Korean media: SK Hynix plans to launch a 100 trillion won shareholder return program after its U.S. stock market listing.

SK Hynix's aggressive posture in the capital market is grounded in a long-term framework for shareholder returns. According to a report on the 16th by Korea Economic Daily, one of South Korea's most influential financial media outlets, SK Hynix plans to launch a shareholder return plan of up to 100 trillion won (approximately $66.4 billion) in scale during the fourth quarter this year after completing its U.S. American Depository Receipts (ADR) listing. The plan includes stock buybacks and cancellations as well as cash dividends. Meanwhile, the funds raised through the issuance of new shares are planned to be used specifically for artificial intelligence infrastructure construction. Investment bankers revealed to the media that SK Hynix has recently received positive feedback from global institutional investors during its roadshows. The company is expected to officially announce the plan after the ADR listing is completed and around the time its third-quarter results are released. Market analysis believes this move is a key strategic layout by SK Group Chairman Chey Tae-won to strengthen the company’s position in the market through a massive shareholder return policy, as the global capital market revalues the company. New Share Issuance and Buybacks in Parallel: Slightly Increasing Control Proportion According to investment banks and semiconductor industry sources quoted by Korea Economic Daily, the planned stock buyback is expected to amount to just over 2% of the company’s total shares outstanding. According to a previous article by Wallstreetcn, SK Hynix secretly submitted its listing application to the U.S. Securities and Exchange Commission (SEC) in March. According to Reuters, the SEC may approve its ADR listing application during the week of June 22, with the listing set for Nasdaq and possibly completed as early as August. The funds raised through new share issuance are primarily planned for artificial intelligence infrastructure projects such as the construction of the Yongin semiconductor industrial cluster in Korea, with the total cost estimated at up to 600 trillion won. Notably, in terms of control, the simultaneous advancement of stock buybacks and new share issuance is expected to allow Chey Tae-won, through his holding company SK Square, to increase his actual control proportion in SK Hynix from the current 20.5% slightly up to about 21%, thus partly offsetting the share dilution caused by the new share issuance. Strong AI Demand Drives Market Consensus Supporting Capital Operations What underpins the large-scale capital operations is the market’s high expectation for SK Hynix's performance in the second half of the year. The market expects SK Hynix's annual operating profit in 2025 to exceed 25 trillion won, which may set a historic record. The report points out that the company’s dominance in the high-bandwidth memory (HBM) market makes achieving its highest ever operating profit and free cash flow almost a certainty. As a core supplier to Nvidia, SK Hynix holds a leading position in the market for HBM chips needed for AI servers. According to Reuters, SK Hynix has received "extremely positive" market feedback while advancing its U.S. listing, driven by strong AI demand and its competitive advantage in the memory chip market. SK Hynix’s share price has increased by approximately 252% so far this year, and its market value surpassed 1,000 trillion won in May. As of the 16th’s close, its market value reached 1,697 trillion won, achieving a leap from approximately 200 trillion won a year ago. Risk Warning and Disclaimer The market is risky, and investment requires caution. This article does not constitute individual investment advice, nor does it take into account the specific investment goals, financial situations, or needs of individual users. Users should consider whether any opinions, viewpoints, or conclusions herein fit their own specific circumstances. Investing based on this information is at your own risk.