Samsung Electronics is preparing a share repurchase program valued at 90 trillion won ($58.6 billion) as part of a broader effort to resolve a protracted labor dispute with its union.
The move follows the company's agreement to provide stock bonuses to employees, a concession designed to bridge the gap in recent wage negotiations and prevent industrial action.
The buyback plan represents a significant shift in capital allocation strategy, leveraging the company's strong cash position to appease the workforce.
By offering equity-based compensation alongside a large-scale repurchase, Samsung aims to align employee interests with shareholder value while addressing the union's demands for higher remuneration.
The development comes after weeks of escalating tensions that threatened to disrupt operations at the world's largest chipmaker.
South Korean President Lee Jae Myung had previously intervened, calling for a swift resolution to the standoff, which involved approximately 47,000 workers.