Samsung is planning to launch a nearly 90 trillion KRW stock buyback plan, with the stock price rising 9.35% intraday.

BlockBeats News, June 24th, according to Yonhap News Agency, Samsung Electronics recently announced a nearly 90 trillion KRW stock buyback plan. Due to an agreement reached between labor and management, a special performance bonus will be distributed in the form of share repurchases. The company needs to significantly increase its treasury stock holdings to cover the portion beyond the current ownership.

KB Securities' forecast for Samsung Electronics' operating profit this year is 37.5 trillion KRW and 54.8 trillion KRW next year. Assuming that the operating profit in 2028, during the continued super-cycle, remains the same as next year, the total operating profit for the next three years will reach 147.1 trillion KRW.

Recently, Samsung Electronics, based on the labor agreement, decided to allocate 10.5% of the operating profit as a special performance bonus for the semiconductor division. Based on this calculation, the total performance bonus for the next three years is approximately 154 trillion KRW. After deducting about 40% for tax (withholding tax), Samsung Electronics will distribute approximately 93 trillion KRW in the form of stocks.

If we adopt Goldman Sachs' forecast of a total operating profit of 151.4 trillion KRW for the next three years, the share buyback size through repurchases may further increase.