"Thank You, Shareholders"... 'National Stock' Samsung Electronics Announces 1.3 Trillion Won Special Dividend

First Special Dividend in Five Years Since 2020
Expanding Shareholder Returns, Supporting Government's Shareholder Value Policy
Annual Total Dividend Reaches 11.1 Trillion Won, Cumulative Payout Exceeds 100 Trillion Won
Separate Taxation on

Samsung Electronics will pay a special dividend of 1.3 trillion won for the first time in five years to expand shareholder returns.

On the 29th, Samsung Electronics announced that it will pay a cash dividend of 566 won per common share and 567 won per preferred share as a year-end dividend. In accordance with its shareholder return policy for 2024-2026, the company is paying out approximately 2.45 trillion won per quarter, totaling 9.8 trillion won in cash dividends each year. The dividend per share for the fourth quarter increased from 363 won in 2024 to 566 won last year. Over the same period, the annual total rose from 1,446 won to 1,668 won.

This is the first special dividend since the fourth quarter of 2020 in five years. With this special year-end dividend, the quarterly dividend will increase to about 3.75 trillion won, and the total annual dividend will reach 11.1 trillion won. Samsung Electronics stated, "This special dividend is a decision to expand shareholder returns beyond the previously promised dividend level and to respond to the government's policy to enhance shareholder value, such as the introduction of separate taxation for dividend income."

On the 7th, as the KOSPI index surpassed 4600, the stock prices of Samsung Electronics and SK Hynix continued to reach new highs. The current status of the domestic stock market along with the stock prices of Samsung Electronics and SK Hynix are displayed at the Korea Exchange in Yeouido, Seoul. Photo by Jinhyung Kang

Until now, interest and dividend income of up to 20 million won per year has been subject to a 14% tax rate, while income exceeding 20 million won has been combined with other income and taxed at a maximum rate of 45% under the comprehensive income tax system. However, with the introduction of separate taxation for dividend income this year, dividend income will be taxed separately at 14% up to 20 million won, 20% from 20 million to 300 million won, 25% from 300 million to 5 billion won, and 30% for amounts exceeding 5 billion won.

With this special dividend, Samsung Electronics now meets the government's requirements for high-dividend listed companies. High-dividend listed companies must not reduce their cash dividends compared to the previous year, must have a dividend payout ratio of at least 25%, and must increase their dividend amount by at least 10% from the previous year. Affiliates such as Samsung Electro-Mechanics, Samsung SDS, and SAMSUNG E&A have also paid special dividends and are now included as high-dividend listed companies.

Samsung Electronics has continuously expanded shareholder returns through dividends and other means. From 2014 to the third quarter of last year, the cumulative amount of cash dividends exceeded 100 trillion won. The company is also working to enhance shareholder value by repurchasing and retiring its own shares. From November 2024 to September last year, Samsung Electronics repurchased a total of 10 trillion won in treasury shares, plans to retire 8.4 trillion won worth, and is using the remainder for employee compensation.