SK Hynix announced plans to buy back 40 trillion won (about US$29 billion) of its own shares between August 20 and November 19, 2026. The buyback follows its US$26.5 billion listing in the United States earlier in August and marks a significant return of cash to shareholders amid a booming AI hardware market [1, 2]. Analyst Josh Gilbert at Etoro said, "The size of this buy-back is a strong signal from SK Hynix and delivers something investors have been calling for, putting its growing cash pile to work and increasing shareholder returns" [1].
SK Hynix also raised its shareholder return pledge to exceed 50% of cumulative free cash flow from 2025 to 2027, representing roughly US$170 billion. This aggressive commitment reflects investor pressure to channel more cash back amid concerns on the sustainability of AI chip spending [3, 2].
Samsung Electronics meanwhile plans a record shareholder return package valued between 90 trillion won (US$65 billion) and 110 trillion won (US$79 billion). The company is expected to finalize details following a board meeting held on August 21, 2026 [4, 5, 6, 7, 8]. Samsung's Chief Financial Officer Park Sooncheol said, "We will soon share a plan to find the optimal balance between maximising shareholder value and reinvestment for future growth while maximizing shareholder returns" [9].
Samsung plans to use about 50% of its free cash flow for returns, focusing largely on cash dividends. The company will pay roughly 30 trillion won in cash dividends in the third quarter, including its regular dividend [9, 10, 11, 8]. Citi analyst commentary projected the shareholder return initiative will provide "a meaningful floor for the share price, providing tangible downside support in the near term" [10].
The shareholder return program by Samsung is described as among the largest ever by a Korean company. Some estimates see the final package ranging between 90 trillion and 110 trillion won, though some sources expected about 100 trillion won (US$72 billion) [5, 12, 6, 7, 8]. Analysts including Albert Yong of Petra Capital noted the question remains over the split between buybacks and dividends [5]. Jung In Yun, CEO of Fibonacci Asset Management Global, said Samsung's effort "provides a meaningful cushion to the share price against macroeconomic uncertainty" [5].
Both Samsung and SK Hynix have faced investor pressure to increase cash returns amid concerns about the durability of AI hardware investments. JPMorgan Chase forecasts that SK Hynix could follow its announced buyback with additional shareholder returns worth at least US$130 billion [3, 10].
Samsung is expected to finalize the size and details of its remaining shareholder returns, including buybacks and dividends, at a board meeting scheduled for late January 2027 [8].
