SK Hynix is proceeding with a stock buyback and cancellation totaling 40 trillion won, the largest such case among domestic listed companies.
SK Hynix announced on the 19th that it held a board meeting and approved the proposal. The company also pledged to return more than 50% of its cumulative free cash flow (FCF) by 2027, while simultaneously pursuing stock buybacks/cancellations and dividends.
Company officials explained, "With record-breaking performance and net cash reaching approximately 69 trillion won as of the end of the second quarter this year, our cash generation capability has significantly improved. We decided on a shareholder return policy based on the judgment that the company's intrinsic value—including business competitiveness, cash generation ability, and medium-to-long-term growth potential—is not yet fully reflected in the current stock price."
The planned amount for stock buybacks totals 40 trillion won. Based on the closing price of 1.662 million won per share on the day before the board resolution, this corresponds to approximately 3.3% of issued shares (totaling 703.049 million shares). The acquisition period is scheduled from August 20 for about three months, with all acquired shares to be cancelled immediately after completion.
This represents the largest stock cancellation case among domestic listed companies. Emphasizing that financial stability targets are being achieved smoothly, the company stressed its commitment to maintaining a stable financial structure while continuing shareholder returns.
Notably, this decision involves early implementation of the existing shareholder return policy. In November 2024, SK Hynix announced it would implement shareholder returns within a range of 50% of cumulative FCF for the three-year period (2025–2027), stating that if FCF increases significantly due to performance improvements, early return before policy expiration would be considered.
Through this public disclosure, SK Hynix has changed its shareholder return scale from "within 50% of cumulative FCF" to "50% or more." Regarding the return method, the company plans to simultaneously pursue stock buybacks/cancellations and cash dividends, while also considering expanded dividend measures including existing fixed dividends and special dividends.
A SK Hynix official stated, "We plan to pursue additional shareholder returns by concurrently implementing stock buybacks/cancellations and dividends, taking into account cash flow, market conditions, and distributable profits during the policy period. Specific scales and methods will be announced following board approval at the time of the third-quarter earnings announcement."
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