SK Hynix stock surged 6.3% to ₩1,595,000 on Thursday after the company announced a $28.3 billion share repurchase program. The buyback program, which began on Thursday, targets more than 24 million shares over approximately three months through November 19, and will cancel all repurchased shares. According to the company, this buyback is the single largest shareholder return effort in South Korean corporate history.
Share Repurchase Details
The buyback program is part of SK Hynix's plan to return more than 50% of its cumulative free cash flow generated between 2025 and 2027 to shareholders, up from a prior target of up to 50%. The company believes its intrinsic value is not fully reflected in its current stock price, indicating that management views the shares as undervalued.
Market Reaction
The stock's rebound comes after a sharp decline in the previous session, in which SK Hynix shares fell in Seoul trading as the KOSPI plunged as much as 6.8% intraday on August 19, due to concerns over rising global bond yields and their potential impact on AI infrastructure investment.
