Samsung's $58.6 Billion Buyback: The Three-Year Plan That Sent Shares Soaring

Samsung unveils a historic 90 trillion won share repurchase program, boosting stock 9% and reclaiming top market cap in South Korea amid AI-driven chip demand.

Samsung Electronics has unveiled the largest share repurchase in its corporate history — a three-year program worth 90 trillion won, equivalent to roughly $58.6 billion. The move is tightly linked to a new labor agreement that rewards semiconductor employees with stock-based bonuses, and it immediately triggered a 9.19% surge in the company's shares, lifting them to 338,500 won and restoring Samsung's status as South Korea's most valuable listed company by market capitalization.

Under the recently negotiated wage deal, 10.5% of the operating profit from the chip division will be set aside for employee compensation. The total value of shares distributed through the existing performance stock unit program is estimated at around 290 million shares, representing roughly 5% of Samsung's outstanding equity. Some 128,000 employees are enrolled in the scheme, and the buyback is designed to supply the shares needed to meet those obligations.

The scale of the repurchase dwarfs previous efforts — it is roughly three times the value of all shares Samsung bought back over the entire previous decade. The board is expected to approve the final details at its July meeting, though the company has not yet specified the exact start date or execution schedule.

Market reaction was swift and emphatic. Samsung reclaimed the top spot in Korea's equity market by market value on Wednesday, and the stock now trades 20.69% above its 50-day moving average of 280,460 won. The rally has been underpinned by surging demand for memory chips, driven by the artificial intelligence boom. Over the past twelve months, the shares have climbed 163.97%, and they sit just 9.61% below the 52-week high of 374,500 won — a level that now looks within reach given the buyback's magnitude.

Analysts have responded by lifting their price targets. Nomura Securities raised its target on Samsung from 590,000 won to 670,000 won, maintaining a buy recommendation. The brokerage also revised its second-quarter earnings forecast upward, citing lower-than-expected provisions for performance-linked compensation. The combination of a historic buyback, strong AI-driven chip demand, and a fresh employee incentive framework has created a powerful catalyst for one of the world's largest tech stocks.