 trillion won ($64.9 billion to $79.4 billion) to shareholders this year, roughly five times the previous Korean corporate record of 20.3 trillion won set in 2020. The company will initially pay about 30 trillion won in third-quarter cash dividends, or roughly 5,000 won per share, compared with 374 won in the second quarter. Samsung shares briefly climbed to 285,000 won before surrendering their gains in after-hours trading and closing at 270,000 won, below the previous session. Investors remain concerned that the company has not specified the scale or method of future buybacks or cancellations, which will be decided by the board in January next year after full-year results are finalized. Morgan Stanley described the increase as largely expected and slightly below recent expectations, while KB Securities had estimated returns could reach 200 trillion won. Analysts say the policy may weigh on the Kospi in the short term, although lower prices could attract bargain hunters and foreign capital. The plan may also support the Korean won if Samsung converts foreign-currency holdings into won, with iM Securities analyst Park Sang-hyun saying the dollar-won exchange rate could fall to around 1,350 won amid additional currency-conversion demand.

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