SK Hynix launches $72.5 billion shareholder return program

SK Hynix will pursue a shareholder return program worth up to $72.5 billion this year, beginning with a $29 billion share buyback and retirement. The company’s projected operating profit is expected to exceed $181.2 billion, potentially making this year’s shareholder return about seven times last year’s $10.4 billion. Mirae Asset Securities estimates 2025 free cash flow at $130.5 billion; applying SK Hynix’s policy of returning at least 50% of free cash flow implies at least $65.2 billion in cumulative returns. After the confirmed buyback, about $36.2 billion remains as a theoretical amount, although the policy covers cumulative free cash flow from 2025 through 2027 and does not require all of it to be distributed this year. The company is expected to consider higher regular and special dividends after third-quarter earnings, followed by additional share buybacks and retirements as cash accumulates. SK Hynix said on August 19 that it was reviewing dividend increases. Its current fixed annual dividend is $1.09 per share, or $0.27 quarterly. The company withheld new shareholder-return details at its second-quarter earnings announcement because of restrictions during the 25-day prospectus delivery period following its American depositary receipt listing on July 10.

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