SK hynix Unveils Record 40 Trillion Won Buyback After Stock Rout

SK hynix is one of the world’s biggest suppliers of DRAM and high-bandwidth memory, a critical component in AI accelerators. Surging AI demand has strengthened the South Korean chipmaker’s earnings and cash generation, but investors remain sensitive to the memory cycle and the heavy spending required to expand advanced capacity. Its decision to keep funding new fabs, including the Yongin Y2 and Cheongju M17 projects, while increasing capital returns signals confidence that it can finance growth and reward shareholders simultaneously.

On Aug. 19, SK hynix shares tumbled 9.75% before its board approved a 40 trillion won ($28.6 billion) open-market buyback, the largest ever announced by a South Korean listed company. The company plans to purchase 24.07 million common shares over about three months from Aug. 20 and cancel all of them, reducing shares outstanding by an estimated 3.3%. SK hynix also raised its shareholder-return target for 2025-2027 to at least 50% of cumulative free cash flow, from no more than 50%, while maintaining expansion investment.