SK Hynix outlined its financial strategy and approach to supply agreements during its 2026 first-quarter earnings conference calls held on April 22 and 23.
The company said that given its profit-generating capacity, which it described as having risen to a record-high level, it can pursue both stronger financial health and expanded shareholder returns. It said it aims to secure financial soundness with net cash of more than 100 trillion won while increasing shareholder payouts.
SK Hynix said it will actively consider a range of shareholder-return measures, including dividends as well as share buybacks and cancellations, and will prepare a detailed execution plan within the year. It added that it will continue strengthening its financial position so it can sustain long-term, strategic investments under any market conditions.
The company also pointed to changes in contract structures amid supply constraints. It said prolonged memory supply shortages have led to a sharp increase in customer requests to secure mid- to long-term volumes. It said it is reviewing long-term supply agreements, or LTAs, with more varied structures than in the past, but current supply limits make it difficult to meet all customer demand.
SK Hynix said that if LTAs become firmly established, demand visibility would improve and investment efficiency based on profitability would also strengthen. It added that such agreements could help ease the memory industry’s recurring volatility and serve as a catalyst to lift market assessments to the next level.
* This article has been translated by AI.
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