Samsung and SK Hynix are under pressure from investors to boost shareholder returns as they experience significant profits driven by strong demand for AI technology. With record earnings in hand, shareholders are advocating for higher dividends and stock buybacks. Currently, both firms allocate half of their free cash flow for returns, a strategy that also ties into addressing the persistent 'Korea discount' in valuations.

Aug 5 : Samsung Electronics is exploring ways to enhance shareholder returns in a "sustainable manner," the South Korean company said in a statement to Reuters on Wednesday,…

Samsung and SK Hynix are under pressure to raise dividends and share buybacks as strong AI chip profits boost cash reserves and investor expectations.