Record Shareholder Returns Approved Amid '200K Electronics' Cheers

Samsung Electronics held its 57th Annual General Meeting (AGM) at the Suwon Convention Center on the 18th, passing all unprecedented shareholder return proposals including a KRW 16 trillion share buyback and KRW 1.3 trillion special dividend. On the same day, Samsung Electronics' stock price reclaimed the KRW 200,000 mark during trading, eliciting cheers from shareholders.

At the AGM venue, voices of support poured in: "Thank you to management for responding to shareholders who believed and waited," and "I'm delighted that the stock price exceeded KRW 200,000 during the meeting." The atmosphere at this year's meeting, attended by approximately 1,200 people, was in stark contrast to a year ago when the company faced criticism over delays in High Bandwidth Memory (HBM) delivery and poor stock performance.

Vice Chairman Jeon Young-hyun Declares "Promise Kept"

Vice Chairman Jeon Young-hyun, who chaired the AGM for the first time as CEO and head of the Device Solutions (DS) Division, stated, "Last year, we reflected on our lack of competitiveness and promised recovery. I want to say that we have kept that promise." He emphasized, "Next year, we will develop even more differentiated technologies to maintain continued competitive advantage."

Shareholders responded with unanimous applause following Vice Chairman Jeon's remarks. He promised to strengthen technological competitiveness to secure leadership in the artificial intelligence (AI) semiconductor market, stating, "Samsung Electronics' DS Division is the world's only semiconductor company capable of providing one-stop solutions from logic to memory, foundry, and packaging."

Admits "Truth" to Wage Competitiveness Criticism

Sharp criticism regarding wage competitiveness compared to SK Hynix also emerged at the AGM. One shareholder raised questions about Samsung Electronics' response strategy, citing the intensifying competition among global semiconductor companies to secure talent.

Vice Chairman Jeon candidly acknowledged, "It is true that wage competitiveness has fallen behind competitors, as the performance-linked bonus payment rate decreased during the recent period of poor business performance in the semiconductor sector." He promised, "We are enhancing wage competitiveness through various compensation measures, and will continue to improve wage competitiveness to attract excellent talent and prevent core personnel attrition, thereby driving sustainable growth."

Cautious Stance on KRW 200 Trillion Operating Profit Forecast

Shareholders also flooded questions about the possibility of exceeding KRW 200 trillion in operating profit this year, recently raised by securities firms. This follows successive observations that performance improvements are expected, bolstered by entry into NVIDIA's supply chain and strong memory demand.

Vice Chairman Jeon maintained a cautious attitude, stating, "While a favorable business environment is expected this year due to continued memory supply shortages from increased AI demand, risks such as global macroeconomic uncertainties and finished product cost burdens also persist." He responded, "Rather than short-term performance forecasts, we will thoroughly manage risks based on strengthened technological competitiveness and business portfolio advantages to achieve solid results."

Regarding additional dividend plans, he stated, "According to the 2024-2026 three-year shareholder return policy, dividends will naturally increase as business performance improves," and "The board and management are conducting in-depth discussions on the next Phase 5 shareholder return policy, which will be announced by early 2027, including the new shareholder return policy."

Organizational Restructuring and Market Outlook

All agenda items at the AGM were approved as proposed, including the appointment of Kim Yong-kwan, Chief Strategy Officer of the DS Division, as a director, and the appointment of Professor Huh Eun-nyeong of Seoul National University as an audit committee member. Accordingly, internal directors will be maintained at three, with Song Jae-hyuk replaced by Kim Yong-kwan, while external directors will be reduced by one to five following the resignation of Director Yoo Myung-hee.

An amendment to the articles of association adjusting director terms from "three years" to "within three years" also passed. Market observers view this as a strategic move to disperse the impact of cumulative voting ahead of the revised Commercial Act's implementation.

Mirae Asset Securities raised its target price for Samsung Electronics from KRW 275,000 to KRW 300,000, a 7.3% increase, on the 18th, citing expectations for foundry division enterprise value recovery following the securing of NVIDIA's Language Processing Unit (LPU) contract manufacturing (foundry) order.

An exhibition space featuring innovative products such as next-generation HBM4 and HBM4E, Exynos 2600, Galaxy S26, and Galaxy Z Trifold was set up at the AGM venue, attracting shareholder interest.