SK Square will return at least 4.3 trillion won to shareholders out of the more than 6.2 trillion won in dividend income it is set to receive from SK hynix. This marks the largest scale since its launch in 2021, with the company deciding to double the return ratio of regular dividend income compared to its existing shareholder return policy.
SK Square publicly disclosed Monday its 2027 shareholder return plan, which includes these details. Following SK hynix’s shareholder return plan announced on the 28th of last month, with cash dividends for 2026 expected to increase to over 3 trillion won, SK Square has decided to expand the scale of its shareholder returns.
Considering its stake in SK hynix, SK Square projected that dividend income would reach more than 6.2 trillion won. It plans to utilize at least 4.3 trillion won of this amount for shareholder returns. The return scale corresponds to approximately 69% of the expected dividend income.
Specifically, SK Square will return more than 60% of the regular dividend income received from SK hynix to shareholders by 2028. This is double the level of at least 30% of regular dividend income proposed in its existing shareholder return policy for 2026–2028.
SK Square will also return the full amount of special dividend income generated from investment gains on Japanese semiconductor company Kioxia to shareholders. Unlike regular dividend income, which is recurring, a 100% return principle has been applied to special dividend income, which occurs on a one-time basis.
With this decision, SK Square will increase the proportion of profits from SK hynix’s expanded dividends that are directly returned to shareholders. However, specific details such as the method and scale of shareholder returns will be finally determined through relevant procedures after the finalization of the financial statements for the 2026 fiscal year.
Previously, in early this year, SK Square converted 5.89 trillion won in capital reserves into retained earnings, securing resources available for shareholder returns.
SK Square stated, “The announcement of this shareholder return plan expresses the board of directors’ firm will to enhance shareholder value,” adding, “We will carefully prepare new investments based on rational capital allocation principles.”
in TECH
