SK Hynix to repay $28.6B to investors

South Korean company SK Hynix announced a plan to repurchase and cancel shares worth $28.6 billion (40 trillion won), marking one of the largest capital return schemes in the semiconductor sector. The goal is to support the stock's value and generate returns for shareholders. The company intends to allocate more than 50% of its free cash flow between 2025 and 2027 for this purpose, with a continued focus on dividend distributions and increased returns. This comes despite record profits driven by strong demand for memory chips used in artificial intelligence. The plan also responds to increasing pressure from investors to convert profits into direct distributions and returns, amid expectations that the company's market value does not fully reflect its economic potential. SK Hynix's substantial cash reserves—up to 69 trillion won—highlight its strong cash flow and ongoing expansion in the advanced memory chip market.

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