SK Hynix Targets Nearly 100 Trillion Won in Shareholder Returns as Seoul Shares Jump 10.89%
Key Facts
SK Hynix said it is targeting nearly 100 trillion won in shareholder returns during fiscal 2026, and its shares jumped 10.89% to 1,487,000 won at the close of the Seoul session on October 28. The company said total returns will include at least 30 trillion won in cash dividends and at least 60 trillion won in share buybacks and cancellations. Samsung Electronics shares rose 9.01% to 242,000 won in the same session, according to data cited by SBS News. The plan was announced on the day SK Hynix reported third-quarter results, with quarterly revenue topping 100 trillion won for the first time. The market moves reflect both the plan to return capital to shareholders and record earnings supported by demand for AI memory.
The company detailed its board decisions on October 28, approving a cash dividend of 14 trillion won for the third quarter, alongside a 20 trillion won share buyback. SK Hynix will cancel all of the shares bought and allocated for shareholder returns, worth 10 trillion won, while using another roughly 10 trillion won to compensate employees. The company said the total annual buyback and cancellation plan includes the 40 trillion won transaction announced in August, which was completed the previous week. These items show that the headline total for returns is not limited to buybacks, but combines cash dividends with shares to be bought and canceled. The company is also returning gains from its investment in Kioxia to shareholders through special dividends.
SK Hynix reported third-quarter revenue of 104.6155 trillion won, operating profit of 83.3338 trillion won and net profit of 39.7756 trillion won. Revenue rose 32% and operating profit 38% from the previous quarter, the company said. It said growing demand for AI memory lifted prices for key products, with sales of server DDR5 growing and HBM4 shipments beginning on a serious scale. High-value products supported results, the company added, and operating profit was about seven times what it was a year earlier, exceeding market estimates, according to the Associated Press. Quarterly revenue topping 100 trillion won made this the first quarter of its kind in the company's history.
The gains in Seoul coincided with a strong rally in early trading, with the Associated Press reporting that SK Hynix shares rose 11.4% and Samsung Electronics shares 9.1% early in the October 28 session. At the close of regular trading, the shares were up 10.89% and 9.01%, respectively, according to SBS News. Lee Kyung-min, an analyst at Daishin Securities, said large shareholder returns could provide stronger support for prices during downturns and momentum for a recovery by reducing pressure from share supply. He said the flow of shares allocated for returns could improve the market's supply-demand balance. This is the analyst's view of the plan's effect on share movements, while the closing prices reflect the gains actually recorded in the Seoul session.
Across the sector, SK Hynix said it expects demand to continue outstripping supply in memory markets through 2030, citing the difficulty of keeping pace with advanced technology processes and the time needed to build production facilities. The company said it has signed long-term supply agreements with 14 major customers, including global cloud computing companies, covering more than 50% of its production capacity for 2027 and 2028. It expects HBM4 to become its main product starting in the fourth quarter, and to surpass HBM3E in shipment volume and revenue during that quarter. It also plans to expand production capacity and strengthen product competitiveness to increase revenue and profit next year, with investment expected to rise markedly. The expansion is tied to the full-scale start of operations at Yongin's first phase and an acceleration of domestic and overseas infrastructure investment.
Samsung Electronics is scheduled to announce detailed third-quarter results on October 29, with its conference call set to begin at 10 a.m. Korea time. The announcement comes a day after its shares rose in Seoul, while the detailed results due remain another factor in tracking the performance of Korean chipmakers. In EL7 data dated October 27, the close for the stock listed under ticker SKHY was 145.36, while SMSN.L closed at 4288. These prices are for the October 27 session, whereas the percentage gains and won-denominated closing prices above refer to Seoul trading on October 28. The different dates and markets are essential to reading each set of figures in context.