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Samsung to Launch Stock Buyback Plan Worth Nearly 90 Trillion Won, Shares Rise 9.35%

On June 24, South Korea's Yonhap News Agency reported that Samsung Electronics will soon initiate a stock buyback plan worth nearly 90 trillion won. This decision comes after an agreement was reached between labor and management to distribute special performance bonuses in the form of stock repurchases, necessitating a significant increase in treasury stock to cover the portion exceeding current holdings. KB Securities predicts Samsung Electronics' operating profit to be 375 trillion won this year and 548 trillion won next year. Assuming that the super cycle continues, the operating profit in 2028 will be on par with next year, leading to a total operating profit of 1,471 trillion won over the next three years. Recently, Samsung Electronics decided to allocate 10.5% of its operating profit as special performance bonuses for its semiconductor division based on the labor-management agreement, which calculates the total performance bonuses over the next three years to be approximately 154 trillion won. After deducting about 40% in taxes (withholding tax), Samsung will distribute around 93 trillion won in stock. If Goldman Sachs' forecast of a total operating profit of 1,514 trillion won over the next three years is used, the scale of the stock buyback could be further expanded. According to Bitget market data, influenced by this news, Samsung's shares experienced a significant rebound in early trading today, rising by 9.35%.

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