EL7.AI
StocksMedium•2 November 2026•
4 min read

SK Square Plans to Return More Than 60% of Dividend Income Through 2028

Key Facts

1SK Square plans to return more than 60% of recurring dividend income through 2028, compared with a previous minimum of 30%.
2SK hynix's third-quarter dividend was 20,000 won per share, including a 10,000 won special dividend linked to gains from Kioxia.
3SK hynix is targeting shareholder returns of about 100 trillion won during fiscal year 2026.
4SK hynix expects memory demand to continue exceeding supply through 2030.

SK Square plans to return more than 60% of recurring dividend income to shareholders through 2028, raising the target from its existing policy for 2026–2028. The current policy targeted returning at least 30% of that income, along with part of investment proceeds, according to press coverage. The announcement comes as the company expects to receive substantial dividend income from SK hynix, which in turn announced a special dividend linked to gains from its investment in Kioxia. SK Square said it plans to return all special dividend income related to the Kioxia investment announced by SK hynix. Details of the new plan, however, will await completion of procedures following confirmation of the 2026 financial statements.

SK hynix's third-quarter cash dividend separates a component reflecting improved earnings from a special component tied to Kioxia gains. The dividend was 20,000 won per share, including 10,000 won tied to improved earnings and a 10,000 won special dividend, the company said. SK hynix said the special dividend "shares the gains from the Kioxia investment" with shareholders. SK Square's plan to return the special income is therefore linked to dividend flows generated by its subsidiary's investment, while recurring income remains the basis for the target ratio through 2028. The company did not combine the special component with its existing policy for returning recurring income.

The move follows strong results at SK hynix, which attributed its record quarterly performance to growing demand for AI memory and the competitiveness of its high-value products. The company cited higher sales of DDR5 for servers and the start of HBM4 shipments, in a market where it said prices for key products had risen as demand for AI memory increased. It also forecast that demand would continue to exceed supply through 2030, citing the difficulty of advanced manufacturing technologies and the time required to build new production facilities. For shareholder returns, SK hynix is targeting returns of about 100 trillion won during fiscal year 2026. Its plan includes cash dividends of at least 30 trillion won, as well as share buybacks and cancellations worth at least 60 trillion won.

The distribution plan is part of SK Square's efforts to enhance shareholder value and reduce its net asset value discount. In a letter to shareholders, the company's chairman said it would continue to implement its returns policy regularly, aiming to reduce the discount to below 30% by 2028 while continuing new investments. In August, it reported consolidated operating profit of 19.2354 trillion won and net profit of 18.675 trillion won in the second quarter of 2026, attributing the results to its focus on AI and semiconductors and SK hynix's strong earnings. Its market capitalization stood at 145 trillion won at the close on August 13, 2026, compared with about 24 trillion won at the end of the second quarter of 2025, while its net asset value discount fell to 38% from 50.1%. On capital returns, the company said it cancelled shares it had repurchased for 40 billion won in July and planned to repurchase and cancel an additional 70 billion won worth of shares by early 2027.

SK Square's shareholder returns as a share of dividend income rose from 30.7% in 2023 to 56.5% in 2024 and then 56.6% in 2025, according to investor relations data. These figures provide context for the new target, which raises the ratio to more than 60% of recurring income through 2028, while part of investment proceeds remains covered by the existing policy. The company also links implementation of its plan to its stated goal for the net asset value discount, while the new implementation mechanism remains subject to completion of procedures following confirmation of the 2026 statements. This comes as SK hynix expects strong memory demand to continue exceeding supply through 2030. The next step related to SK Square's plan is due after completion of procedures following confirmation of its 2026 financial statements.