Samsung Electronics is expected to finalize and announce a shareholder return program worth more than KRW 100 trillion following a board meeting later this month, according to MoneyToday.

The South Korean tech giant plans to approve major shareholder return measures, including special cash dividends, at a board meeting scheduled for August, with the total value of the program expected to exceed KRW 100 trillion, MoneyToday reported on Thursday, citing industry sources.

The program is expected to be funded primarily by allocating 50% of Samsung Electronics’ free cash flow to shareholder returns. While some analysts have speculated that the company could return as much as KRW 200 trillion to shareholders, industry estimates suggest such a figure would be difficult to achieve given Samsung’s substantial spending on facilities and research and development.

Samsung Electronics spent more than KRW 55 trillion on R&D and capital investments during the first half of the year, according to the report.

The company’s shareholder return measures are expected to focus mainly on cash dividends. This would differ from SK Hynix, which announced a KRW 40 trillion share buyback program a day earlier. MoneyToday noted that Samsung may favor dividends over buybacks partly because additional share purchases could create regulatory and corporate governance considerations involving its stakes in Samsung Life Insurance and Samsung Fire & Marine Insurance.

A formal shareholder return program based on 50% of free cash flow would represent a significant step in Samsung Electronics’ efforts to enhance shareholder value. An industry source cited by MoneyToday said the absolute amount returned to shareholders could increase further next year if the company’s earnings and cash flow continue to improve.

Samsung Electronics is also expected to continue reviewing additional shareholder return measures after the initial announcement, with future decisions depending on changes in free cash flow and overall financial performance.

The company previously said during its July earnings announcement that its board and management were discussing specific measures for this year’s shareholder return policy, including special dividends. Samsung said it would seek to balance shareholder returns with reinvestment requirements for future growth while maximizing shareholder value.

Samsung Electronics reported record second-quarter results, with operating profit reaching KRW 89.5 trillion and revenue totaling KRW 171.5 trillion, according to MoneyToday. The company’s strong performance was driven in part by robust demand for artificial intelligence-related memory products.