SK hynix will repurchase and cancel 40 trillion won ($28.7 billion) of its own shares. This program marks the largest share buyback in South Korean history. The repurchase is scheduled to run from August 20 to November 19.
The memory chip giant also increased its shareholder return pledge for 2025 through 2027. It committed to allocating more than 50% of its cumulative free cash flow to investors during that period.
SK hynix shares surged as much as 13% in Seoul trading on August 20. The rally followed the company's announcement made after markets closed on August 19. Analysts say the move signals confidence in cash generation driven by booming AI memory demand.