Samsung Electronics’ cash holdings top 200 trillion won for first time ... doubling in a year

[Financial News] Samsung Electronics Co., Ltd., amid an unprecedented boom, has become the first South Korean company to hold more than 200 trillion won in cash.
Drawing on its formidable financial resources, Samsung Electronics Co., Ltd. is expected to implement shareholder-return measures worth as much as 110 trillion won this year, while investing more than 130 trillion won in future growth, including capital expenditure and research and development.
According to industry sources on the 8th, Samsung Electronics Co., Ltd. had cash assets totaling 214.8 trillion won at the end of the third quarter, including cash and cash equivalents and short-term financial instruments.
That marked the first time a South Korean company had surpassed 200 trillion won, as the amount rose 24.8 trillion won from 190 trillion won in the previous quarter.
That was nearly double the 108.5 trillion won recorded in the same period last year.
Net cash, excluding borrowings, also reached 197.6 trillion won, close to 200 trillion won.
Total assets rose by 32.3614 trillion won from 759.4805 trillion won in the previous quarter to 791.8419 trillion won, nearing the 800 trillion won mark.
The increased cash is expected to be used to fund shareholder returns and future investment.
In particular, shareholder returns are expected to reach 110 trillion won, the upper end of this year’s target.
Samsung Electronics Co., Ltd.’s cumulative cash dividends this year reached 35 trillion won, including 30 trillion won in the third and fourth quarters.
Given that this year’s shareholder-return plan ranges from 90 trillion to 110 trillion won, the remaining funds available for shareholder returns this year amount to 55 trillion to 75 trillion won.
As for the actual amount to be deployed, industry observers say that Samsung Electronics Co., Ltd. could use the full 75 trillion won, based on its cash flow.
With cash assets nearing 215 trillion won expected to grow further by year-end, the company should have no difficulty carrying out this year’s shareholder-return plan at its maximum target of 110 trillion won.
SK hynix, whose cash assets stood at 114.46 trillion won in the third quarter, has also set its shareholder returns for this year at 100 trillion won.
The additional 75 trillion won in shareholder returns is expected to go toward cash dividends as well as substantial share repurchases and cancellations.
When buying back its shares, Samsung Electronics Co., Ltd. also plans to actively consider increasing the proportion of preferred shares it repurchases, as their discount has recently widened.
Capital expenditure and research and development spending for future growth are also expected to each set all-time highs this year, topping 100 trillion won combined by a wide margin.
Capital expenditure is expected to total 84.4 trillion won.
That is about 60% higher than the 52.7 trillion won spent last year and about 57% above the previous all-time high of 53.6 trillion won, set in 2024.
Of the total capital expenditure, 76.8 trillion won will go to the semiconductor division (Device Solutions, or DS) to build new memory fabs and strengthen foundry operations at its fab in Taylor, Texas, in the United States.
Research and development spending came to 11.3 trillion won in the first quarter, 16 trillion won in the second and 14.4 trillion won in the third, bringing the year-to-date total to 41.7 trillion won. That has already surpassed last year’s 37.7 trillion won, an all-time annual record, and the full-year total is likely to exceed 50 trillion won.
Accordingly, both capital expenditure and research and development spending are expected to set new annual records, with their combined total surpassing 130 trillion won.
[email protected] Jang Min-kwon Reporter