Rumors of 300 Trillion Won Returns and Demands for 45 Trillion Won Buybacks from Samsung and Hynix: Why Retail Investors Are Calling for a Meritz-Style Prescription

The combined term 'Sam-Jeon-Nix'—referring to Samsung Electronics and SK Hynix—is currently dominating investors' search bars. This follows a wave of securities firm reports predicting that, bolstered by the AI semiconductor boom, both companies could embark on a historic shareholder return program totaling 300 trillion won. However, the market's true focus is not just on the amount of cash to be returned, but on the 'legal actions' taken by minority shareholders. We tracked the genuine intent of retail investors who, instead of receiving a few extra won in cash dividends, are engaging in collective action to demand that the company 'buy back shares and cancel them,' as well as the reality behind this massive movement.

The 300 Trillion Won Combined Return Theory: Where Did It Come From?

Rosy forecasts are emerging that the warmth from the historic semiconductor boom will finally trickle down to shareholders' wallets. Recent projections from the securities industry estimate that the combined shareholder return for Samsung Electronics and SK Hynix could reach up to 300 trillion won. It is a figure so bold that it could shake up the entire stagnant KOSPI market.

KB Securities has provided the most aggressive analysis. Based on Samsung Electronics' earnings surprise, they suggested that shareholder returns could increase from the existing 9.8 trillion won per year to as much as 100 to 200 trillion won. Meanwhile, Daish Securities analyzed that SK Hynix could secure the capacity for up to 100 trillion won in shareholder returns by exceeding its net cash target and proceeding with the asset securitization of Japan's Kioxia. Additionally, DS Investment & Securities estimated that, considering past remaining resources, the cumulative return pool held by Samsung Electronics alone could reach 131.8 trillion won.

However, there are still many hurdles to overcome behind these massive numbers that have excited the market. All these figures are merely projections based on data analysis by securities analysts; they are not finalized plans approved by the respective boards of directors. There are numerous variables ahead, including the court's decision on the extraordinary general meeting of shareholders requested by minority shareholders and the final decision-making process of each company's board. Since the actual method and final scale of shareholder returns can change based on shifts in the management environment and legal outcomes, investors should observe the market situation cautiously rather than viewing these forecasts as simple investment advice or recommendations.

Why Retail Investors Are Demanding a Meritz-Style Prescription Instead of Dividends

Behind the rosy outlook for massive cash returns, individual investors are putting forward a completely different type of argument. The minority shareholder platform ACT is not simply demanding that Samsung Electronics increase cash dividends. The core of their demand is a 'Meritz-style capital allocation.' This approach, introduced by Meritz Financial Group and praised by the market, is a rational system where a company transparently compares options—internal investment, share buybacks, and cash dividends—to determine which maximizes shareholder value before executing it.

The rationale behind retail investors demanding this prescription is clear: Samsung Electronics' current stock price is excessively undervalued compared to its corporate value. According to analysis materials from the shareholder coalition, in a climate where the stock is undervalued, the return yield from share buybacks and cancellations is 21.7%, which is significantly higher than the 13.7% yield from cash dividends. This means it is much more advantageous for shareholders when the company buys back and cancels its own shares while the stock price is low.

Accordingly, the minority shareholder coalition is taking real action to pressure the board of directors. On August 4, 2026, ACT officially began legal procedures to convene an extraordinary general meeting of shareholders. By demanding that 45.5 trillion won—half of Samsung Electronics' estimated 91 trillion won free cash flow for the second quarter of 2026—be devoted entirely to share buybacks and cancellations, they have fired the starting gun for powerful shareholder activism.

However, it remains uncertain whether these demands will be put into practice. There are many mountains to climb, such as official board decisions and court rulings, and these are merely one-sided rights claims by minority shareholders rather than investment advice or recommendations. How the significant divide between the board and the shareholder coalition will be reconciled is the primary focus of the market.

A Declaration of Shareholder Activism: Legal Steps Toward an Extraordinary General Meeting

The current movement by minority shareholders has gone beyond simple petitions or signature campaigns. On August 4, 2026, the shareholder activism platform ACT officially initiated legal proceedings to convene an extraordinary general meeting of shareholders against Samsung Electronics. Individual investors are now proposing shareholder motions directly and signaling an impending substantive legal battle.

They are engaging in collective action because they believe that, compared to future growth plans, the promises made for shareholder returns are incredibly stingy. ACT pointed out that while Samsung Electronics has established concrete plans for long-term business investment and employee compensation through 2035 or 2040, it has left its shareholder return plan for after 2027 a blank slate. Furthermore, they criticized that Samsung Electronics' current free cash flow return target is only 50%, contrasting this with global competitors like Micron Technology, which returns 100% of its free cash flow to shareholders, or Japan's Kioxia, which returns 97%. In a market structure where the overall shareholder return ratio of large Korean corporations is relatively lower than overseas counterparts, the clear gap with the global peer group has ignited the resistance of minority shareholders.

