SK Hynix Plans Record-Breaking 50 Trillion to 60 Trillion Won Shareholder Return

According to a report from South Korea's Seoul Economic Daily on October 26, SK Hynix is preparing to announce an additional shareholder return plan worth 50 trillion to 60 trillion KRW (about $38 billion to $45 billion), scheduled to be revealed on October 28, the same day it publishes its third-quarter earnings. The package would take the form of special dividends, with the company also reportedly weighing additional share buybacks and cancellations to meet demands from institutional and foreign investors.

The report states that SK Hynix recently completed a 40 trillion KRW buyback and cancellation. If the new plan is added, the company's total shareholder returns for the year would reach 90 trillion to 100 trillion KRW, roughly seven times last year's level and a record high in its history. The funding is underpinned by a surge in AI memory demand, which has produced strong profits and cash generation. Brokerage estimates put this year's free cash flow at about 200 trillion KRW, and the company's standing policy is to allocate more than 50% of free cash flow to buybacks, cancellations, and dividends.

As of press time on October 26, SK Hynix shares closed at 1.275 million KRW, still well below the all-time closing high of 2.919 million KRW set on June 22. The large-scale return plan is viewed as one of management's measures to help the stock recover. The plan remains subject to formal announcement with the third-quarter results on October 28, and the final form and size will be confirmed at that time.