Samsung Falls 8.7% After Record $79 Billion Payout Disappoints

Samsung Electronics’ stock dropped 8.7% on Monday after its record shareholder return plan disappointed investors.

The stock traded near 257,000 won, down 24,500 won from Friday’s close. It has now surrendered the gains that followed the board announcement.

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Why a Record Payout Still Disappointed

Samsung’s board approved 2026 shareholder returns of 90 trillion won to 110 trillion won, or roughly $65 billion to $79 billion. This is about five times the previous high of 20.3 trillion won set in 2020.

Roughly 30 trillion won will be paid as third-quarter cash dividends. Samsung reaffirmed its pledge to return half of its free cash flow.

Analysts had modeled a bigger number. The plan also offered little detail on treasury share cancellations.

“Unlike SK Hynix, Samsung Electronics did not mention the possibility of raising its existing shareholder return policy, nor did it announce a plan to cancel treasury shares that could more directly contribute to the stock price increase, which is disappointing,” Eugene Securities analyst Sohn In-joon said.

Samsung’s board also approved a 15 trillion won buyback for employee compensation. Morgan Stanley described the wider package as slightly below expectations. The company will decide on the remaining shareholder return at a January board meeting.

Korean Markets Stay Volatile as Retail Money Shifts

Meanwhile, the selloff spread across Seoul. SK Hynix slipped 2.7%, and the KOSPI shed almost 3%, extending a stretch of heavy swings that began in July.

The index fell 22% that month. Officials convened an emergency meeting after severe retail losses and curbed demand for single-stock leveraged funds.

Retail risk appetite did not retreat, though. It changed the wrapper. Investors bought about 3.5 trillion won of Equity-Linked Securities (ELS) in July, the most since April 2023, according to the Korea Financial Investment Association.

Notes tied to Samsung Electronics and SK Hynix led the sales. For Samsung shareholders, the number that may count arrives in January, when the board sets the remaining return.

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