US Stock Market Move | May add shareholder returns of up to KRW60 trillion SK Hynix (SKHY.US) rises about 2%

On Monday, SK Hynix (SKHY.US) rose in early trading, gaining as much as about 3.6% before paring the advance to 2% as of publication, though it is still down 24% for October. On the news front, according to media reports, industry sources said SK Hynix is preparing to announce a new shareholder return plan worth KRW50 trillion to KRW60 trillion (US$35 billion to US$42 billion). Combined with its recently completed KRW40 trillion share buyback and cancellation, the memory chipmaker's total shareholder returns this year will reach a record KRW100 trillion. Benefiting from the AI memory chip boom, the company's earnings are expected to achieve historic growth, and it plans to use large-scale shareholder return measures to push its valuation into the global top tier. Industry sources said on the 26th that SK Hynix will finalize this year's shareholder return plan through a board resolution on the 28th and disclose it that day alongside its third-quarter report. The company's policy is to use more than 50% of free cash flow for share buybacks, cancellation and dividends, and it is currently reviewing a total return scale of KRW90 trillion to KRW100 trillion. Brokerages estimate SK Hynix's free cash flow this year at about KRW200 trillion.