Samsung Electronics said Monday its board of directors has resolved to buy 3 million of its common shares and 400,000 preferred shares.
The company will start purchasing the shares three days after its public announcement Wednesday for three months. It will cost the company a total of W500 billion to buy the planned 2% of total outstanding shares. Its common stock is now W151,500 ($143.3) per share and preferred stock W69,800 per share.
Samsung's move is part of a strategy to prevent further skidding by expanding demand for shares, Samsung sources said.
It's the first time a Samsung affiliate has decided to purchase local shares since March 1988. The company denied last month the "groundless rumors" that it would purchase its own shares. Stock market sources said the company will have to lay out around W800 billion to have any effect on prices.