SK Hynix (SK海力士) announced on August 19 that it will buy back and fully cancel ₩40 trillion (about US$29 billion, or roughly NT$920 billion) worth of its own sharesCITE:E1CITE:E8. The company also raised its 2025–2027 shareholder return target, lifting the ceiling from "up to 50% of cumulative free cash flow" to "over 50%"CITE:E2CITE:E10. SK Hynix said the enhanced target will be met through a combination of share buybacks, cancellations, and dividendsCITE:E10.
Beyond the buyback, SK Hynix's return package already includes a quarterly cash dividend and a profit-linked employee bonus fundCITE:E6CITE:E7. On August 7, SK Hynix declared a quarterly dividend of ₩375 per share, totaling ₩273.3 billion, the same day it first flagged a review of additional shareholder returnsCITE:E6. Separately, under a new labor-management agreement reached in September 2025, SK Hynix set an annual performance bonus funded by 10% of operating profitCITE:E7.
JPMorgan analyst Jay Kwon estimates SK Hynix will return at least a further ₩180 trillion (about US$130 billion) to shareholders by 2027, on top of the newly announced planCITE:E3. That additional amount is equivalent to roughly 16% of SK Hynix's current market capitalizationCITE:E3.
SK Hynix's Korea-listed shares rose 349% from the start of the year to a June 22 peak, then fell 48.61% over less than two monthsCITE:E4. Its U.S.-listed ADR dropped 9.2% in a single session on August 18, pulling its market capitalization down to US$1.11 trillionCITE:E5. According to Reuters, SK Hynix and Samsung Electronics (三星電子) had previously posted record profits driven by surging AI memory chip demand without providing much detail on how they would return capital to shareholdersCITE:E9.
SK Hynix said further details of the expanded shareholder return plan will be released alongside its third-quarter earnings reportCITE:E11.
| Metric | Value | Evidence |
|---|---|---|
| Buyback and cancellation amount | ₩40 trillion (~US$29B / ~NT$920B) | E1, E8 |
| 2025–2027 shareholder return target | Raised from up to 50% to over 50% of cumulative free cash flow | E2, E10 |
| JPMorgan-estimated further returns by 2027 | At least ₩180 trillion (~US$130B), ~16% of market cap | E3 |
| YTD share price to June 22 peak | +349% | E4 |
| Decline from peak in under two months | -48.61% | E4 |
| Aug 18 ADR single-day move | -9.2% | E5 |
| Market cap after ADR drop | US$1.11 trillion | E5 |
| Aug 7 quarterly dividend | ₩375/share, ₩273.3 billion total | E6 |
| Performance bonus fund | 10% of operating profit | E7 |
Taken together, the sequence shows SK Hynix announcing its buyback-and-cancellation program and a higher payout ceiling in the same week its ADR fell 9.2% and its Korea-listed stock had already retraced 48.61% from a 349% year-to-date peakCITE:E4CITE:E5. The move follows Reuters' observation that SK Hynix's record profits had not been accompanied by return details, and comes twelve days after the company's August 7 dividend announcement first flagged a broader reviewCITE:E9CITE:E6. JPMorgan's estimate that a further 16% of market capitalization could follow by 2027 sets a benchmark against which the details due at SK Hynix's third-quarter earnings will be measuredCITE:E3CITE:E11.
The scale here is notable less for the ₩40 trillion headline than for the timing: SK Hynix raised its shareholder-return ceiling to 'over 50%' of 2025–2027 free cash flow in the same week Reuters noted that both SK Hynix and Samsung Electronics posted record profits without offering payout detail, and just one day after its ADR fell 9.2% in a single session. JPMorgan's own math — at least ₩180 trillion more by 2027, equal to about 16% of current market value — implies the ₩40 trillion buyback is a down payment, not the full commitment. SK Hynix has deferred the substantive terms to its Q3 earnings release, so the figure that will actually test whether this policy offsets the stock's 48.61% slide from its June 22 peak is whatever gets disclosed at that call, not this week's announcement.
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