SK Hynix will repurchase and cancel 40 trillion won ($29 billion) of its own shares. This transaction marks the largest buyback in South Korean corporate history. The company will acquire up to 24 million treasury shares between August 20 and November 19.
Management initiated the buyback because current stock prices do not reflect the company's intrinsic value. This decision follows record financial performance fueled by SK Hynix's leadership in AI memory. The move aims to calm investor fears regarding the sustainability of artificial intelligence spending.
The chipmaker also increased its shareholder return pledge for the 2025-2027 period. SK Hynix now commits to returning more than 50% of its free cash flow to shareholders.