Key Highlights

  • SK hynix, the South Korean memory maker, saw its US-traded line rise about 8% in pre-market trading on Wednesday, October 28, 2026, after the company's release of that day set out a fiscal 2026 shareholder return plan of about KRW 100 trillion.
  • The plan commits to return 50% or more of free cash flow, with cash dividends of KRW 30 trillion or more and repurchases and cancellations of KRW 60 trillion or more, including the KRW 40 trillion buyback announced in August.
  • The third quarter cash dividend is KRW 14 trillion, or KRW 20,000 per share, made up of KRW 10,000 regular and KRW 10,000 special from Kioxia investment gains, against operating profit of KRW 83.3338 trillion.
  • The reported conversion of about USD 75 billion for the plan is approximate and depends on the exchange rate, and the pre-market gain is a thinly traded snapshot that can change before the open.

The Return Plan and the Pre-Market Move

SK hynix, a South Korean memory chip maker, saw its US-traded line rise about 8% in pre-market trading on Wednesday, October 28, 2026, while Korean shares rose about 10%. Alongside third quarter results, which showed revenue of KRW 104.6155 trillion and operating profit of KRW 83.3338 trillion, the company's release of Wednesday, October 28, 2026 set out a fiscal 2026 shareholder return plan of about KRW 100 trillion. A Korean report of Monday, October 19, 2026 had cited analyst expectations of more than 30 trillion won, so the announced scale is well above that earlier expectation. The reported conversion of about USD 75 billion is approximate.

How Buybacks and the Dividend Fit Together

A buyback uses cash to repurchase shares, and cancelling them permanently reduces the number outstanding, so earnings per share and ownership stakes rise for remaining holders. A dividend instead pays cash directly. The plan splits the two: cash dividends of KRW 30 trillion or more and repurchases and cancellations of KRW 60 trillion or more. The KRW 40 trillion buyback announced in August was completed last week and is to be cancelled shortly. The third quarter repurchase of KRW 20 trillion comprises KRW 10 trillion cancelled as shareholder return and about KRW 10 trillion for employee compensation, which is excluded from the return total. Buybacks are to continue every quarter.

Risks and What to Watch

The bull reading is that a plan of about KRW 100 trillion, backed by cash of KRW 114.5 trillion and net cash of KRW 98.7 trillion, shows confidence in cash generation and supports earnings per share once shares are cancelled. The bear reading is that investment at Yongin Phase 1, which enters full operation next year, is expected to rise significantly, and memory pricing is cyclical, so a later reduction in payouts is possible. Three risks apply: the special dividend of KRW 10,000 per share depends on Kioxia investment gains, the figures are preliminary and unaudited, and the dollar conversion depends on the exchange rate. Investors should watch the cancellation of the August buyback shares and the open at 9:30 a.m. ET on Wednesday, October 28, 2026.

Where Things Stand

The answer is that the company's release of Wednesday, October 28, 2026 announced a fiscal 2026 shareholder return plan of about KRW 100 trillion, with a commitment to return 50% or more of free cash flow. The key number is that KRW 100 trillion total, set against third quarter cash of KRW 114.5 trillion. The next catalysts are the 9:30 a.m. ET open on Wednesday, October 28, 2026, the decision of the Federal Reserve due later that day, and the cancellation of repurchased shares. Pre-market prices are snapshots and can change, and this is not investment advice.