SK Hynix to Cancel $29B in Stock, Eyes Dividend Hike

As of August 20, 2026, SK Hynix has committed to spending 40 trillion won (roughly $29 billion) to buy back its own shares and cancel them entirely. The move covers 24.07 million shares — about 3.3% of shares outstanding — making it the largest treasury-stock cancellation ever carried out by a Korean listed company. The chipmaker says it's also weighing a bigger cash dividend.

40 trillion won (~$29B)Total earmarked for the buyback and cancellation

24.07 million sharesShares to be canceled

3.3%Share of shares outstanding being retired

69 trillion won (~$50B)Net cash on hand as of end-Q2 2026

Key points

The board approved buying back 24.07 million shares — 3.3% of shares outstanding — on the open market and canceling all of them.
The buyback is valued at roughly 40 trillion won (about $29 billion), based on the previous day's closing price of 1,662,000 won (about $1,200) per share.
Purchases run for about three months starting August 20, with the shares retired once buying wraps up.
SK Hynix raised its shareholder-return floor from up to half of three-year cumulative free cash flow to at least half.

SK Hynix's board just signed off on one of the biggest capital-return moves in Korean corporate history. The chipmaker will buy 3.3% of its own outstanding shares directly on the market and retire every one of them once the purchases wrap up, shrinking the total share count for good. At the previous day's closing price, the price tag comes to roughly 40 trillion won ($29 billion) — the largest treasury-stock cancellation by won amount ever announced by a company listed on Korea's stock exchange.

The buyback isn't the only lever SK Hynix is pulling. The company is also weighing an increase to its cash dividend, including both its regular payout and special dividends, with specifics on size and timing to be announced alongside third-quarter (July–September) earnings. On top of that, SK Hynix raised the floor on its shareholder-return policy, pledging to return at least half — up from a prior cap of "up to half" — of cumulative free cash flow over the next three years.

The timing traces back to a widening gap between fundamentals and share price. SK Hynix has been posting record quarterly earnings on the back of a red-hot memory-chip market, with net cash around 69 trillion won ($50 billion) as of the end of the second quarter — yet its stock has fallen more than 10% over the past month. The company said its business competitiveness, cash-generating power, and mid-to-long-term growth potential aren't fully reflected in the current share price, prompting it to move up a shareholder-return plan that was already in the works.

Still, some investors see room for more. Rivals in next-generation memory, U.S.-based Micron and SanDisk, have pledged to return all leftover cash — after operations and capital spending — to shareholders, making SK Hynix's move look comparatively modest by contrast. But with the exact dividend figures still unannounced, analysts say the full scope of the shareholder-return package will hinge on what the company reveals later this year.

In Korea right nowDomestic investors are largely reading the move as a signal meant to defend the stock price. Despite record-breaking earnings, shares have wobbled recently, and the company's unusually large buyback is being interpreted as a direct pushback against the idea that SK Hynix is undervalued. Still, with the dividend details yet to be finalized, some analysts are urging caution until the follow-up announcement lands with third-quarter earnings.

FAQ

What does it mean to "cancel" treasury shares?

It means the company permanently retires shares it bought back from the market, shrinking the total number of shares outstanding — which effectively raises the value of each remaining share.

Why announce such a large buyback now?

SK Hynix said that despite strong earnings and cash generation, its stock has dropped sharply over the past month, so it decided to move up a shareholder-return plan that was already in the pipeline.

What happens with dividends going forward?

The exact size and structure of the cash dividend haven't been finalized. SK Hynix says it will share details when it reports third-quarter (July–September) earnings.