SK Hynix said on Wednesday it will repurchase and cancel 40 trillion won ($28.6 billion) worth of treasury shares to enhance shareholder returns.
The South Korean memory chip manufacturer, which trades under the ticker 000660.KS, plans to allocate at least 50% of its free cash flow generated between 2025 and 2027 toward shareholder returns. The move follows a broader industry trend of prioritizing capital returns amid slowing demand growth in the semiconductor sector.
The company will pursue further shareholder returns through additional repurchases, cancellations, and dividend payments. Specific details on the size and method of these future returns will be disclosed alongside its third-quarter earnings report.
The buyback and cancellation of 40 trillion won in treasury shares represents approximately $29 billion, based on an exchange rate of 1,397.9200 won per U.S. dollar. The action underscores SK Hynix’s commitment to improving returns for equity investors amid volatile market conditions.
