SK Hynix Completes 40 Trillion Won Share Buyback Early
Key Facts
SK Hynix completed a share buyback program with a planned value of 40 trillion won on October 21, 2026, about a month ahead of its original deadline, Chosun Biz reported, citing the company. The completion comes ahead of third-quarter results and amid earlier warnings about the impact of corporate purchases ending on demand in the Korean stock market. The company said in August that the program's planned value was equivalent to about 24.07 million shares, based on the closing price preceding the board's decision. The targeted shares represented about 3.3% of the company's total issued shares, according to its official buyback statement. The number of shares corresponding to the announced value was an estimate when the plan was drawn up, tied to the price used in the calculation. The company said in its program announcement that "the total planned amount for share repurchases is 40 trillion won."
The buyback is part of a broader shareholder return policy under which the company raised its target to more than 50% of cumulative free cash flow generated during the 2025–2027 program. The target covers cash flows accumulated over the program's duration, according to the company's stated wording, while its net cash stood at about 69 trillion won at the end of the second quarter of 2026. On the business front, SK Hynix said second-quarter revenue rose 257% from the same period a year earlier. Operating profit grew 557% year on year, outpacing revenue growth over the same period. During the quarter, the company began commercial volume shipments of fourth-generation high-bandwidth memory chips, according to its earnings statement. The period's results combine revenue and profit growth and the start of shipments, alongside the cash balance the company reported as part of the backdrop to its buyback plan.
In trading on Wednesday, October 21, SK Hynix shares rose 5.9% to 1,294,500 won, according to Investing.com's report on the session. The gain coincided with the day Chosun Biz said the company completed its buyback. Goldman Sachs analyst Chris Cha had warned in an earlier report published by the website in September that support from corporate purchases for the market was coming to an end. Cha linked the Kospi's trajectory after that support expired to buying by foreign institutions, with retail investor funds shifting into cryptocurrencies, according to the report. He said "the Kospi's trajectory will depend entirely on purchases by foreign institutions" after corporate support ends. That assessment concerned sources of demand for Korean equities after buyback programs expired, while SK Hynix's program was completed ahead of its original schedule.
The company's importance in the global memory sector is significant: SK Hynix and Samsung together produce about two-thirds of the world's memory chips, according to an Associated Press report published in July 2026. The report noted analysts' concerns about the viability of massive spending on chip facilities and data centers. The question it cited centered on "whether this enormous spending will ultimately generate sufficient returns." Those concerns include returns on investment in chip production facilities as well as data centers attracting spending tied to artificial intelligence. Under SK Hynix's expansion plans, the company aims to open the cleanroom at its M17 plant in December 2028. It also targets opening the cleanroom at its Yongin Y2 plant in June 2029, according to its announcement on investment in manufacturing facilities.
Ahead of those industrial expansion milestones, the company is scheduled to announce third-quarter results on October 28, 2026, according to the official invitation published by SK Hynix. The announcement follows the completion of the buyback program on October 21 and shifts attention to business performance in the period following the second quarter. The year-on-year comparison in that quarter showed operating profit growing faster than revenue. It also saw the start of commercial volume shipments of fourth-generation high-bandwidth memory chips. The shareholder return policy, meanwhile, spans the 2025–2027 program, targeting more than half of cumulative free cash flow over that period. The company will present its third-quarter 2026 results on Wednesday, October 28, according to the schedule set out in its invitation.