SK hynix launches 40t won buyback plan

SK hynix (SKHY) has approved a share repurchase and cancellation program totaling 40 trillion won, described in coverage as equivalent to about $28.6–$28.8 billion. The plan focuses on buying back the company’s own treasury shares and then fully cancelling them, effectively reducing the number of shares outstanding.

Based on the closing stock price of 1,662,000 won on the day before the board resolution, the 40 trillion won allocation corresponds to approximately 24.07 million common shares. This volume represents about 3.3% of SK hynix (SKHY)’s total issued shares, which stand at 730,492,365 shares.

The repurchase period is scheduled to run for roughly three months, from August 20 to November 19. SK hynix said the shares will be acquired in the open market, and all repurchased shares are planned to be cancelled once the acquisition is complete.

The company indicated that it intends to pursue additional shareholder returns during the program period through the parallel use of share repurchases, cancellations, and dividends. The approach will take into account cash flows, prevailing market conditions, and distributable profits while the program is underway.

Alongside the buyback announcement, SK hynix said it is raising its shareholder-return target to over 50% of cumulative free cash flow for the 2025–2027 period. The company plans to deliver these returns through a combination of share repurchases and cancellations together with cash dividends.

Further details on the specific shareholder-return measures, including how buybacks and dividends will be balanced, are scheduled to be disclosed when SK hynix reports its third-quarter earnings. This framework situates the current 40 trillion won program within a broader, multi-year capital-return strategy.

SK hynix said that progress toward its financial health targets remains on track. As of the end of the second quarter, the company reported net cash of approximately 69 trillion won, underscoring the scale of resources available to support the announced buyback and the wider return program.

The announcement came after a volatile trading session for SK hynix shares. Coverage noted that the stock fell 9.8% in regular trading before the disclosure of the buyback plan, but later pared losses in post-market trading after the company outlined the 40 trillion won repurchase and cancellation initiative.