SK hynix and Samsung Electronics are launching massive shareholder return programs following a cash surge from the AI memory chip boom.
SK hynix approved a share repurchase and cancellation plan in August. The company will buy back 40 trillion won of its shares. This total is equivalent to approximately $28.6 billion.
Samsung estimates between 90 and 110 trillion won will be available for shareholder returns. The company expects to distribute these funds in 2026.
South Korea launched the Corporate Value-up Program in 2024. The government initiative aims to eliminate the Korea Discount by encouraging better capital efficiency.
Investors welcomed the payouts, but analysts note that Samsung’s plan lacks a firm commitment to share buybacks. Further measures are required to close the long-standing valuation gap with global peers.