SK Hynix Completes 40 Trillion Won Share Buyback Ahead of Schedule
Key Facts
SK Hynix completed purchases under a 40 trillion won share buyback program on October 21, 2026, about a month ahead of the original deadline, according to SBS. The program was scheduled to run from August 20 to November 19, but the company finished buying early. The company approved the program to repurchase and cancel all the shares, according to its original announcement, which linked the decision to the stock's market valuation. It said its intrinsic value was "not fully reflected in its current share price," setting out its stated rationale for allocating funds to the buyback. The completion of the purchases is part of this plan, which combines share repurchases with the intention to cancel them.
When announcing the program in August 2026, SK Hynix estimated it would buy about 24.07 million shares. That estimated number represented about 3.3% of the company's issued shares, according to the announcement, defining the scope of the repurchase and cancellation plan when it was approved. The decision was supported by a financial position that included net cash of about 69 trillion won at the end of the second quarter, according to the company when it unveiled the program. Alongside the buyback, it announced plans to raise its shareholder return target tied to cumulative free cash flow, revising the threshold under its previous policy. The company framed the proposed change as a shift from returns of "within 50% of cumulative free cash flow" to "more than 50%," placing the share program within a broader push to increase funds allocated to shareholders.
Samsung Electronics, meanwhile, completed its purchases on October 6 under a program whose original disclosure set the value of ordinary share purchases at 14,999,999,992,000 won, or about 15 trillion won. The scheduled execution period ran from August 24 to November 21, 2026, but the company completed the purchases in October. Samsung said the program's purpose was to provide shares for employee compensation, with the repurchased shares held as treasury stock for use in incentive programs. It said in its disclosure that the shares would be held "for use in share-based compensation programs," a purpose that differs from SK Hynix's announced cancellation plan. For comparison with Samsung's earlier transactions during 2026, the company disclosed the purchase of 36,671,401 ordinary shares at a total cost of 7,174,300 million won under a previous program.
In the Korean market, the Kospi index rose 3.29% in the October 21, 2026 session to close at 5,735.66 points, according to Investing data. The session coincided with the completion of SK Hynix's purchases, while Samsung had finished its purchases earlier in the month. Beyond the employee share program, Samsung estimates its planned shareholder returns during 2026 at between 90 and 110 trillion won, according to its official announcement. The plan includes distributing about 30 trillion won in cash in the third quarter, including regular dividends for that quarter. The plan places cash dividends among the company's announced commitments to shareholders during the year, alongside the share purchases it disclosed.
Samsung plans to determine the details of its third-quarter dividends at a board meeting in late October 2026, according to the company's disclosure. The size and implementation plan for the remaining shareholder returns are scheduled to be finalized at a board meeting in late January 2027, after the financial year closes. Before then, SK Hynix will hold its third-quarter earnings conference on October 28, 2026, at 09:00 a.m. Seoul time, according to its filing with the U.S. Securities and Exchange Commission. Samsung will announce its third-quarter financial results the following day, October 29, 2026, through a conference call starting at 10:00 a.m. Korea time. Earnings announcements and meetings to determine dividends will thus follow the completion of the purchases, with the final decision on Samsung's remaining returns still tied to the January meeting.