Samsung Falls 4.1% as 55 Trillion to 75 Trillion Won in Returns Remain Undecided
Key Facts
Samsung Electronics shares fell 4.1% in Thursday’s session, Oct. 29, 2026, after its shareholder-return policy arrangements disappointed some investors, according to the Associated Press. The decline came despite the company reporting record quarterly results and cash dividends of about 30 trillion won for the third quarter. Samsung is targeting total returns of 90 trillion to 110 trillion won during 2026, but about 55 trillion to 75 trillion won of that amount is still awaiting final allocation. The company said the remaining returns would include cash dividends and a large treasury-share buyback and cancellation program. However, the final amount and execution plan will not be decided before a board meeting scheduled for late January 2027.
The board approved third-quarter dividends of 4,601 won per common share and 4,601 won per preferred share, totaling about 30 trillion won, according to a Samsung statement. The dividends are part of the company’s targeted return range for 2026, which is 90 trillion to 110 trillion won. Samsung said about 35 trillion won of that total has already been paid or planned. That leaves between 55 trillion and 75 trillion won to be allocated. The figures show the gap between the specific cash dividend announced for the third quarter and a decision on how to distribute the rest of the annual returns.
Samsung says the remaining funds will be returned to shareholders through a mix of cash dividends and the buyback and cancellation of a large number of treasury shares. The company did not specify in its announcement how much would go to each channel or the size of the buyback and cancellation program. It said the execution plan, the final amount of the remaining returns and the subsequent return policy would be decided at the board meeting in late January 2027, with an announcement to follow. It also said it would consider adjusting the preferred shares’ share of the buyback and cancellation program depending on market conditions. The adjustment is intended to address the price gap between preferred and common shares, an issue the company said was drawing increasing market attention.
Although the January meeting will settle the allocation details, Samsung affirmed its commitment to actively consider the proportion of preferred shares in its buybacks and cancellations. The company said it would adjust that proportion according to market conditions, taking into account the price gap between the two share classes. This means the announced buyback program will involve not only determining how much money will be used, but also considering how purchases will be divided between common and preferred shares. The statement gave no target for that allocation or start date for implementation. Final details, including the value of the returns and the execution plan, remain among the decisions expected from the board in late January 2027.
The market reaction came alongside strong operating results reported by the company for the third quarter. Consolidated revenue reached 195.3 trillion won, up 14% quarter on quarter, while operating profit came to 107.4 trillion won. Samsung described revenue as a new quarterly record, while the stock fell despite the results, according to Associated Press data. The agency attributed the decline to some investors’ disappointment with the return policy arrangements. The move highlights that strong results did not ease investors’ concerns about how the larger remaining portion of the funds would be returned to them.
In memory, Samsung said the division’s revenue and profit reached new quarterly records. It attributed this to product-mix management focused on artificial intelligence products amid capacity constraints. It added that strong server demand drove market prices higher across all applications. These factors formed part of the backdrop to quarterly results that included record consolidated revenue and operating profit of 107.4 trillion won. Still, the stock fell 4.1% in Thursday’s session, alongside investor disappointment over the lack of final details on additional returns.
In a sector comparison during the same session, SK Hynix shares rose 2.6%, according to the Associated Press, while Samsung shares fell 4.1%. SK Hynix had announced on Oct. 28 a plan targeting shareholder returns of about 100 trillion won during 2026. The plan includes cash dividends of at least 30 trillion won and share buybacks and cancellations totaling at least 60 trillion won. That total includes a 40 trillion won program announced in August. The company said its open-market buyback program would start on Oct. 29, setting the announced program’s start date and meaning it had not begun before Thursday’s session.