[Edaily Reporter Choi Oh-hyun ] Expectations are growing for additional shareholder returns from SamsungElectronics and SK hynix ahead of their upcoming record-breaking earnings announcements. This comes as the two companies’ combined third-quarter operating profit is projected to exceed 180 trillion won, driven by a boom in artificial intelligence (AI) semiconductors. With stock prices recently on a downward trend, all eyes are on whether the two companies will play their shareholder return cards, such as large-scale dividends and share buybacks and cancellations.

According to industry sources on the 26th, SK hynix issued a clarification statement regarding rumors that it was planning a special dividend using capital gains from its investment in the Japanese semiconductor company Kioxia. SK hynix stated, “We are reviewing various shareholder return measures, but nothing has been finalized,” adding, “Subject to a board resolution, we plan to announce additional shareholder return measures on the 28th when we release our third-quarter earnings.”

SK hynix invested 395 billion yen in 2018 by participating in a consortium led by U.S.-based Bain Capital to acquire Kioxia. Of this amount, 266 billion yen was contributed to a fund, and it is reported that the company has been gradually divesting its stake. Industry estimates suggest the capital gains from this investment amount to around 20 trillion won before taxes. Given that the company announced in August its policy to return more than 50% of its cumulative free cash flow (FCF) from 2025 to 2027 to shareholders, the market expects it to unveil a shareholder return plan funded by the gains from the Kioxia investment.

SamsungElectronics is also expected to finalize its shareholder return plan soon, ahead of its earnings announcement on the 29th. SamsungElectronics plans to first distribute approximately 30 trillion won in cash dividends, including the regular third-quarter dividend. Specific details will be finalized at a board meeting later this month. The company plans to decide how to allocate the remaining funds—including cash dividends, share buybacks, and share cancellations—at a board meeting in January of next year, once its 2026 business results are finalized.

SamsungElectronics announced in August its plan to implement shareholder returns totaling 90 trillion to 110 trillion won this year. This amount is approximately five times the previous record set in 2020 (20.3 trillion won).

The company is accelerating its shareholder returns, including by completing a large-scale share buyback ahead of schedule. On the 6th, SamsungElectronics completed the purchase of approximately 15 trillion won worth of shares for employee compensation about a month earlier than planned. SamsungElectronics expects that its share buyback program for employee compensation will also contribute to enhancing shareholder value through increased buying demand in the market and a reduction in the number of shares outstanding. SK hynix completed a share buyback worth approximately 40 trillion won on the 21st, about a month ahead of its original schedule. The company plans to cancel all of the acquired shares.

Driven by record-breaking earnings, both companies’ shareholder returns have increased significantly this year. SamsungElectronics also returned a total of 19.2972 trillion won to shareholders last year, including 11.1079 trillion won in cash dividends and 8.1893 trillion won in share buybacks. Meanwhile, SK hynix and SamsungElectronics will announce their final third-quarter earnings on the 28th and 29th, respectively. Last year, SK hynix returned a total of 14.3 trillion won to shareholders, including 2.1 trillion won in dividends and 12.2 trillion won in share buybacks.