[Edaily Reporter Kim Kyung-eun ] SK hynix(000660)is trading higher in early trading after announcing plans to repurchase 40 trillion won worth of its own shares and cancel them in their entirety.

According to MP Doctor on the 20th, SK hynix was trading at 1,604,000 won as of 9:04 a.m. today, up 104,000 won (6.93%) from the previous trading day. This is interpreted as a result of the company’s announcement of its shareholder return plan the previous day, which boosted investor sentiment.

SK hynix announced yesterday that it plans to repurchase 40 trillion won worth of its own shares from today through November 19. Based on the closing price on the 18th, this amounts to approximately 24 million shares, representing 3.6% of the company’s market capitalization as of the closing price on the 19th. Once the buyback is complete, the company plans to cancel all shares within one to two weeks. Since the purpose is to cancel all shares, this is unrelated to securing treasury stock for purposes such as employee bonuses.

The securities industry views this shareholder return initiative as likely to support the stock price on the downside and prompt a reassessment of the company’s valuation. The company’s decision to strengthen its medium- to long-term shareholder return policy was also viewed positively. SK hynix had previously committed to allocating 50% of its cumulative free cash flow (FCF) over the three-year period from 2025 to 2027 toward shareholder returns, but has now raised this target to “at least” 50%.

Lee Jong-wook, an analyst at SamsungSecurities, stated on the same day, “This is SK hynix’s second share buyback and cancellation since the 12.2 trillion won buyback and cancellation at the beginning of the year, making it the largest such transaction among domestic listed companies,” adding, “It is expected to reduce the number of outstanding shares by 3.3%.” He further emphasized, “As the view that a portion of growing profits belongs to investors begins to take hold, this will become a trend where profits drive up stock prices.”

Kim Rok-ho, an analyst at Hana Securities, stated, “SK hynix’s 40 trillion won share buyback is clearly positive from the shareholders’ perspective,” adding, “Since additional shareholder return policies are also expected to be announced, we believe the scale will exceed initial expectations.”

Kim Seon-woo, an analyst at Meritz Securities, also said, “SK hynix’s announcement of its shareholder return plan is quite positive in terms of the key principles of shareholder returns—‘timing, perception, and expectations.’”

At the same time, SamsungElectronics(005930)is trading at 254,000 won, up 7,000 won (2.83%) from the previous close.