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Samsung shares slide 8% as payout plan disappoints

Samsung Electronics shares fell as much as 8% in early Seoul trade on August 24.

The South Korean chipmaker said annual shareholder returns could reach up to 110 trillion won (about US$79.4 billion), which analysts said fell short of expectations.

Samsung said on August 22 that this year’s shareholder returns would be more than five times its previous peak of 20.3 trillion won (US$14.6 billion) in 2020.

The returns would include 30 trillion won (US$21.6 billion) in cash dividends in the third quarter.

Samsung’s investor relations policy says shareholder returns are delivered through dividends and share repurchases, including treasury shares.

Eugene Securities analyst Sohn In-joon said Samsung did not mention the possibility of raising its existing shareholder-return policy or announce a plan to cancel treasury shares.

Rival chipmaker SK hynix rose 0.4%, while South Korea’s benchmark KOSPI index fell 1.5%.

Investor focus on treasury shares has increased as South Korea has tightened related rules.

🔗 Source: Reuters

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