Samsung's stock has become a hot commodity in South Korea as investors rush to pick it up on the back of increased demand for its memory products, new foundry orders, and increased profitability.

This has sent stock prices soaring over the past few months, reaching all-time highs, and there is no sign of momentum slowing down soon. Another catalyst that investors will love is Samsung dipping into the market to buy back some of its own stock.

Samsung has announced at a shareholder meeting this week that it's going to buy 7 trillion won or roughly $4.6 billion of its own stock this month. This is not strictly a buy back in the sense that it's meant to increase shareholder value, though Samsung has launched such initiatives in the past.

The reason it's buying so many shares is because it needs them to hand out to employees. Samsung recently overhauled its performance-linked stock compensation program for employees, and also introduced a performance incentive payment in stock.

Stock-based compensation is a widely used incentive for employees as it keeps them motivated to push the envelope, as their own net worths increase significantly if the company performs well and its stock continues to rise.

A significant purchase from the market of this size is likely going to support the stock price even further despite any weakness that may be present due to ongoing geopolitical factors.