SEOUL: South Korean chip giant Samsung Electronics said Friday it would buy back up to $80 billion of its own shares to boost shareholder returns, the largest such plan in the country.

The announcement came after rival SK hynix unveiled a $28.9 billion share buyback on Wednesday to reassure investors, sending its stock up 12% the following day.

Samsung, the global leader in memory chip manufacturing, held a board meeting on Friday and "approved a shareholder return plan for 2026, estimated to range from approximately 90 trillion to 110 trillion won ($80 billion)", the company said in a statement.

It added the return is designed to ensure that the "fruits of the company's growth translate into tangible benefits" for shareholders.

The company first plans to implement a cash dividend totaling approximately 30 trillion won in the third quarter, with specific details to be finalized at a board meeting in late October.

Samsung's shares, along with those of SK hynix, peaked in June on optimism over the artificial intelligence boom, but have since fallen amid investor jitters and a broader tech rout.

Samsung shares hit a record 370,000 won in mid-June and were trading at around 279,000 won on Friday.

Its shares closed up 3.9% on Friday on expectations of a massive shareholder return announcement.

According to the firm's semi-annual report, the number of minority shareholders stood at approximately 8 million, representing almost one-fifth of South Korea's adult population.

Samsung announced last month that its operating profit soared more than 1,800% in the second quarter, driven by explosive AI demand for its advanced chips.

Gains in the two companies helped propel South Korea's benchmark Kospi index to a record high above 9,000 points in mid-June, before a tech rout dragged it sharply lower.