SK hynix to Detail Shareholder Returns Alongside Third-Quarter Results
SK hynix said it would announce additional shareholder-return measures with its third-quarter results after a report that it was considering a special dividend funded by gains on its Kioxia stake. The company’s official plan already includes a 40 trillion won share repurchase and cancellation and a target of returning more than half of cumulative free cash flow from 2025 to 2027.
SK hynix to Detail Shareholder Returns Alongside Third-Quarter Results
SK hynix said it would announce shareholder-return measures when it released third-quarter results on October 28, after a South Korean newspaper reported that the memory-chip maker was considering a special dividend of about 16 trillion won. Reuters reported that the possible payment could be funded by gains from the sale of SK hynix’s stake in Japan’s Kioxia.
The special-dividend figure was reported by Dong-A Ilbo, not confirmed by SK hynix. In a response to the stock exchange operator, the company said it was reviewing several shareholder-return measures and would disclose them with its quarterly earnings. It did not give details.
What is already approved
SK hynix’s official August announcement says its board approved a 40 trillion won repurchase of the company’s own shares, with the shares to be cancelled after acquisition. The company said the programme represented about 3.3% of issued shares based on the reference price it cited. It also raised its target to return more than 50% of cumulative free cash flow generated during 2025-2027, using a combination of buybacks, cancellations and cash dividends.
That existing programme is different from the special dividend under discussion. The August announcement said additional payouts, including special dividends, remained options subject to cash flow, market conditions and distributable profits, with specific details to follow board approval at the third-quarter results.
Why investors are watching
The debate comes as demand for high-bandwidth memory and other AI-related chips has lifted profits at major suppliers. Reuters said investors have pressed SK hynix and Samsung Electronics to return more cash, especially after semiconductor shares fell from June peaks amid questions about how durable technology companies’ AI spending will be.
The official earnings invitation confirms the October 28 release and conference call in Seoul time. Until that release, the size and form of any new payout remain unconfirmed. The reports also did not establish SK hynix’s final accounting treatment for the Kioxia stake sale or a confirmed amount of investment gain.
Sources
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