The announcement comes in the final year of Samsung Electronics’ three-year shareholder-return policy for 2024-26, which calls for returning 50 percent of its free cash flow to shareholders.
Samsung Electronics’ second-quarter net profit jumped nearly 1,300 percent to 90 trillion won from a year earlier, on the back of strong demand for semiconductors linked to artificial intelligence (AI).
With expectations running high, shares of Samsung Electronics rose 3.87 percent on the benchmark Korea Composite Stock Price Index (KOSPI) on Friday.
The decision also comes following a similar announcement by its chipmaking rival SK hynix Inc. amid record earnings driven by the AI boom.
Earlier this week, SK hynix said it will buy back 24.07 million common shares worth 40 trillion won as part of its plan to return up to 50 percent of its cumulative free cash flow generated over the three years from 2025 to 2027 to shareholders.
Meanwhile, Samsung Electronics said it has also decided to buy back some 15 trillion won worth of its own shares to fund special performance bonuses for employees during Friday’s board meeting.
