Samsung Electronics and SK Hynix. Yonhap News
Samsung Electronics (005930.KS) said it is reviewing plans to expand shareholder returns in a sustainable manner. SK hynix (000660.KS) also signaled it would unveil a plan by year-end to meaningfully increase the scale of its capital returns.
According to Reuters on the 5th, Samsung Electronics said in a statement sent to the news agency that day that it is reviewing ways to strengthen shareholder returns in a “sustainable manner.”
SK hynix, in a separate statement sent to Reuters, said it plans to prepare a concrete shareholder return plan by the end of the year, adding that it expects to “meaningfully expand” the scale of its capital returns.
The expectations for expanded shareholder returns at both companies stem from record earnings driven by growing artificial intelligence (AI) demand. Samsung Electronics and SK hynix last week announced their highest-ever quarterly operating profits, helped by a memory chip boom centered on high-bandwidth memory (HBM) for AI servers.
The improved earnings have also significantly strengthened their cash-generating capacity. Securities analysts forecast that Samsung Electronics’ free cash flow (FCF) will reach about 200 trillion won this year, while SK hynix’s will reach the mid-100 trillion won range.