[Edaily Reporter Kim Kyung-eun ] SK hynix(000660)announced a large-scale shareholder return plan, signaling a rebound in its stock price. A single-stock leveraged ETF that tracks SK hynix’s stock price at double the rate also surged, sweeping the top ranks of all exchange-traded funds (ETFs). Analysts in the securities industry predict that this shareholder return will serve as a catalyst for a revaluation of the company’s stock and provide support against further declines.

According to fund rating agency KG Zeroin on the 21st, an analysis of the one-week returns (from the 13th to the 20th) for domestic equity funds with net assets (aggregated across classes) of at least 10 billion won and a management period of at least one month revealed that the product with the highest return for the week was Samsung Asset Management’s “KODEX SK hynix Single-Stock Leverage,” which rose 9.87% during that period.

Next were: △Kiwoom Investment Asset Management’s “KIWOOM SK hynix Futures Single-Stock Leverage” (return of 9.68%) △ Mirae Asset Management’s “TIGER SK hynix Single-Stock Leverage” (9.65%) △ Shinhan Asset Management’s “SOL SK hynix Single-Stock Leverage” (9.62%) △ Hana Asset Management’s “1Q SK hynix Futures Single-Stock Leverage” (9.55%).

During the same period, SK hynix’s stock price rose 6.15%. This was driven by the company’s announcement on the 19th of a 40 trillion won share buyback and cancellation plan, which boosted investor sentiment. The company plans to acquire 24.07 million shares, representing 3.3% of its outstanding shares. The acquisition period runs from the 20th through November 19. The company plans to cancel all acquired shares once the purchase is complete.

Kim Seon-woo, an analyst at Meritz Securities, stated, “Investors had been disappointed because no measures to boost the stock price were announced during earnings calls throughout the market correction period that began in July,” adding, “The company is expected to drive a rise in the stock price by rapidly completing the share buyback within the three-month period outlined in this plan.”

The company has also strengthened its medium- to long-term shareholder return policy. SK hynix had previously decided to allocate 50% of its cumulative free cash flow (FCF) over the three-year period from 2025 to 2027 to shareholder returns, but has raised this to “at least” 50%. The company will pursue a combination of share buybacks and cancellations along with cash dividends, and is also considering plans to expand both fixed and special dividends.

HANWHA INVESTMENT & SECURITIES estimated SK hynix’s cumulative FCF for 2025–2027 at approximately 491 trillion won (28.8 trillion won in 2025, 191.6 trillion won in 2026, and 270.6 trillion won in 2027). According to their calculations, even if only the minimum payout ratio of 50% is applied, the total funds available for shareholder returns would amount to over 245 trillion won.

Park Jun-young, an analyst at HANWHA INVESTMENT & SECURITIES, “Even if only half of the total return funds are used for share buybacks and cancellations, the cumulative scale of such activities could exceed 120 trillion won,” he said. “We are paying close attention to the possibility that, based on future large-scale free cash flow (FCF) generation, share buybacks and cancellations significantly exceeding 100 trillion won could become a reality, and we expect this to lead to a sustained reduction in the number of shares outstanding and an increase in value per share.”

Over the past week, domestic equity funds posted a return of 0.26%. The KOSPI showed strength early in the week on expectations of a slowdown in U.S. inflation and an improvement in the semiconductor sector. Subsequently, however, it underwent a sharp correction—led by semiconductor stocks—as international oil prices and U.S. long-term Treasury yields surged, and concerns over delays in U.S. data center construction came to the fore. Nevertheless, the market rebounded on the back of SK hynix’s shareholder return policy. The KOSDAQ fell due to valuation pressures on growth stocks caused by rising U.S. Treasury yields and profit-taking following a sharp short-term rally.

Most major global stock markets were in the red. The S&P 500 fell despite solid second-quarter corporate earnings, as international oil prices rose due to tensions in the Middle East and U.S. long-term Treasury yields surged. The Nikkei 225 declined on the possibility of further interest rate hikes by the Bank of Japan. The Euro Stoxx 50 fell on concerns over rising international oil prices. The Shanghai Composite Index edged slightly lower despite expectations of further economic stimulus from the Chinese government and strength in artificial intelligence (AI) and robotics-related stocks.

Looking at capital flows, the assets under management (AUM) of domestic equity funds increased by 90.5 billion won to 20.5263 trillion won. AUM for bond funds decreased by 397.1 billion won to 30.4704 trillion won, while AUM for money market funds (MMFs) rose by 2.0087 trillion won to 194.6682 trillion won.