SK hynix (SKHY) readies Won 40T buyback as it maps cash-return plan

Rhea-AI Filing Summary

SK hynix Inc. (SKHY) announced an updated shareholder return policy focused on significant capital returns over the 2025–2027 period. The company plans to return over 50% of cumulative Free Cash Flow to shareholders through a mix of share repurchases, cancellations and cash dividends, including potential expansion of fixed and special dividends. As an early return, SK hynix intends to acquire and cancel approximately Won 40 trillion of treasury shares, citing its view that the current share price is undervalued relative to intrinsic value and aiming at efficient capital reallocation and enhanced shareholder value. The company expects to continue treasury share acquisition and cancellation during the policy period, subject to cash flow, market conditions and distributable profits, with more detailed scale and method to be set by the board and disclosed with third-quarter earnings.

Positive

• Over 50% of cumulative Free Cash Flow for 2025–2027 is targeted to be returned to shareholders via dividends and share repurchases, signaling a strong commitment to capital return.
• SK hynix plans to acquire and cancel approximately Won 40 trillion of treasury shares as an early shareholder return, which reduces share count and may enhance per-share value.

Negative

• None.

Key Figures

Shareholder return target: Over 50% of cumulative Free Cash Flow Treasury share acquisition and cancellation: Approximately Won 40 trillion Policy period: 2025 to 2027 +1 more

4 metrics

Shareholder return target Over 50% of cumulative Free Cash Flow Planned return to shareholders for the 2025–2027 policy period

Treasury share acquisition and cancellation Approximately Won 40 trillion Early return to shareholders via acquisition and cancellation of treasury shares

Policy period 2025 to 2027 Timeframe for shareholder return policy tied to cumulative Free Cash Flow

Disclosure date August 19, 2026 Expected time and date of provision of the shareholder return policy information

Key Terms

Free Cash Flow, treasury shares, special dividends, distributable profits

4 terms

Free Cash Flow financial

"plans to return over 50% of cumulative Free Cash Flow to its shareholders"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

treasury shares financial

"decided to acquire and cancel treasury shares in the amount of approximately Won 40 trillion"

Treasury shares are a company’s own stock that it has repurchased and keeps on its books instead of canceling or leaving in the hands of outside investors. Think of them like coupons a business puts back in a drawer: they don’t vote or receive dividends while held, but they can be reissued later for employee pay or fundraising. For investors this matters because buybacks change the number of shares that count toward earnings and ownership, can boost per‑share metrics, and use corporate cash that might otherwise go to growth or dividends.

special dividends financial

"reviewing an expansion of dividends, including existing fixed dividends and special dividends"

A special dividend is a one-time payment made by a company to its shareholders, often when the company has extra cash from a big sale or unexpected profit. It’s like a bonus share of the company’s success, giving investors a quick reward outside of regular dividend payments. This can signal the company’s strong financial position or a desire to distribute excess profits.

distributable profits financial

"taking into account cash flow, market conditions and distributable profits"

FAQ

What is SKHY’s shareholder return target under the new policy for 2025–2027?

SK hynix plans to return over 50% of cumulative Free Cash Flow generated from 2025–2027 to shareholders. This will be executed through a combination of share repurchases, share cancellations and cash dividends, including potential increases to fixed and special dividends.

How large is the planned treasury share buyback and cancellation by SKHY?

SK hynix has decided to acquire and cancel approximately Won 40 trillion of treasury shares as an early return to shareholders. The company views its current share price as undervalued and aims to improve capital efficiency and enhance shareholder value through this action.

How will SKHY decide on further shareholder returns during the policy period?

Additional returns, including dividend levels and further treasury share acquisitions, will be determined by SK hynix’s board. Decisions will consider cash flow, market conditions and distributable profits, with specific details to be announced alongside the third-quarter earnings release.

Does SKHY plan to increase dividends as part of this shareholder return policy?

Yes. SK hynix is reviewing an expansion of dividends, covering both existing fixed dividends and potential special dividends. Final decisions on the scale and methods of dividend increases will be made by the board and disclosed with the third-quarter earnings announcement.

Why is SKHY undertaking such a large buyback and cancellation of shares?

SK hynix states it views its recent share price as undervalued relative to intrinsic value. The approximately Won 40 trillion treasury share acquisition and cancellation is intended to reallocate capital efficiently and enhance shareholder value within its broader shareholder return framework.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Form 6-K: How Foreign Companies Report to the SEC →

Available on EDGAR 08/19/2026 - 07:19 AM Accepted by SEC EDGAR 08/19/2026 - 07:19 AM Learn about SEC filing dates

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF AUGUST 2026

Commission File Number: 001-43391

SK hynix Inc.

(Translation of registrant’s name into English)

2091, Gyeongchung-daero

Bubal-eup, Icheon-si

Gyeonggi-do 17336, Korea

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☒   Form 40-F ☐

Shareholder Return Policy of SK hynix Inc. (the “Company”) (Fair Disclosure)

1. Information		Title		Shareholder Return Policy
		Details		- The Company’s current shareholder return policy is premised on achieving financial soundness targets, and the Company believes that progress toward those targets is proceeding as planned. - For the policy period (2025 to 2027), the Company plans to return over 50% of cumulative Free Cash Flow to its shareholders. • The Company will pursue both the acquisition and cancellation of treasury shares and cash dividends in order to improve shareholder value. • The Company is also reviewing an expansion of dividends, including existing fixed dividends and special dividends. - In light of the Company’s meaningful generation of Free Cash Flow, the Company has decided to implement an early return to shareholders. • The Company considers its recent share price to be undervalued relative to the Company’s intrinsic value and has therefore decided to acquire and cancel treasury shares in the amount of approximately Won 40 trillion in order to achieve efficient capital reallocation and enhance shareholder value. • Going forward, the Company plans to continue to acquire and cancel treasury shares during the policy period, taking into account cash flow, market conditions and distributable profits. • Further details on additional returns to shareholders, including the specific scale and methods of dividends and acquisitions of treasury shares, will be determined through resolutions of the board of directors of the Company and announced at the time of the third quarter earnings announcement.
		Expected Time of Disclosure		—
2. Provision of Information		Provider		Investor Relations, SK hynix
		Target Audience		Shareholders and investors, media press, etc.
		Expected Time and Date of Provision		August 19, 2026
		Name of Event (Location)		—
3. Point of Contact (Department/Telephone Number)				Investor Relations, SK hynix (+82-31-5185-4114)

Cautionary Statement Regarding Forward-Looking Statements

The material above contains forward-looking statements. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or performance to be materially different from any future results or performance expressed or implied by such forward-looking statements. We do not make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. Additional information concerning these and other risk factors are contained in our latest annual report on Form 20-F and in our other filings with the U.S. Securities and Exchange Commission.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

SK hynix Inc.
(Registrant)
By:		/s/ Seonghwan Park
(Signature)
Name: Seonghwan Park
Title: Head of Investor Relations

Date: August 19, 2026