SK Hynix Announces US$28.6 Billion Share Buyback
SK Hynix announced a ₩40 trillion buyback and cancellation, equal to 3.3% of outstanding shares.
Shareholder returns were raised beyond 50% of cumulative free cash flow for 2025–2027.
By Akhmad Aufarafi Arraya, Keisha Tazara Mecca Suparman, Rakha Mahira Aqsha Darsono, Zeala Zeta Hadara
August 14, 2026 at 16:30 GMT+7
SK Hynix’s Board of Directors approved a resolution on Wednesday (8/19) to repurchase and fully cancel treasury shares worth ₩40 trillion, or approximately US$28.6 billion.
The transaction amounts to 24.07 million shares, representing around 3.3% of the company’s total issued shares, based on the prior day’s closing price of ₩1.662 million. The buyback will be conducted from August 20 through November 19, 2026, with all shares acquired during the period to be cancelled following the completion of the buyback.
This move is a key part of SK Hynix’s shareholder return strategy, as the cancellation will permanently reduce the number of outstanding shares. Through the transaction, the company aims to enhance shareholder value while demonstrating its commitment to disciplined capital allocation and long-term value creation.
SK Hynix Logo| Source : SK Hynix
SK Hynix has raised its 2025-2027 shareholder return target, which moves its benchmark beyond the 50% ceiling of cumulative free cash flow, which represents a significant increase in the company’s commitment to shareholder returns in the period.
These returns will be collectively delivered through share repurchases, cancellations, and cash dividends, with the company also considering fixed and special dividends to further expand payouts beyond its initial program.
This initiative has not only become another measure, but it represents the largest treasury share cancellation ever by a South Korean listed company. Moreover, this commitment equals roughly 58% of the company’s net cash position as of Q2 2026, thereby advancing the timeline of its original 2024 shareholder return program.
CEO of SK Hynix Kwak Noh-Jung | Source : The Korea Times
Following the announcement, SK Hynix’s shares declined by approximately 10% during Wednesday’s (8/19) regular trading session, before paring some of the losses in post-market trading.
The decline reflected broader investor concerns over the sustainability of AI-related spending by US technology companies, following the stock’s all-time high in June 2026. As of Q2 2026, SK Hynix’s net cash stood at nearly ₩69 trillion, reflecting its strong cash-generation capability.
The company also stated that its current share price does not fully reflect its intrinsic value, citing its competitive position, robust cash generation, and mid- to long-term growth potential.
Sources:
Bloomberg
Reuters
SK Hynix
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