The board of directors has formally approved a share buyback plan, authorizing the repurchase of shares valued at 3 trillion won within the next three months. The process will commence on Monday and continue until February 17, as outlined in an official company statement.
For the remaining 7 trillion won, the company will determine the timing and method of utilization in future board meetings, focusing on maximizing shareholder value, as reported by Yonhap news agency.
Samsung's shares have experienced a significant downturn in recent months, closing at 49,900 won on Thursday, the lowest level since June 2020. This decline is attributed to disappointing earnings and a bleak outlook for the global semiconductor sector, particularly with the incoming Donald Trump administration in the United States.
The company reiterated its commitment to providing "sustainable shareholder value" and aims to enhance its "long-term value."
In 2017, Samsung previously implemented a share buyback program, repurchasing shares worth 9.3 trillion won and canceling half of its treasury stock to boost shareholder value.
In a related development, Samsung and its largest labor union have reached a preliminary agreement for a 5.1 percent wage increase, which could resolve prolonged wage negotiations that included a weeks-long strike.
The technology corporation and the National Samsung Electronics Union, representing a significant portion (approximately 24%) of the workforce, have engaged in extensive negotiations since the beginning of the year. These discussions have focused on crucial matters such as wage adjustments, vacation policies, and bonus structures. Despite ongoing dialogue, an agreement has yet to be reached.
The union has presented a proposal that encompasses a 5.6% basic pay increment for all members, the establishment of a guaranteed day off on the union's founding day, and compensation for financial losses incurred during the strike. In response, the company has put forth a proposal for a 5.1% wage increase.