The South Korean memory chip manufacturer SK Hynix, which supplies major tech companies like Nvidia, has announced its plan to launch an ambitious share buyback program totaling 40 trillion won (24.460 billion euros), which will be executed over a period of three months starting from next August 20.
According to the company, the operation will involve the acquisition of about 24.07 million shares of SK Hynix, which is approximately equivalent to 3.3% of the outstanding capital. Once the buyback is completed, all these shares will be canceled, representing "the largest cancellation of treasury shares ever carried out by a listed South Korean company."
At the same time, SK Hynix has outlined its shareholder return strategy for the coming years, in which it plans to return "more than 50% of the accumulated free cash flow (FCF)" generated between 2025 and 2027, through a scheme that combines buybacks and cancellations of shares with cash dividend payments.
"The decision is based on the assessment that the intrinsic value of the company is not fully reflected in the current price of its shares," the company stated in a press release justifying the magnitude of the operation.
In the markets, SK Hynix shares closed Wednesday's session on the Seoul Stock Exchange with a decline of 9.20% and have already accumulated a drop of over 7% so far in 2026.
On the operational front, SK Hynix achieved a historic net profit in the second quarter of 2026, recording earnings of 93.9 trillion won (57.430 billion euros), more than thirteen times higher than in the same period of 2025, representing an increase of 1,242%.