Samsung Electronics is gearing up to launch a massive share repurchase program worth 90 trillion won — approximately $58.61 billion — according to a report from South Korea’s Yonhap News Agency published Wednesday.
The memory-chip giant is expected to formally unveil the specifics of the buyback in the near future, Yonhap reported, citing unnamed sources within the industry.
The announcement comes on the heels of a pay agreement reached last month between Samsung’s management and its union. Under that deal, Samsung is expected to allocate roughly 10.5% of its operating profit toward special bonuses for workers in its chip division, with those bonuses paid out in the form of company stock. The arrangement has raised concerns about potential inequality within the broader workforce.
Yonhap estimates Samsung will need to spend around 154 trillion won to cover the bonus program in total, a figure that accounts for a 40% tax obligation.
Workers who receive treasury shares as part of their bonus will have some flexibility in how they cash out. One-third of the shares can be sold right away, while another third must be held for at least one year before selling. The remaining third requires an additional year of waiting beyond that.
(Exchange rate: $1 = 1,535.6000 won)
