SK hynix(000660) said after the market close that it will begin a 40 trillion won share buyback and cancellation. SK hynix, which had plunged nearly 10% in regular trading, is rebounding quickly in the NEXTRADE (NXT) aftermarket.
According to Naver Pay Securities on the 19th, SK hynix is trading at 1,637,000 won as of 5:26 p.m., down 25,000 won (1.5%) from the previous session. At the same time, Samsung Electronics is also trading down 3.54% at 259,000 won in the aftermarket.
SK hynix, which had plunged around 10% in regular trading, is surging after news of the share buyback and cancellation. SK hynix held a board meeting that day and decided to buy 24,070,000 common shares on the open market and cancel them all. The planned purchase amount is 4,004.34 billion won. The shares slated for cancellation equal about 3.3% of the current 730,492,365 shares outstanding.
SK hynix said the move is an early execution of its 2025–2027 midterm shareholder return policy. The company plans to return at least 50% of the cumulative free cash flow (FCF) generated during this period to shareholders. Free cash flow refers to the funds remaining with the company after subtracting spending on items such as capital investments from cash earned through operations.
In addition, SK hynix said it plans to continue share repurchases and cancellations through 2027. It is also considering expanding the size of dividends, including by adding special dividends to the existing fixed dividends. The specific additional return size and methods, including dividends and share buybacks, will be disclosed with the third-quarter earnings announcement.