April 20, 2024

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[THE INVESTOR] Samsung Electronics has canceled more than 17 million of its own common shares through its ongoing stock buyback scheme for 1 1/2 years, data showed on July 31.

According to data compiled by the Financial Supervisory Service and Korea Securities Depository, the number of the common stocks repurchased and canceled since 2016 totaled 17,530,843, accounting for 11.3 percent of the firm’s entire common shares listed so far on the market.

The Korean tech giant bought back 6.62 million stocks in 2016 and 10.91 million in 2017.

The company also repurchased 2.32 million preferred stocks last year and 1.84 million this year, together accounting for 17.4 percent of the entire preferred stocks issued on the nation’s main bourse.

Samsung’s buyback scheme, aimed at improving shareholder value, began in 2014 when Samsung Vice Chairman Lee Jae-yong effectively took the helm of the tech giant after his father and Chairman Lee Kun-hee was hospitalized due to a heart attack.

The tech firm retired around 1.1 million and 3.9 million shares in 2014 and 2015, respectively.

Market analysts consider the buyback scheme as a positive factor that will further drive up the stock price.

“Samsung’s planned repurchase of stocks, worth 2 trillion won (US$1.78 billion), this year will continue to buoy the stocks down the road,” said Lee Se-cheol, an analyst from NH Investment & Securities.

Samsung plans to buy back 670,000 common shares and 168,000 preferred shares over the next three months.

By Kim Young-won (wone0102@heraldcorp.com)