SK Hynix Weighs 16 Trillion Won Special Distribution, Says No Decision Has Been Made
Key Facts
SK Hynix shares rose as much as 3% during the morning of October 26 after the Dong-A Ilbo newspaper reported that the company was considering a special distribution of about 16 trillion won, equivalent to $12 billion, from gains on the sale of its stake in Kioxia. SK Hynix said in an official disclosure that no action had been finalized as of that date. The company said it plans to announce additional shareholder-return measures alongside its third-quarter results, subject to board approval. The disclosure framed the newspaper report as a possibility under consideration, not an approved distribution plan. Markets are awaiting the company’s scheduled announcement on October 28 to see whether it will include details on shareholder returns.
The Dong-A Ilbo report, carried by Reuters, attributed the potential distribution to gains from SK Hynix’s sale of its stake in Kioxia. The company did not disclose details of the stake sale or the size of the gains in its official filing, so it did not confirm the funding source or the distribution value cited in the report. Shares rose in morning trading before later paring their gains, according to coverage published that day. A fund manager, quoted by Bloomberg, said the prospect of a distribution offered short-term support for the stock but was not enough to trigger a sustained rally. Available data did not establish that the stock had reached a two-week high.
The potential distribution comes under a broader shareholder-return program SK Hynix announced in August. The company said it aims to return more than 50% of cumulative free cash flow generated during 2025–2027 through share buybacks and cancellations, as well as cash dividends. On August 19, the board approved a 40 trillion won treasury-share buyback and its full cancellation. The program sets out a stated framework for shareholder returns, but does not establish that the special distribution reported by the newspaper has been approved. The company said any additional measures would be subject to board approval.
The significance of the potential move is underpinned by the company’s strong financial performance in recent periods. SK Hynix generated revenue of about 97.1467 trillion won in 2025 and operating profit of 47.2063 trillion won, while annual revenue increased by more than 30 trillion won from 2024. In the second quarter of 2026, the company reported revenue of 79.3187 trillion won and operating profit of 60.5426 trillion won. The two figures rose 257% and 557% year over year, respectively. The company said first-half revenue exceeded 100 trillion won for the first time in its history, and attributed its record second-quarter results to growing demand for AI infrastructure and higher prices for high-performance products designed for AI servers.
The results bolstered the company’s available cash, with cash and cash equivalents totaling 88 trillion won at the end of the second quarter, up 33.6 trillion won from the previous quarter. Over the same period, total debt fell 0.7 trillion won to 18.6 trillion won. SK Hynix said it had signed long-term supply agreements with about 10 customers and was continuing talks with major customers to ensure stable supply over the medium and long term. Separately, the company said Solidigm had paused its review of pre-IPO financing and public offering plans after assessing capital-market volatility and a broader correction in semiconductor stocks. It said Solidigm continues to evaluate alternatives for financing its growth.
SK Hynix is scheduled to release its third-quarter results before 9:00 a.m. Seoul time on October 28, followed by an investor call at 9:00 a.m. The company said it would announce additional shareholder-return measures at that time if they receive board approval. The announcement will be the first stated opportunity to clarify whether the company will take new steps beyond the buyback and cancellation program approved in August. The third-quarter results come as markets expect more details on the company’s performance following record first-half figures. The 16 trillion won special distribution remains a possibility attributed to the newspaper report until the company announces an official decision.