SK Hynix: “We Have Not Specifically Considered a 100 Trillion Won Shareholder Return”
“Various options are being considered… The reported scale is not accurate”
Public Disclosure Clarifying Reports on 100 Trillion Won Shareholder Return
Drawing a Line on the Scale of Share Buybacks and Dividends
[Edaily Reporter Shin Young-bin] #SK Hynix has drawn a clear line regarding reports that it is pursuing a shareholder return plan worth up to 100 trillion won, stating that it has not reviewed any specific details.
In a disclosure titled “Clarification Regarding Rumors or Reports” on the 16th, SK Hynix stated, “We are reviewing various shareholder return measures to enhance shareholder value,” but added, “We have not reviewed specific details such as the scale of shareholder returns mentioned in the reports.” SK Hynix headquarters in Icheon, Gyeonggi Province. (Photo = Yonhap News) Previously, The Korea Economic Daily reported that SK Hynix was preparing a massive shareholder return plan worth up to 100 trillion won for the fourth quarter of this year, including share buybacks and cash dividends. The report also suggested that the share buyback alone could reach 40 trillion won, equivalent to 2% of the total shares.
In response, SK Hynix acknowledged that it is reviewing shareholder return measures but clarified that the specific details mentioned in the report, such as the scale and method, are not true.
SK Hynix continues to see improved performance driven by growing demand for artificial intelligence (AI) semiconductors and a boom in high-bandwidth memory (HBM). Employee compensation has also increased significantly on the back of these strong results.
Previously, SK Hynix reportedly paid a performance share (PS) equivalent to 2,964% of base salary based on last year’s earnings. PS is a performance-based bonus system where a portion of operating profit is distributed to employees based on annual performance.
Expectations for performance bonuses based on this year’s results are also growing. SK Hynix is reported to have secured substantial funds for PS by generating massive operating profits in the first quarter of this year alone. As the AI memory boom, led by HBM, continues, market interest in both employee compensation and shareholder returns is simultaneously increasing.
However, the company must also secure funds for large-scale investments. SK Hynix is expanding its capital expenditures and R&D investments to strengthen its competitiveness in AI memory.
Industry observers believe that SK Hynix’s future shareholder return policy will be determined by comprehensively considering factors such as improved performance, investment plans, and financial stability.
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