SK Hynix to Buy Back KRW 40T in Shares

According to SK Hynix, its board of directors approved a KRW 40 trillion (approximately $28.6 billion) share buyback and cancellation plan after the South Korean stock market closed on August 19. The move marks the largest share repurchase program ever announced by a listed company in South Korea.

Based on SK Hynix’s closing share price of KRW 1.662 million on the day before the board decision, the buyback would cover approximately 24.07 million shares, representing about 3.3% of the company’s roughly 730 million outstanding shares. The company plans to complete the repurchase within approximately three months starting August 20 and cancel all repurchased shares afterward.

SK Hynix said the decision reflects its view that the current share price does not fully reflect the company’s intrinsic value, considering its business competitiveness, cash-generating capability, and long-term growth potential. The company described the buyback and cancellation as an efficient capital allocation strategy.

The large-scale buyback comes after SK Hynix delivered strong financial results for several consecutive quarters, despite a sharp recent decline in its share price.

According to the company’s latest earnings report, SK Hynix recorded KRW 79.32 trillion in revenue in the second quarter of 2026, up 257% year over year. Operating profit reached KRW 60.54 trillion, representing a 557% increase from the same period a year earlier. As of the end of the second quarter, SK Hynix held approximately KRW 69 trillion in net cash.

During trading in South Korea on August 19, SK Hynix shares plunged nearly 10%. Following the announcement of the buyback plan, the company’s U.S.-listed shares rose more than 7% in premarket trading, indicating a positive initial market reaction to the capital return strategy.

SK Hynix also announced an increase in its medium-term shareholder return target for the 2025–2027 policy period. The company will raise its planned shareholder returns from “up to 50% of cumulative free cash flow” to “more than 50% of cumulative free cash flow.”

The company emphasized that shareholder returns will combine share repurchases and cancellations with cash dividends. SK Hynix is also reviewing additional measures, including higher regular dividends and the possibility of paying special dividends, as part of its efforts to enhance shareholder value.