Samsung and SK Hynix are reportedly studying the largest-ever shareholder return plan in history, totaling over $140 billion.

August 12th. According to the South Korean newspaper Seoul Economic Daily, Samsung Electronics and SK Hynix are internally researching a large-scale shareholder return plan, which could be announced by the end of this month at the earliest. With AI driving the memory chip into a supercycle, the two companies have seen a significant increase in free cash flow. The market expects that the total shareholder return through special dividends, buybacks, and share cancellations could exceed 200 trillion South Korean won (approximately $141.2 billion).

Samsung Electronics has previously committed to using 50% of the cumulative free cash flow for shareholder returns in a three-year shareholder return policy from 2024 to 2026. With a substantial increase in free cash flow this year, the market estimates that Samsung Electronics' shareholder return this year could range from 100 trillion to 125 trillion South Korean won. Some institutions even estimate around 120 trillion South Korean won. The methods may include special dividends, share buybacks, and cancellations.

SK Hynix has also committed to using 50% of the cumulative free cash flow from 2025 to 2027 for shareholder returns. The company's cash and cash equivalents reached 88 trillion South Korean won at the end of the second quarter, with net cash increasing to 69.4 trillion South Korean won. In addition to the 39.8905 trillion won raised through the Nasdaq ADR new share issuance, the market expects that the subsequent special dividends, additional buybacks, and cancellations could amount to tens of trillions of South Korean won, possibly reaching up to 100 trillion won.

However, both Samsung Electronics and SK Hynix have stated that the specific timing and scale of the shareholder return have not yet been determined and are still exploring various options to enhance shareholder value.