00:00Samsung Electronics has announced shareholder returns of up to $110 trillion won.
00:05Now the market cares less about how much it returns than how.
00:09Preferred shares are drawing particular attention.
00:12If Samsung cancels large amounts of common stock, Samsung Life and Samsung Fire,
00:16and Marine would see their stakes rise, which could breach the Financial Industry Structure Act.
00:21So an activist fund proposed buying and canceling preferred shares first.
00:26They carry no voting rights and avoid this governance problem.
00:29Samsung said it will review ways to narrow the price gap between preferred and common shares.
00:35But it has not promised to focus on preferred shares alone.
00:38What the market is waiting for is the end of October,
00:41which shares Samsung will actually buy and cancel, and how many.
00:45How much it uses preferred shares is the key point.
