On August 24th, shares of Samsung Electronics plummeted by 8% in early trading on Monday, following the unveiling of a shareholder return plan valued at up to $79 billion, which fell short of market expectations. Despite Samsung's announcement last Friday that shareholder returns for the year would be in the range of KRW 90 trillion to KRW 110 trillion, with a cash dividend of KRW 30 trillion set to be distributed in the third quarter, investors were still anticipating that Samsung would distribute more of the cash benefits generated by the AI boom to shareholders and provide clearer details on its stock repurchase strategy. Eugene Securities analyst Sohn In-joon noted that Samsung's omission of any mention of enhancing shareholder return policies or plans to cancel treasury shares was a letdown. Morgan Stanley cautioned investors to monitor how Samsung will allocate the remaining KRW 60 trillion to KRW 80 trillion in funds in January next year, as well as its forthcoming capital return framework for the next phase.
