SK Hynix Announces Record Share Buyback of $28.6 Billion
South Korean semiconductor giant SK Hynix has approved a record share buyback program worth 40 trillion won ($28.6 billion), marking the largest treasury stock cancellation in South Korea's listed company history. The plan involves repurchasing and canceling approximately 3.3% of its outstanding shares over three months, from August 20 to November 19. SK Hynix cited undervaluation concerns and aims to enhance shareholder returns by revising its commitment for the period 2025–2027 upward. The company reported holding net cash of about 69 trillion won as of Q2, supporting its ability to fund both capital investments and shareholder distributions. Despite a sharp intraday drop in share price on Wednesday, SK Hynix's stock has more than doubled this year. The move reflects growing investor pressure for the firm—supplier of high-bandwidth memory chips to Nvidia—to distribute cash amid strong earnings from AI-driven demand.
Topics: cash return to shareholders SK Hynix stock repurchase