UNJournal  Kayla Lee  |  Samsung Electronics will distribute 1.3 trillion won in special dividends based on its fourth-quarter 2025 results. The move further strengthens the company's shareholder return policy in conjunction with the implementation of the separate taxation system for dividend income, and satisfies the government's requirements for listed companies that are designated "high-dividend" providers.

Samsung Electronics announced through a disclosure on January 29 that "in accordance with our 2024–2026 shareholder return policy, we have decided on a Q4 special dividend in addition to our regular quarterly dividends." As a result, the Q4 dividend payment will expand from approximately 2.45 trillion won to 3.75 trillion won, bringing total dividends for 2025 to 11.1 trillion won.

Samsung Electronics currently distributes regular cash dividends of approximately 2.45 trillion won per quarter, totaling 9.8 trillion won annually. With this special dividend added, the scale of shareholder returns has expanded significantly.

Under the separate taxation system for dividend income introduced this year, dividend recipients can choose separate taxation rather than progressive comprehensive taxation. The applicable tax rates are: 14% for amounts up to 20 million won; 20% for 20 million won to 300 million won; 25% for 300 million won to 5 billion won; and 30% for amounts exceeding 5 billion won.

With this special dividend, Samsung Electronics meets the requirements for high-dividend listed companies, raising investor expectations for tax benefits.

To be recognized as a high-dividend listed company, firms must satisfy certain conditions, including not reducing cash dividends compared to the previous year, maintaining a dividend payout ratio of 40% or higher, or maintaining a dividend payout ratio of 25% or higher while increasing dividend payments by 10% or more year-over-year. Samsung Electronics' dividend payout ratio will reach 25.1% with this special dividend.

Accordingly, dividends per share will increase from 363 won in Q4 2024 to 566 won in Q4 2025, and on an annual basis will expand from 1,446 won to 1,668 won.

In addition to expanding dividends, Samsung Electronics is also pursuing policies to enhance shareholder value through stock buybacks and cancellations. The company plans to purchase 10 trillion won worth of treasury stock from November 2024 to September 2025, canceling 8.4 trillion won worth and using the remainder for employee compensation.

Samsung Electronics' dividend scale is overwhelming in the domestic stock market. Its cumulative cash dividends over the 11-year period from 2014 to 2024 total approximately 95 trillion won, accounting for about 28% of total dividends paid by all KOSPI-listed companies (339 trillion won) during the same period.

Cumulative dividends from 2014 through the third quarter of last year have already exceeded 100 trillion won.

Through this special dividend, not only Samsung Electronics but also major affiliates including Samsung Electro-Mechanics, Samsung SDS, and Samsung E&A are implementing special dividends and joining the ranks of high-dividend listed companies.

A Samsung Electronics official explained, "This special dividend is a decision made to expand shareholder returns while actively responding to the government's shareholder value enhancement policies, including the introduction of separate taxation on dividend income."