[Edaily Reporter Kwon Oh Seok ] SK hynix(000660)’s stock price turned lower during the trading session. This appears to have been driven by selling pressure stemming from waning expectations for shareholder returns and the fact that its American Depositary Receipts (ADRs) plummeted 4.97% overnight.

According to MP Doctor on the 7th, SK hynix was trading at 1,428,000 won as of 10:54 a.m., down 4.88% from the previous trading day. Although the stock rose to the 1.54 million won level shortly after the market opened, it subsequently trended downward and turned negative.
The market views the shift in momentum as a result of a wave of sell-offs triggered by SK hynix’s failure to announce a clear plan for shareholder returns. Previously, during a recent conference call, SK hynix announced that it was reviewing measures—such as allocating approximately 50% of its free cash flow (FCF) to shareholder returns—and would disclose a concrete plan by the end of this year.
Nevertheless, many observers assess that this approach remains conservative compared to global semiconductor companies. According to foreign media outlets such as Reuters, SK hynix’s net cash position at the end of this year is projected to reach $99.3 billion (approximately 141 trillion won). Combined with SamsungElectronics, their total net cash stands at a staggering $263 billion (approximately 375 trillion won), which is more than double the expected net cash ($102 billion) of U.S.-based NVIDIA, a leading AI company.
U.S. memory manufacturer Micron announced in June that it would return 100% of its free cash flow to shareholders. Critics point out that this falls short compared to Apple’s 2013 announcement of a large-scale capital return program, under which it pledged to return a total of $100 billion to shareholders by 2015.
Reuters noted, “If companies fail to present aggressive shareholder return plans even while posting record-breaking earnings, it could be interpreted as a sign that management itself is not confident in the sustainability of the AI boom.”
Richard Claude, a portfolio manager at asset management firm Janus Henderson Investors, argued, “SK hynix should increase its shareholder return ratio to at least 80% of free cash flow.”
Meanwhile, on the New York Stock Exchange last night, SK hynix ADRs fell alongside Micron, likely due to high expectations for the memory market acting as a drag. Micron fell 1.3%, while SK hynix ADRs plummeted 4.97%.