SK Hynix shares surge 11% after announcing $28.7B share buyback

Shares of South Korean chipmaker SK Hynix surged around 11% in Seoul on Thursday after the company announced a 40 trillion won ($28.7 billion) share buyback and cancellation program.

The company’s board approved the repurchase and full cancellation of approximately 24.07 million shares, equivalent to around 3.3% of its total issued shares, according to an official statement.

The repurchase will take place over approximately three months beginning Thursday, with all acquired shares set to be canceled after the transaction is completed.

SK Hynix said the decision reflected its assessment that its business competitiveness, cash-generation capacity, and medium- to long-term growth potential were not fully reflected in its share price.

The company described the program as the largest treasury-share cancellation ever undertaken by a South Korean listed company.

SK Hynix also raised its shareholder return target from “within 50%” to “over 50%” of cumulative free cash flow generated between 2025 and 2027.

The expanded policy will combine share repurchases and cancellations with cash dividends, while fixed and special dividends are also under consideration.

The chipmaker’s net cash stood at approximately $49.5 billion at the end of the second quarter, supported by strong demand for advanced memory chips used in artificial intelligence infrastructure.

Other South Korean technology stocks also advanced, with Samsung Electronics gaining over 8% and Kakao rising more than 3.6%.