SK hynix to add 60 trillion won in shareholder returns... Kioxia gains to be returned as special dividend

Shareholder Returns Totaling 100 Trillion Won This Year
30 Trillion Won in Cash Dividends and 60 Trillion Won in Share Buyback Cancellations
Additional 20 Trillion Won Share Buyback

SK hynix plans to return about 100 trillion won to shareholders this year. After announcing a 40 trillion won shareholder return plan in August, it has now unveiled an additional 60 trillion won plan. The company will return most of its gains from its investment in Japan's Kioxia through a special dividend and continue buying back and canceling its own shares.

SK hynix said on October 28 that it plans to return a total of 100 trillion won to shareholders. The company aims to fulfill its commitment to return at least 50% of its free cash flow (FCF).

It said the 40 trillion won share buyback announced in August was completed last week and that the shares will be canceled soon.

The company’s policy is to set the dividend amount based on operating performance, provide additional returns through special dividends when significant investment gains are realized, and continue share buybacks every quarter.

SK hynix headquarters in Icheon, Gyeonggi Province. Yonhap News.

At a board meeting on October 28, the company approved a third-quarter cash dividend of 14 trillion won and a share buyback worth 20 trillion won. It plans to cancel all of the 10 trillion won in shares to be repurchased for shareholder returns. The remaining approximately 10 trillion won will be used for employee compensation and is not included in the shareholder return total.

The third-quarter dividend is 20,000 won per share, comprising a 10,000 won dividend reflecting improved performance and a 10,000 won special dividend to share the gains from its investment in Kioxia. The company decided to return most of the gains realized from its Kioxia investment this year to shareholders.

SK hynix said, "We will continue to deliver stable results based on robust growth in memory demand and our technological competitiveness, and consistently share those results with our shareholders."

This content was produced with the assistance of AI translation services.