Accordingly, minority shareholders plan to table proposals for mandatory share buybacks and cancellations worth 45.5 trillion won and the setting of limits on performance bonuses for executives. The 45.5 trillion won in the proposal is exactly half of the 91 trillion won estimated free cash flow for Samsung Electronics as of the second quarter of 2026. According to the shareholder coalition's internal analysis, under the currently undervalued stock price of Samsung Electronics, the return yield from share buybacks and cancellations is calculated at 21.7%, significantly exceeding the 13.7% yield from cash dividends. This is the calculated basis for why retail investors are strongly demanding that the 'company buy back and eliminate the shares it holds' instead of just receiving dividends in their hands.

Of course, whether these demands will immediately materialize remains to be seen. This is because there are many procedural obstacles and variables, such as whether Samsung Electronics' board will accept the shareholder request for an extraordinary general meeting and the court's subsequent legal judgment. As such uncertainty exists, hasty predictions are advised against; this article is by no means intended to offer investment advice or stock recommendations for any specific stock.

Dividends vs. Share Buybacks: What Dictates the Future of Stock Prices?

From an individual investor's perspective, what is the difference between receiving dividends directly into one's account and the company buying back and canceling its own shares? At first glance, dividends, which put cash into the account immediately, might seem more attractive. However, once you peel back the tax layer, the story changes. Under current Korean tax law, high dividends can become an unexpected hurdle by increasing the burden of comprehensive income tax on financial income or dividend income tax.

On the other hand, share buybacks, where a company buys its own shares and eliminates them entirely, reduce the total number of shares circulating in the market. Just as reducing the number of slices in a pizza makes each remaining slice larger, this has the effect of automatically increasing the value per share of the stock you hold. This is the secret behind how major US tech companies have steadily driven their stock prices upward by utilizing share cancellations more actively than cash dividends.

The backdrop for the minority shareholder platform ACT initiating the extraordinary general meeting process on August 4, 2026, and demanding that Samsung Electronics buy back and cancel 45.5 trillion won in shares, is also tied to this. This amount reaches 50% of the 91 trillion won estimated free cash flow for Samsung Electronics in the second quarter. According to the shareholder coalition's analysis, the expected return yield for share buybacks and cancellations, based on the current undervalued stock price of Samsung Electronics, is approximately 21.7%. This is significantly higher than the general cash dividend yield of 13.7%. This is why the argument is being made that buying back and burning shares in the market is far more efficient for enhancing shareholder value than simply distributing cash.

The gap in return policies with global competitors is also a main reason why minority shareholders are raising their voices. The shareholder coalition points out that Micron, a global memory semiconductor competitor, returns 100% of its free cash flow to shareholders, and Japan's Kioxia also shows a high return rate reaching 97%. In contrast, the promise ratios for shareholder returns from domestic companies remain relatively conservative or unclear. Market experts believe that when the historic return resources of Sam-Jeon and Nix are channeled into large-scale share cancellations rather than ending as short-term dividend parties, a practical breakthrough will be made to resolve the undervaluation phenomenon, a chronic challenge for the KOSPI.

However, these demands from the shareholder coalition and return scenarios are based solely on independent calculations and market outlooks, and they are not investment recommendations or advice for any specific stock. Whether large-scale share cancellations will actually materialize requires careful monitoring of remaining uncertain variables, such as the official future decisions of both companies' boards and the court's judgment.

The outlook for a 300 trillion won combined shareholder return from Samsung Electronics and SK Hynix, painted in rosy terms by the securities industry, is a powerful signal that the fruits of Korea's semiconductor boom can return to the shareholders. Bold figures such as the potential for up to 200 trillion won in returns for Samsung Electronics projected by KB Securities, the 100 trillion won return rumor for SK Hynix observed by Daish Securities, and the cumulative return pool of 131.8 trillion won estimated by DS Investment & Securities are enough to excite the market.

However, the expectations of minority shareholders have already gone beyond the mere amount of money to be received back. The key is what kind of crack the request to convene an extraordinary general meeting, officially initiated by the minority shareholder platform ACT on August 4, 2026, will make in the capital allocation formula of giant corporations. According to analysis materials from the shareholder coalition, the return yield through share buybacks and cancellations is 21.7%, which significantly exceeds the 13.7% cash dividend yield. Because of this, ACT has stepped up to demand the buyback and cancellation of shares worth 45.5 trillion won, which is 50% of Samsung Electronics' free cash flow of 91 trillion won in the second quarter of this year. Compared to the aggressive shareholder return policies of global peer groups like Micron, which has a 100% free cash flow shareholder return ratio, or Kioxia, which has 97%, this is the result of accumulated frustration that existing policies of domestic companies were far too stingy to satisfy shareholders' thirst.

The uncertainties to watch going forward are clear: the legal judgment that Samsung Electronics' board of directors and the court will provide regarding ACT's request to convene the meeting, and how concretely a cancellation policy will be included in the actual shareholder return roadmap that the two companies will announce at the upcoming board meetings. However, all these scenarios are merely analyses based on the projections of securities firms and the demands of minority shareholders; the flow can change at any time depending on the board's official decisions and the court's judgment. This content is not an invitation or recommendation to invest in any specific stock, and it is time to calmly watch how the demands for developed-market-style capital allocation from retail investors change the governance and stock price landscape of Korea's representative companies.

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