Samsung Electronics plans to buy back a total of KRW 10 trillion ($7.17 billion) of the company's shares to increase shareholder value, the company said in a statement on Friday.

It is the first time Samsung Electronics has decided to buy back shares since 2017.

The move comes after the chipmaker giant revealed that its most recent quarterly results were below market expectations.

For the third quarter of 2024, operating profit was around $6.8 billion.

Following the publication of its results, Samsung's vice president Jeon Young-hyun apologised, acknowledging the company’s performance problems and outlining strategies for improvement, such as focusing on long-term progress and promoting innovation.

"The performance that fell short of market expectations has raised concerns about the fundamental technological competitiveness and the future of the company," he said in a statement.

Samsung’s share buyback programme will be implemented in stages over the next 12 months.

The business said that shares worth KRW 3 trillion ($1.69 billion) will be repurchased and that all shares will be cancelled.

The buyback will begin from November 2024 to February 2025 and will include 50.14 million ordinary shares and 6.91 million preference shares.

The remaining KRW 7 trillion ($3.95 billion) of the buyback programme will be authorised accordingly by the board of directors, which will decide how to increase shareholder value, including when and how to utilise treasury shares.

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