Samsung unveils $79 billion plan for shareholder payouts

Samsung Electronics, the South Korean electronics giant, announced on Friday that it expects to distribute up to 110 trillion won ($79 billion) to shareholders this year.

By doing so, the company joins its rival SK Hynix in handing over a large portion of the massive profits generated by the artificial intelligence boom, launching the largest cash dividend program in South Korean history.

The company, the world’s largest memory chip manufacturer, said in an official statement on Friday that it would distribute roughly half of its free cash flow to shareholders, including dividends worth 30 trillion won for the third quarter.

Bloomberg News had previously reported that the South Korean company was considering a plan to distribute between 90 trillion and 110 trillion won to shareholders this year.

Tom Kang, research director at financial advisory firm Counterpoint, said: “This could contribute to a broader structural shift in the Korean stock market. We see this decision as a firm step toward a management style that is more shareholder-focused, much closer to what is typical in the U.S. market.”

This comes as Samsung and SK Hynix, two major memory chip suppliers to U.S. company Nvidia, face growing pressure from investors to hand over a larger share of the profits stemming from the AI boom.

SK Hynix’s plan, which includes a 40 trillion won share buyback program, has added pressure on Samsung’s management to distribute more funds to shareholders, who point to the electronics giant’s growing cash reserves.