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      SK Hynix Announces $29 Billion Share Buyback Amid Stock Decline

      SK Hynix has unveiled a significant share buyback program valued at approximately 40 trillion won, or $28.6 billion, marking the largest treasury share cancellation in South Korean corporate history. The initiative aims to repurchase around 24.07 million shares, which constitutes about 3.3% of the company's total issued shares. The buyback is set to commence on August 20 and will continue until November 19, 2026.

      The decision comes in response to a nearly 50% drop in SK Hynix's stock price since its peak in June 2026, a decline the company attributes to market misperceptions regarding its financial health. This announcement follows a successful Nasdaq listing in July 2026, which raised approximately $26.5 billion for the company. SK Hynix has emphasized its strong business competitiveness and cash generation capabilities, particularly in the AI memory market, as justification for the buyback.

      In addition to the buyback, SK Hynix has committed to returning over 50% of its cumulative free cash flow generated from 2025 to 2027 through various means, including share cancellations and dividends. Following the announcement, SK Hynix shares and American Depositary Receipts saw an increase of 6-9%.

      The move is seen as part of a broader shift in corporate governance among Korean firms, which have historically offered lower shareholder returns compared to their American and European counterparts. This aggressive buyback strategy may put pressure on other major players, such as Samsung Electronics, to adopt similar capital return policies in response to investor expectations.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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