Samsung Electronics is reportedly preparing for a massive additional share repurchase program that could reach as much as 90 trillion won over the coming years, driven by expanded stock-based compensation schemes and performance-linked incentive structures.
According to industry sources on the 24th, Samsung Electronics has agreed with its labor union to allocate special performance bonuses in the semiconductor division equivalent to 10.5% of operating profit. A significant portion of this compensation is expected to be delivered in the form of treasury shares, creating substantial demand for additional share buybacks beyond the company’s current holdings.
Based on market estimates from major brokerages, including KB Securities and Goldman Sachs, Samsung Electronics’ cumulative operating profit over the next three years could reach more than 1,400 trillion won under a semiconductor super-cycle scenario. This implies that total special performance bonus payouts could amount to approximately 150 trillion won, with after-tax stock-based distribution potentially reaching around 90 trillion won.
In addition to performance bonuses, Samsung’s performance share unit (PSU) program is also expected to significantly increase demand for treasury stock. The scheme, introduced last year, grants shares to all employees depending on rank, with payout volumes increasing if the company’s share price rises by the 2028 evaluation date. If current price levels are maintained, PSU-related share allocation alone could require more than 20 trillion won worth of treasury stock.
Currently, Samsung Electronics holds roughly 80 million treasury shares, valued at around 20–25 trillion won. However, combined obligations from performance bonuses and the PSU program are widely expected to exceed existing holdings, prompting estimates that the company may need to repurchase up to 90 trillion won worth of shares over the next three years.
Market observers note that while the scale of potential buybacks is unusually large, the development should be viewed through the lens of shareholder value enhancement rather than cost burden. Share repurchases typically reduce the number of outstanding shares, increasing earnings per share (EPS) and potentially supporting upward pressure on valuation. In this case, additional structural effects such as lock-up restrictions on certain awarded shares may further tighten supply in the secondary market.
Analysts also suggest that the initiative reflects a broader shift toward strengthening long-term alignment between employees and shareholders. By linking compensation more directly to equity performance, Samsung is effectively increasing its exposure to market-based incentives while simultaneously reinforcing capital return policies.
Industry officials say that the key market focus will now shift to the company’s official announcement of its buyback execution plan, which is expected to play a critical role in shaping investor sentiment and medium-term stock performance.
