The impact of Samsung Electronics' shareholder return policy on its stock price compared to Hynix

1. Hynix will conduct a full cancellation of its 40 trillion KRW treasury stock buyback, while Samsung Electronics will provide 30 trillion KRW in cash dividends plus 15 trillion KRW in treasury stock buybacks for employees.
2. Hynix will return more than 50% of its FCF, while Samsung Electronics will return within the range of 50% of its FCF.
3. Hynix's stock surged by more than 15% due to enhanced shareholder value, whereas Samsung Electronics turned weak immediately after the announcement due to unmet expectations and the absence of stock cancellation.
While Samsung's absolute amount is at a maximum level, in terms of the qualitative aspect of shareholder value (no treasury stock cancellation), it is judged to have a negative impact on short-term stock price increases compared to Hynix's shareholder return plan, and it appears to be a negative for Chairman Lee Jae-yong and Samsung's corporate image.