[Edaily Reporter JAEMIN SONG ] SamsungElectronics and SK hynix have begun large-scale shareholder returns using cash reserves accumulated during the artificial intelligence (AI) memory boom. According to estimates from the securities industry, the funds allocated for shareholder returns by the two companies are expected to reach around 250 trillion won in the future. As major semiconductor companies move to increase dividends and repurchase shares, expectations are growing that shareholder-friendly policies will spread throughout the business community.

According to business circles on the 20th, SamsungElectronics will hold a board meeting this month to discuss implementation plans for its current shareholder return policy—including special dividends—as well as its next policy to be implemented starting in 2027. Following SK hynix’s decision the previous day to repurchase and cancel its own shares—the largest such move among domestic listed companies at 40 trillion won—speculation has arisen that SamsungElectronics may also announce a return plan exceeding 150 trillion won.

SK hynix held a board meeting and decided to purchase a total of 24.07 million common shares on the open market, worth 40 trillion won, and cancel them in full. This represents approximately 3.3% of the total issued shares. The acquisition period will last three months, from today through November 19, and the shares will be canceled immediately upon completion of the purchase. The move is intended to reduce the number of shares outstanding, thereby increasing earnings per share and share value.

This 40 trillion won represents the starting point of the company’s overall shareholder return plan. SK hynix has raised its shareholder return target—previously set “within 50%” of cumulative free cash flow (FCF) for 2025–2027—to “50% or more.” The company is also considering a plan to combine share buybacks and cancellations with cash dividends, while expanding both fixed and special dividends. The specific scale and methods of additional shareholder returns will be disclosed in October during the third-quarter earnings announcement. SK hynix explained this decision by stating, “It is based on our assessment that the company’s intrinsic value—including business competitiveness, cash generation capacity, and mid- to long-term growth potential—is not sufficiently reflected in the current stock price.”

The securities industry estimates that SK hynix’s free cash flow (FCF) will increase to approximately 29 trillion won in 2025, approximately 190 trillion to 200 trillion won in 2026, and around 270 trillion won in 2027, reaching a cumulative total of approximately 490 trillion won over the three-year period. Applying a minimum payout ratio of 50 percent, the total payout funds over the entire policy period would increase to more than 245 trillion won.

SamsungElectronics Has Accumulated 190 Trillion Won in Cash… Balancing Investment and Shareholder Returns Is Key

SamsungElectronics has also secured the cash reserves needed to support expanded shareholder returns. As of the end of the first half of the year, on a consolidated basis, cash and cash equivalents totaled 92.9164 trillion won, while short-term financial instruments amounted to 97.0366 trillion won; combined, these two items total 189.9530 trillion won. Net cash, excluding borrowings and other liabilities, was recorded at approximately 167 trillion won.

SamsungElectronics is allocating 50% of its cumulative free cash flow (FCF) from 2024 to 2026 toward shareholder returns. Under this structure, the company pays approximately 9.8 trillion won annually as regular dividends, and any remaining funds are used for special dividends or share buybacks and cancellations. SamsungElectronics’ FCF stood at approximately 20 trillion won in 2024 and 38 trillion won in 2025. With analysts projecting this year’s figure to be in the mid-to-high 200 trillion won range, estimates suggest the cumulative total over the three-year period will exceed 320 trillion won.

Park Soon-chul, SamsungElectronics’ Chief Financial Officer (CFO), stated during a recent earnings announcement, “We are devising a plan to strike the optimal balance between reinvestment for future growth and shareholder returns.” Consequently, some observers speculate that SamsungElectronics will hold a board meeting later this month to finalize a shareholder return plan exceeding 150 trillion won. However, the specific scale and method have not yet been determined.

The key factor determining the actual scale of shareholder returns is the companies’ future investment plans. SamsungElectronics faces the challenge of investing in the Yongin semiconductor cluster, the Taylor plant in the U.S., and advanced packaging technologies, while simultaneously fostering new businesses such as robotics, automotive electronics, and heating, ventilation, and air conditioning (HVAC). SK hynix is also expanding its production facilities in Yongin and Cheongju, making large-scale capital expenditures inevitable.

This is why both companies must strengthen shareholder returns by leveraging their increased cash generation while also securing the financial capacity to invest in future growth engines. Jeon Young-hyun, Vice Chairman and CEO of SamsungElectronics, stated at the annual shareholders’ meeting last March, “I promise that we will make decisions on shareholder returns in a way that enhances shareholder value in the long term,” adding, “I expect dividends to increase naturally as earnings improve.”

Global semiconductor companies are also shifting their policies toward actively returning surplus cash to shareholders after securing investment funds. Micron and SanDisk have announced plans to return 100% of their excess cash to shareholders. If SamsungElectronics and SK hynix fully implement large-scale shareholder return programs, it is highly likely that other large domestic conglomerates with ample cash reserves will also roll out shareholder-friendly policies in quick succession, such as increased dividends and share buybacks and cancellations.

Cho Dong-geun, Professor Emeritus of Economics at Myongji University, stated, “Since the AI semiconductor industry requires continuous, large-scale capital investment, shareholder returns should not be viewed as a mere competition over amounts.” He added, “While returning profits to shareholders is necessary, each company must determine the appropriate level of dividends and share buybacks and cancellations by considering its financial capacity and investment plans.”