Samsung Electronics (005930.KS) and SK hynix (000660.KS), which posted record quarterly earnings last week, said they are reviewing measures to expand shareholder returns. The backdrop is a surge in memory chip demand driven by the spread of artificial intelligence (AI).
In a statement sent to Reuters on the 5th, Samsung Electronics said it is reviewing ways to expand shareholder returns in a "sustainable way." It added that details are expected to be disclosed "soon."
"We are focusing on maintaining a sound financial structure to manage business cycle risks and secure funding for growth investments," Samsung Electronics said in the statement. "At the same time, we are also seeking ways to expand shareholder returns in a sustainable manner," it added.
Rival SK hynix also said in a separate statement that it is preparing a specific shareholder return plan by year-end. It said it expects to "meaningfully expand" shareholder returns.
"Based on our record-high cash generation capacity, we believe we can meaningfully expand shareholder returns while maintaining investment and financial soundness," SK hynix said. "We are reviewing various measures for additional shareholder returns," it added.
Meanwhile, Samsung Electronics announced preliminary second-quarter results of 171 trillion won in revenue and 89.4 trillion won in operating profit. SK hynix also achieved its highest-ever quarterly results in the same period, with revenue of 79.3187 trillion won and operating profit of 60.5426 trillion won.
