Samsung Electronics shares fall 8.7% after payout plan disappoints

Samsung Electronics shares fell 8.7% on Monday after its shareholder return plan disappointed investors. The shares traded near 257,000 won. The shares fell 24,500 won from Friday's close. The board approved 2026 shareholder returns of 90 trillion won to 110 trillion won. The range equals about five times the previous high of 20.3 trillion won set in 2020. Samsung will pay roughly 30 trillion won in third-quarter cash dividends. Samsung reaffirmed its pledge to return half of its free cash flow. Analysts had modeled a bigger payout. The plan gave little detail on treasury share cancellations. Eugene Securities analyst Sohn In-joon said Samsung did not mention raising its existing shareholder return policy or canceling treasury shares. The 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. SK Hynix shares fell 2.7%. The KOSPI fell almost 3%. Investors bought about 3.5 trillion won of equity-linked securities in July. The Korea Financial Investment Association said the sales were the highest since April 2023. Notes tied to Samsung Electronics and SK Hynix led the sales.