Samsung to Launch 90 Trillion KRW Stock Buyback Plan; Shares Rise 9.35%

Huo Xing Finance reports that on June 24, according to Yonhap News, Samsung Electronics will soon launch a share buyback program worth nearly 90 trillion KRW. Following an agreement between management and labor, the company will distribute special performance bonuses in the form of self-purchased shares, necessitating large-scale acquisition of treasury shares to cover the portion exceeding current holdings. KB Securities forecasts Samsung Electronics’ operating profit at 37.5 trillion KRW this year and 54.8 trillion KRW next year. Assuming operating profit in 2028 remains at next year’s level amid a super cycle, total operating profit over the next three years will reach 147.1 trillion KRW. Under the recent labor agreement, Samsung Electronics has decided to distribute 10.5% of its operating profit as special performance bonuses for its semiconductor division, resulting in an estimated total bonus payout of approximately 15.4 trillion KRW over the next three years. After deducting approximately 40% in taxes (withholding), Samsung will distribute about 9.3 trillion KRW in shares. If Goldman Sachs’ forecast of total operating profit of 151.4 trillion KRW over the next three years is adopted, the scale of the self-purchased share buyback could expand further. According to market data, influenced by this news, Samsung’s stock opened sharply higher today, currently up 9.35%.