SK hynix shares surge after 40 trillion won buyback and cancellation

SK hynix shares jumped after the company announced a 40.0434 trillion won ($28 billion) program to buy back and cancel 24.07 million common shares, the largest such action by a listed South Korean company. The move also renewed attention on actress Chun Won-joo, 86, who is said to have bought shares at around 20,000 won in 2011 and held them ever since. Based on a closing price of 1.73 million won, that would represent about 86 times the purchase price, or an estimated return of roughly 8,500%, although her exact purchase price and holdings are undisclosed. Analysts say the more significant change is SK hynix's decision to raise its shareholder-return benchmark from within 50% of cumulative free cash flow (cash generated after capital spending) for 2025 to 2027 to 50% or more. With cumulative free cash flow estimated at about 491 trillion won, the potential shareholder-return pool could exceed 245 trillion won. The company will buy the shares over three months, a move analysts expect to support the stock by reducing supply and providing rebound momentum.

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