SK Hynix Unveils $28.6 Billion Share Buyback

SK Hynix will buy back and cancel up to 40 trillion won ($28.61 billion) in treasury shares and allocate more than 50% of its free cash flow from 2025–2027 toward shareholder returns. The move comes amid growing investor pressure on South Korea’s leading AI-memory chipmakers to distribute more of their record profits.

The company plans to repurchase up to 24 million shares between August 20 and November 19. SK Hynix said it will also expand its shareholder-return programme through additional buybacks, cancellations and dividends, with further details expected alongside its third-quarter results.

The announcement follows a sharp decline in SK Hynix shares, which fell nearly 10% on Wednesday after reaching record highs in June. Investors have been concerned about the sustainability of AI-related spending, even as demand for high-bandwidth memory remains strong. The company must balance substantial shareholder payouts with aggressive investment in new chip factories and employee compensation.

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