SK Hynix Approves Record 40 Trillion Won Buyback and Cancellation After Sharp Stock Selloff

SK Hynix announced on August 19 that its board approved the repurchase and cancellation of 40 trillion won, equivalent to roughly $28.6 billion, in treasury shares, in what the company described as the largest such cancellation in the history of South Korean listed companies. The program covers approximately 24 million shares, equal to about 3.3% of shares outstanding, and runs from August 20 through November 19. Alongside the buyback, SK Hynix raised its shareholder return target to at least 50% of cumulative free cash flow from 2025 through 2027, upgrading a prior commitment of up to 50%, and said it is considering introducing both a fixed dividend and a special dividend to expand payouts further.

The announcement came after SK Hynix shares fell more than 10% in Seoul on August 19 amid a broader global semiconductor selloff that pulled Samsung and SK Hynix down more than 7% and sent the Philadelphia Semiconductor Index down 5%. The company stated that current share prices do not reflect its intrinsic value. In post-market Seoul trading, shares erased losses of up to 8.3%, and SK Hynix's U.S.-listed ADR surged roughly 7% in after-hours and premarket activity, trading near $164.70 in Wednesday morning New York trading.

S&P Global separately upgraded SK Hynix's credit rating to A- citing AI-driven demand strength. The buyback plan follows a pledge SK Hynix made in April 2026 to expand shareholder returns and a signal given on its July 29 earnings call that a full program disclosure was imminent.