SK Hynix shares advanced 13.9% to KRW 1.71 million on Thursday after the company unveiled a record 40 trillion won ($28.6 billion) buyback program, the largest treasury-share cancellation ever by a South Korean listed firm.
The program, which commenced immediately and runs through November 19, covers approximately 24.07 million shares, or 3.3% of the company’s outstanding stock. The move follows a sharp 9.8% decline in SK Hynix shares on Wednesday, which contributed to a broader semiconductor sell-off that dragged the KOSPI index down more than 5%. Samsung Electronics, the sector’s largest player, also rebounded 9% to KRW 269,750 after falling 5.4% the prior session.
The buyback is underpinned by SK Hynix’s strong cash position, with net cash totaling around KRW 69 trillion at the end of the second quarter, largely driven by demand for AI-related memory chips. The company also raised its long-term shareholder return target, pledging to allocate more than 50% of cumulative free cash flow generated between 2025 and 2027 to shareholders, up from its previous guidance of “within 50%.”
Separately, a report by MoneyToday on Thursday cited an unnamed source indicating that Samsung Electronics is preparing a shareholder return package exceeding 100 trillion won, potentially including a special cash dividend. The company’s board is expected to approve the measures in August, though Samsung had not confirmed the figure at the time of reporting. The package builds on comments made during Samsung’s July 30 second-quarter earnings call, when management said it was actively discussing shareholder return policies and a potential special dividend for the year.
