Samsung Electronics announced on Friday that it will buy back shares worth a total of 10 trillion won ($7.16 billion) over the next year to enhance shareholder value, following a recent decline in its stock price.
The buyback plan, which was approved by the board of directors, includes purchasing 3 trillion won worth of shares within three months, starting Monday and continuing until February 17. The remaining 7 trillion won will be used strategically in future decisions aimed at further boosting shareholder value, with specifics to be determined at subsequent board meetings, according to Yonhap news agency.
Samsung’s stock has been dropping sharply in recent months, reaching 49,900 won on Thursday, the lowest level since June 2020. This decline follows disappointing earnings and concerns about the global semiconductor industry amid the incoming Donald Trump administration in the United States.
The company emphasized its commitment to delivering “sustainable shareholder value” and working to enhance its “long-term value.”
Samsung had previously executed a share buyback program in 2017, repurchasing shares worth 9.3 trillion won and canceling half of the treasury stocks to improve shareholder value.
In other news, Samsung and its largest labor union, the National Samsung Electronics Union, reached a preliminary agreement on a 5.1% pay increase, which could bring an end to a prolonged wage negotiation dispute and weeks-long strike. The union, representing 31,000 workers (about 24% of the workforce), had initially demanded a 5.6% pay raise, along with other benefits such as guaranteed time off on the union’s founding day and compensation for losses during the strike. Samsung had offered a 5.1% wage increase.
