SK Hynix to Buy Back and Retire $30 Billion in Stock, Boost Shareholder Returns

SK Hynix announced a significant move to boost shareholder value by planning to purchase and retire treasury stock worth approximately 40.4 trillion won. This initiative represents 3.3% of the company's total issued shares.

The company also revised its shareholder return policy, committing to return at least 50% of its cumulative free cash flow between 2025 and 2027 to shareholders. This will be achieved through a combination of stock buybacks and cash dividends, an increase from the previous commitment of 50% of free cash flow.

SK Hynix is considering expanding its dividend payouts, including fixed and special dividends. The company intends to continue acquiring and retiring treasury stock through next year, depending on cash flow, market conditions, and distributable earnings. Detailed plans regarding the scale and methods of this enhanced shareholder return will be disclosed alongside the third-quarter earnings report.