Rewarding Employees with Stock
Samsung Electronics Plans 90 Trillion Won Stock Buyback to Fund Employee Bonuses
Anonymous
Key Points
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One-third of employees’ stock bonus shares can be sold immediately, with the remaining portions becoming available over the next two years.
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The Device eXperience (DX) division is set to receive about 6 million won per employee in company shares as part of the stock-based rewards.
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A Performance Stock Unit (PSU) system was introduced in October last year, which underpins the need for additional treasury-share purchases to satisfy PSU awards.
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The buyback is planned to begin in phased purchases as early as next month, totaling up to 90 trillion won over three years (roughly 30 trillion won annually), following a prior 10 trillion won buyback completed in six months.
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Industry reports note potential concerns about internal inequality, given the wage deal tying 10.5% of operating profit for the DS division’s special stock bonuses.
Samsung Electronics is preparing to buy back up to 90 trillion won ($59 billion) of its own stock over the next three years, according to Yonhap. The news sent Samsung shares surging more than 6%, briefly helping the company reclaim its title as South Korea's most valuable company from rival SK Hynix.
The buyback is not a traditional shareholder return program. Instead, the shares will fund record stock-based bonuses for employees — the result of a hard-fought wage deal struck in May 2026. The purchases are expected to begin as early as next month, at roughly 30 trillion won per year, Bloomberg reports.
A Wage Deal Drives a $59 Billion Stock Purchase
In May 2026, Samsung management and the National Samsung Electronics Union reached a wage agreement. The deal was ratified by 73.7% of union members. It sets aside 10.5% of operating profit from the Device Solutions (DS) semiconductor division for special stock bonuses, according to Seoul Economic Daily.
Samsung projects operating profit of around 350 trillion won in 2026. That puts the pre-tax bonus pool at roughly 154 trillion won. After South Korea's 40% income tax withholding, the net payout drops to about 90 trillion won — which is exactly the size of the buyback, MarketScreener notes.
How the Stock Bonus System Actually Works
Samsung introduced a Performance Stock Unit (PSU) system in October 2025. PSUs tie pay to the company's stock price over a three-year window. To fund PSU awards, Samsung must first buy back its own shares — hence the 90 trillion won program, Businesskorea reported.
Employees do not get all their shares at once. One-third becomes available immediately, one-third after one year, and the final third after two years. This
Employees do not get all their shares at once. One-third becomes available immediately, one-third after one year, and the final third after two years. This staged schedule is designed to keep workers locked in during a critical period for Samsung's AI chip ambitions, according to Investing Live.
DS Workers Win Big, DX Workers Left Behind
The bonus gap inside Samsung is stark. Semiconductor (DS) division workers could receive up to 600 million won ($410,000) each. Meanwhile, employees in the Device eXperience (DX) division — which covers mobile phones and appliances — get just 6 million won ($4,000) in shares, Financial News reported.
That disparity is already causing friction. Union ratification among DX workers was just 21.1%, compared to 74% among DS workers. Experts warn of a potential talent drain from Samsung's mobile business. Some DX employees have staged "black clothing protests" at the company's Suwon headquarters, according to local reports.
Buyback Cheers Markets but Raises Broader Concerns
Analysts at KB Securities and Hana Securities say the buyback will shrink Samsung's freely tradable stock by roughly 290 million shares — about 5% of all outstanding common shares. With two-thirds of employee shares locked up for one to two years, the reduced supply should support Samsung's stock price, Investing Live says.
Not everyone is celebrating. The Bank of Korea warned the 90 trillion won payout to roughly 128,000 employees could overheat the "semiconductor belt" real estate market and push inflation above the 2% target. Some academics, including Professor Lee Joon-il of Kyung Hee University, argue the money would be better spent on R&D to fight Chinese chipmakers like CXMT, according to MarketScreener.
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