SK Hynix Boosts Shareholder Returns Amid AI Boom

SK Hynix announced a substantial 40 trillion won ($29 billion) treasury share buyback and cancellation plan. The memory chipmaker will also allocate over 50% of its free cash flow from 2025 to 2027 toward shareholder returns. This policy expansion aims to distribute capital through buybacks, cancellations, and dividends.

The company's proactive shareholder return strategy follows significant pressure from investors. Following record profits driven by the AI chip demand, both SK Hynix and Samsung Electronics have been urged to return more excess cash. This plan builds upon SK Hynix's previous commitment to shareholder returns.

SK Hynix's ADRs saw a 6% rise in premarket trading following the announcement. This comes after a recent period of volatility, with shares declining amid a broader tech sell-off. The company's US listing in June aimed to broaden investor access, with ADRs trading at a premium to Korean shares.