Samsung Electronics will cancel about 87 million treasury shares worth roughly 16 trillion won ($10.9 billion) in the first half of this year as part of its efforts to enhance shareholder value, according to its 2025 business report released Tuesday.
The cancellation represents a large portion of the 105.43 million treasury shares the company held at the end of last year.
Based on Tuesday’s closing price of about 190,000 won per share, the shares slated for retirement are valued at roughly 16 trillion won.
The move follows a 10 trillion won share buyback program announced in November 2024.
In February last year, the company also retired treasury shares worth about 3 trillion won from the first round of repurchases as part of its broader shareholder return strategy.
Samsung is also expanding stock-based compensation for employees.
Under the program, employees can choose to receive 0 to 50 percent of their performance incentives — known as OPI — in company shares instead of cash, in increments of 10 percent.
The system was first introduced on a trial basis for executives in 2024 before being expanded to all employees last year.
Samsung Electronics said the program is designed to align employee incentives with shareholder interests and encourage a longer-term focus on corporate value.
yeeun@heraldcorp.com
