Samsung Electronics sought to reassure investors on Wednesday by promising to review its shareholder return policy every three years and continue heavy investment, as its share price sags despite record earnings.
Record profits have left the South Korean firm sitting on a $50 billion cash pile, equivalent to more than a fifth of its market capitalization. Even so, its shares are down 2 percent so far this year at a deep discount to peers like Apple, largely because of its investor-unfriendly returns.
"Our management view is that our product valuation multiple does not truly reflect our earnings growth and leadership position in the IT industry," Chief Financial Officer Lee Sang-hoon said at a day-long seminar for analysts in Seoul.
(Read more: Is Samsung losing its earnings momentum?)
Lee said Samsung would modify its dividend strategy based on a target yield, and manage its shareholder return policy on a three-year basis to reflect changes in business conditions.