Samsung Electronics to Resume Aggressive Shareholder Return Plan, May Align with 2017 Program

Huo Xing Finance reports that on July 30, Citrini analyst Jukan, citing a report from Korea’s Meritz Securities, stated that Samsung Electronics is expected to announce within the coming weeks a shareholder return plan comparable in scale to its aggressive 2017 initiative—the first such restart of an “early execution plan” in nearly a decade. Specific measures include increasing dividends, excluding merger and acquisition expenses from free cash flow calculations, and returning 50% of free cash flow directly to shareholders. The Meritz report notes that Samsung’s management has acknowledged that recent stock price declines have led to the company’s shares being undervalued, and direct shareholder value-enhancing actions such as buybacks and cancellations are expected to be implemented first. Samsung Electronics has faced pressure in July due to broad declines in the memory chip sector and forced liquidations from leveraged ETFs, leaving its current price significantly discounted compared to its June high. If implemented, this return plan would mark a structural shift in Samsung’s capital allocation strategy from conservative expansion toward greater emphasis on shareholder returns.