SK hynix Announces 40 Trillion Won Share Buyback to Boost Shareholder Value

SK hynix Inc. announced Wednesday that it will buy back 24.07 million common shares worth 40 trillion won, or approximately 28.7 billion US dollars. The company stated in a regulatory filing that the buyback is intended to enhance shareholder value through the cancellation of treasury stocks. The acquisition of shares will take place from Thursday through November 19, and all repurchased shares will be canceled. This action represents the largest cancellation of treasury shares by a listed company in South Korea.

SK hynix decided on the buyback after determining that its stock was undervalued relative to its intrinsic value. The company also updated its shareholder return policy for the period from 2025 to 2027. While a previous plan aimed to return up to 50 percent of cumulative free cash flow, the company now plans to spend at least 50 percent, and in some cases more than 50 percent, of that cash flow on shareholder returns through a combination of dividends and share cancellations.

Reporting on the event varied by political lean. Center outlets focused on the factual details of the regulatory filing and the company's assessment of its stock value. A center right outlet framed the move as an aggressive response to the AI memory boom and growing market pressure to share windfall profits, while also noting speculation regarding the personal finances of SK Group Chair Chey Tae won.