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SK Hynix Approves Over $28.4 Billion Buyback Plan, SKHY Surges Over 8% in Overnight Trading

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AuthorJay Qian

Aug 19, 2026 7:37 AM

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SK Hynix announced a historic 40 trillion won stock buyback plan to repurchase and cancel 24.07 million common shares over three months, boosting its ADR by over 8% in overnight trading. Funded by robust AI hardware sector profitability and substantial cash reserves, the move aims to offset equity dilution from a recent US ADR issuance and expand shareholder returns beyond 50% of free cash flow. This initiative aligns with South Korea's "Value-up Program," fueling broader industry expectations for significant medium- to long-term shareholder return policies across the domestic semiconductor sector.

AI-generated summary

TradingKey - SK Hynix (SKHY) announced on August 19 that its board of directors has approved a stock buyback plan worth 40 trillion won (approximately $28.4 billion–$28.6 billion). The company plans to repurchase a total of 24.07 million common shares through the open market over the next three months, aiming to cancel the shares and enhance shareholder returns.

Boosted by the news, SK Hynix ADR surged over 8% in overnight trading, turning from losses to gains. As of press time, the stock was trading at $162.48, up about 4.41%.

skhynix-819-3-a2da260542924e85a09bfa6fbba7fa51

[Source: Futu]

The company stated that the buyback will commence on August 20 and is expected to last for about three months. According to previous disclosures, SK Hynix aims to expand shareholder returns to over 50% of its free cash flow.

This is the largest buyback plan in SK Hynix's history. In July this year, SK Hynix raised approximately $26.5 billion by issuing American Depositary Receipts (ADRs) in the United States. The size of this buyback is comparable, and the market generally believes this move will offset the equity dilution resulting from the ADR issuance.

Supporting this massive buyback is SK Hynix's sustained profitability in the AI hardware sector. According to its Q2 financial report, SK Hynix achieved single-quarter revenue of 79.32 trillion won, an operating profit of 60.54 trillion won, and a net cash flow of up to 69.4 trillion won, maintaining ample cash reserves.

According to The Korea Times, as the South Korean government advances its "Value-up Program," Samsung Electronics is also expected to announce a new round of shareholder return policies in the third quarter. The industry generally estimates that the potential size of combined medium- to long-term shareholder returns from Samsung and Hynix will reach 300 trillion won.

This content was translated using AI and reviewed for clarity. It is for informational purposes only.

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Reviewed byJay Qian

Disclaimer: The content of this article solely represents the author's personal opinions and does not reflect the official stance of Tradingkey. It should not be considered as investment advice. The article is intended for reference purposes only, and readers should not base any investment decisions solely on its content. Tradingkey bears no responsibility for any trading outcomes resulting from reliance on this article. Furthermore, Tradingkey cannot guarantee the accuracy of the article's content. Before making any investment decisions, it is advisable to consult an independent financial advisor to fully understand the associated risks.

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