[비즈한국] Samsung Electronics plans to implement a cash dividend of approximately 30 trillion won in the third quarter, including regular dividends. On August 21, the company held a board meeting and approved a shareholder return plan for 2026, estimated at approximately 90 to 110 trillion won. Specific details regarding the third-quarter shareholder return will be finalized at a board meeting in late October.
The scale and method for the remaining shareholder return will be determined at a board meeting in January 2027, after the 2026 financial results are confirmed. Samsung Electronics plans to consider various options for the remaining return, including cash dividends and the buyback and cancellation of treasury shares.
Cash Dividends and Treasury Share Cancellation Under Consideration
Shareholder return methods are broadly divided into cash dividends and the buyback and cancellation of treasury shares. Cash dividends involve direct cash payments to shareholders. Buying back and cancelling treasury shares involves the company purchasing its own shares and then retiring them, which has the effect of reducing the total number of shares in circulation.
Samsung Electronics has not yet finalized its remaining return method. Market analysts suggest that increasing cash dividends, buying back and cancelling common shares, or buying back and cancelling preferred shares are all potential options.
The cancellation of preferred shares is also being discussed as a possibility. Since preferred shares often trade at a lower price than common shares, some analysts suggest that more shares could be repurchased for the same amount of capital. However, whether preferred shares will be cancelled and the scale of such an action have not been determined.
Financial Industry Act Limits, Common Share Cancellation as a Variable
Regarding the potential cancellation of common treasury shares, the Act on the Structural Improvement of the Financial Industry—the so-called "Financial Industry Act"—is being cited as a variable. Samsung Life Insurance and Samsung Fire & Marine Insurance hold common shares of Samsung Electronics. This law restricts financial institutions from holding non-financial company stocks above a certain threshold.
Market analysts note that the common share stakes held by Samsung Life and Samsung Fire & Marine in Samsung Electronics are nearing the 10% limit imposed by the Financial Industry Act. If Samsung Electronics cancels common treasury shares, the total number of common shares would decrease, which could inadvertently increase the percentage stake held by Samsung Life and Samsung Fire & Marine.
Because of this, there are predictions that the scale of common share buybacks and cancellations could be limited. However, this is based on analysis from the securities industry, and Samsung Electronics has not confirmed the scale or method of any common share cancellation.
Preferred Share Cancellation and Cash Dividends as Alternatives
Preferred shares are stocks without voting rights. Due to the concern that common share buybacks could conflict with Financial Industry Act limits, the market is also discussing the possibility of buying back and cancelling preferred shares. Buying back and cancelling preferred shares would not have a direct impact on the common stock ownership percentage of Samsung Life and Samsung Fire & Marine.
Increasing cash dividends is another viable option. If cash dividends increase, the dividend income for Samsung Group affiliates that hold Samsung Electronics shares, such as Samsung C&T, Samsung Life, and Samsung Fire & Marine, will also rise. Individual and institutional investors would also receive dividends based on their holdings.
At present, only the third-quarter cash dividend plan and the timing for deciding the remaining return have been confirmed; whether to proceed with common share cancellation, preferred share cancellation, or additional cash dividends has not yet been decided.