SK Hynix Unveils $43.3 Billion More in Shareholder Returns, Taking 2026 Total to $72.2 Billion

This Year's $72.2 Billion Shareholder Return Plan Made Official

$14.4 Billion Dividend, or 20,000 Won a Share, Set for Nov. 30 Record Date

SK Hynix unveiled an additional 60 trillion won ($43.3 billion) shareholder return plan. Combined with the previously completed 40 trillion won ($28.9 billion) share buyback and cancellation program, the company's total shareholder returns for this year will reach 100 trillion won ($72.2 billion). The chipmaker said it plans to accelerate efforts to boost corporate value and strengthen shareholder-friendly management, backed by record results including quarterly revenue of more than 100 trillion won ($72.2 billion).

SK Hynix said its board on Oct. 28 approved a 20 trillion won ($14.4 billion) share buyback and cancellation plan. Of that total, 10 trillion won ($7.2 billion) will be repurchased for shareholder returns and fully canceled. The remaining 10 trillion won ($7.2 billion) will be used for employee compensation and is not included in the shareholder return total.

The company set its third-quarter cash dividend at 14 trillion won ($10.1 billion). It fixed the payout at 20,000 won a share, consisting of a 10,000 won dividend tied to strong earnings and an additional 10,000 won reflecting gains from its investment in Japanese semiconductor company Kioxia. Chief Executive Officer Kwak Noh-jung said the company has made it a principle to share most of the gains from successful strategic investments with shareholders. Under that principle, he said, this year's realized profit from the Kioxia investment will be returned through a special dividend. The record date is Nov. 30, and the dividend will be paid within one month of that date.

Additional shareholder return measures could follow in the fourth quarter. For the third and fourth quarters, SK Hynix plans to spend more than 30 trillion won ($21.7 billion) on cash dividends and more than 30 trillion won ($21.7 billion) on share buybacks for additional shareholder returns. The company completed its previously announced 40 trillion won ($28.9 billion) share buyback program last week.

SK Hynix is reinforcing a shareholder return policy based on free cash flow, or FCF, generated from earnings. The company previously said it would use more than 50% of FCF for shareholder returns. Securities industry estimates put this year's FCF at 180 trillion won ($130.0 billion) to as much as 240 trillion won ($173.3 billion).

Won Jong-hwan, Hankyung.com reporter won0403@hankyung.com