Large buyback expectations ignite the market, Samsung Electronics' stock price surges nearly 10% and regains its position as South Korea's top market value.

According to foreign media reports, Samsung Electronics (SSNLF) plans to implement a stock buyback plan worth up to 900 billion Korean won (approximately 590 billion USD), with specific details expected to be announced in the near future. Samsung Electronics stated in regulatory filing on Wednesday that it is considering repurchasing stocks for a stock-based employee compensation plan based on performance in 2026, but emphasized that specific details such as timing and scale have not yet been determined. Boosted by this news, Samsung Electronics' stock price surged nearly 10% during Wednesday's trading session on the Korean exchange. Under this plan, stocks received by employees will be awarded as bonuses, with one-third immediately sellable, another third locked for one year, and the remaining third needing to be held for an additional year before being disposed of. Samsung management and the union reached a compensation agreement last month, where the company is expected to use about 10.5% of annual operating profit in stock form for special bonuses in the chip division. This move has raised concerns within the company about fairness in distribution. The report also noted that in support of the "Performance Stock Unit" compensation plan introduced last October, Samsung Electronics may need to further repurchase shares. This plan aims to more closely link employee incentives with long-term stock performance. With the AI boom driving a surge in demand and prices for storage chips, Samsung Electronics and its chip competitor SK Hynix are expected to record record profits in the next two years. Boosted by the buyback news, Samsung Electronics rose 9.8% at the close of trading on Wednesday, significantly outperforming SK Hynix's 1% increase, and reclaiming the top spot in market value on the South Korean stock market.