The chipmaker said Wednesday that its board approved the purchase of about 24.07 million common shares or roughly 3.3 percent of its 730.49 million outstanding shares.
The buyback will begin Thursday and run through Nov. 19, with the shares purchased on the open market. SK Securities will handle the transactions, according to the Financial Supervisory Service.
The estimated number of shares is based on Tuesday's closing price of 1.662 million won. The actual number could change depending on the stock price during the three-month buyback period.
Once the buyback is completed, all the shares purchased will be canceled. This will reduce the number of outstanding shares but will not change the company's stated capital, as the shares will be bought using profits available for dividends.
The buyback comes earlier than planned under the chipmaker's three-year shareholder return policy announced in November 2024. Under the plan, it aims to return up to 50 percent of free cash flow generated from 2025 to 2027 to shareholders, with the option to make earlier payouts if cash flow increases significantly.
SK hynix has now raised the target to at least 50 percent of its cumulative free cash flow over the same period, with the money returned to shareholders through share buybacks, cancellations and cash dividends.
The decision comes as the chipmaker makes progress toward its financial goals, as it believes its strong business, cash-generating ability and long-term growth potential are not fully reflected in its current share price.
SK hynix is also considering higher dividends through its regular and special dividend programs. Any increase will depend on its financial and market conditions, with details to be announced alongside its third-quarter earnings results.
But its shares closed 9.75 percent lower at 1.5 million won later in the day, down 162,000 won from the previous session.
AJP Takeaways
• SK hynix announced on Aug. 19, 2026, that it will buy back and cancel 40 trillion won ($28.6 billion) worth of its own shares, the largest such move by a South Korean listed company.
• SK hynix plans to purchase an estimated 24.07 million shares, or about 3.3 percent of its outstanding stock, on the open market from Aug. 20 through Nov. 19, 2026.
• SK hynix plans to cancel all shares acquired under the 40 trillion won program and is considering additional shareholder returns, including higher dividends.
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