SK hynix will repurchase and cancel 40 trillion won ($29 billion) of its own shares. This transaction represents the largest share buyback in South Korean corporate history. The company’s board approved the plan on August 19, 2026. The buyback program will execute between August 20 and November 19.
Management stated the current stock price does not reflect the company's intrinsic value in the AI memory sector. SK hynix also introduced a new shareholder return policy covering 2025 through 2027. The company pledged to return over 50% of its cumulative free cash flow to investors. This capital strategy seeks to bolster confidence amid concerns regarding the sustainability of the AI investment boom.
U.S.-listed American Depositary Receipts (ADRs) rose over 7% in pre-market trading following the news. The announcement improved market sentiment for the broader memory chip industry. Analysts suggest the buyback signals management's conviction that the memory upcycle will continue.