Samsung Falls 3.58%, SK Hynix Drops 3.63% Ahead of Third-Quarter Results
Key Facts
Samsung Electronics shares fell 3.58% during trading on October 22, 2026, while SK Hynix shares dropped 3.63%, according to trading prices displayed by Investing.com, ahead of both companies' third-quarter results later this month. Samsung traded at 215,500 won, while SK Hynix traded at 1,247,000 won. The declines coincide with announced plans at both companies to return cash to shareholders and repurchase shares, with differing purposes and mechanisms. The performance contrasted with gains in August amid optimism over shareholder returns. In a report updated on August 20, 2026, Investing.com said SK Hynix shares jumped 13.9%, while Samsung rose 9%.
SK Hynix announced in a statement a program aimed at "repurchasing 40 trillion won of its shares and canceling them in full," with cancellation to follow completion of the purchases. The announcement is tied to the company's shareholder return policy, which aims to return more than 50% of cumulative free cash flow to shareholders over the policy period. The company said its net cash stood at about 69 trillion won at the end of the second quarter, a balance that demonstrates its financial capacity to fund the announced returns. Assessing the impact of these payouts on Korean equities, Reuters quoted Clarence Lee, lead portfolio analyst at T. Rowe Price, as saying that increased cash returns from the two companies alone would not be enough to eliminate the valuation discount anytime soon. Lee said: "The valuation discount on Korean stocks is unlikely to disappear in the near term simply because Samsung and Hynix are returning more cash."
Samsung's share buyback program serves a different purpose from the cancellation announced by SK Hynix, according to the company's disclosure on its investor relations website. Samsung specified the purpose of the purchases as "facilitating employee stock compensation," linking the program to compensation arrangements based on ownership of the company's shares. The disclosure identified open-market purchases as the method for executing buybacks under the program. The original schedule set August 24, 2026, as the planned start date for purchases, according to the period stated in the disclosure. The same schedule set November 21, 2026, as the expected completion date for the buyback, within the program's originally announced timeframe.
On broader shareholder returns, Samsung estimates the value of its announced plan at between 90 and 110 trillion won, according to a company statement. The plan includes distributing about 30 trillion won in cash to shareholders, the amount the company specified for planned cash distributions. These commitments come as Samsung issued third-quarter earnings guidance, including estimates for consolidated sales and operating profit. The company estimated consolidated sales of about 195 trillion won for the quarter, according to the earnings guidance disclosure published on its investor relations website. It estimated consolidated operating profit of about 107.4 trillion won for the same period, ahead of the financial results announcement expected in October.
The next officially announced dates begin with SK Hynix presenting its third-quarter 2026 results on October 28, 2026, according to its earnings announcement invitation. The company designated that date to present its results for the period in the announcement published in its newsroom. The following day, Samsung will announce its third-quarter 2026 results, according to the earnings announcement schedule on its investor relations website. Samsung set October 29, 2026, as the date for that announcement, following its preliminary guidance for sales and operating profit. After the results announcement, the decision on the remaining portion of Samsung's shareholder returns remains tied to the board meeting in January 2027, when the company said it would determine those returns.