Samsung shares slide after 90–110 trillion won plan

Samsung Electronics shares fell about 2% in Seoul on Friday, extending a sell-off that began after the company announced 90–110 trillion won in shareholder returns. The broader KOSPI index slipped roughly 0.8% as investors turned cautious ahead of the Jackson Hole economic symposium.

The package includes a 30 trillion won cash dividend for the third quarter. The board will decide in January how to allocate the remaining 60–80 trillion won among dividends, buybacks or share cancellations. The company also kept a pledge to return 50% of free cash flow generated from 2024 through 2026.

Morgan Stanley described the plan as “big capital returns, slightly below expectations.” Eugene Securities analyst Sohn In-joon noted the company did not raise its ongoing shareholder-return policy or commit to cancelling treasury shares in a way that would clearly support the share price.

Samsung’s ownership structure limits the scope for cancellations. Affiliates such as Samsung Life and Samsung Fire already hold stakes close to regulatory ownership caps. Large-scale cancellations would raise those affiliates’ percentage holdings and could force them to sell shares to comply with limits.

Kim Soo-hyun, head of research at DS Investment & Securities, estimated only about 10 trillion to 20 trillion won of the remaining 60–80 trillion won might be available for buybacks and cancellations, with much of the balance likely to be paid out as dividends.

Separately, Samsung is running a 15 trillion won repurchase program from August through November for employee stock compensation. Korea Exchange data show corporate entities have been sizeable buyers recently, helping to absorb selling pressure from other investor groups, though questions remain about the final mix of the record payout.

Mirae Asset analyst Kim Young-gun maintained a Buy rating and a 370,000 won price target, describing the market reaction as excessive and noting the semiconductor earnings uptrend remains intact and valuation has moved back toward pre-AI cycle levels.

Investors are watching for the January board decision and further details on how Samsung will split the remaining payout between dividends and share reduction measures, since that allocation will affect future earnings per share and ownership percentages.