Samsung Electronics is proposing a share repurchase program valued at 90 trillion won ($58.6 billion) as a key component of a settlement 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.
Samsung Electronics shares fell 3% following the initial strike announcement, reflecting investor anxiety over operational continuity.
The buyback announcement comes as a direct response to the industrial action that began earlier this week.
Over 47,000 workers initiated a strike on Thursday after wage talks collapsed, raising concerns about potential disruptions to the semiconductor and display manufacturing operations that drive the company's global supply chain.
Samsung Electronics shares fell 3% following the initial strike announcement, reflecting investor anxiety over operational continuity.
By pairing the stock bonus with a substantial buyback, management aims to mitigate the dilutive impact of the employee compensation package on existing shareholders.