SK Hynix launches record $28.6 billion share buyback and cancellation plan

Published Aug 19, 12:12 PM UTC

SK Hynix announced a 40 trillion won ($28.6 billion) share repurchase and cancellation plan, the largest treasury share cancellation in South Korean listed company history. The board approved buying back about 24.07 million shares (3.3% of total outstanding) from August 20 to November 19, 2026, with all shares to be canceled. The company also plans to raise its shareholder return commitment for 2025-2027 from a ceiling of 50% of cumulative free cash flow to a floor exceeding that level, using buybacks, cancellations, and dividends. SK Hynix, a key Nvidia supplier for high-bandwidth memory chips, cited market undervaluation relative to its competitive position and cash generation. Despite the announcement, shares fell 9.75% on Wednesday, though the stock has more than doubled in 2026. The move follows investor pressure to distribute swelling cash holdings from AI-driven memory demand, and comes alongside a 54 trillion won investment in two new fabrication plants in South Korea.