SEOUL, August 19, 2026, 21:37 KST — Korea’s market ended the session.
- SK hynix intends to conduct a 40 trillion won share buyback and cancellation between August 20 and November 19.
- The authorization represents 57.6% of net cash from the second quarter.
- The 24.07 million shares targeted account for roughly 3.3% of the outstanding stock.
SK hynix Inc. (KRX:000660; NASDAQ:SKHY) has reacted to Wednesday’s market slump with a major balance sheet move. The company’s 40 trillion won buyback authorization amounts to 57.6% of its net cash, which stood at 69.4 trillion won as of June.
The ratio holds greater importance than just the headline. The scale of the plan has the potential to shift capital allocation, as the company invests in expensive new memory capacity.
The company plans to repurchase and retire 24.07 million shares from August 20 to November 19, representing around 3.3% of its total shares. The Wall Street Journal reports the initiative would mark the biggest share buyback in South Korea to date.
| Capital measure | Amount | Investor comparison |
|---|---|---|
| Buyback mandate | KRW 40.0tn | 57.6% of Q2 net cash |
| Q2 net cash | KRW 69.4tn | 1.74 times buyback size |
| Y2 and M17 fab initiative | KRW 54.3tn | Buyback is 73.7% of this figure |
| Shares proposed | 24.07m | Roughly 3.3% of total shares |
Shares closed at 1.5 million won on Wednesday, valuing the stock at about 36.1 trillion won. The ultimate cash outlay will be determined by execution prices. SK hynix dropped 9.75% in Seoul amid a wider tech sector downturn.
The balance sheet is sufficient to back the purchase. Early second-quarter figures indicated record highs for revenue, operating profit, and cash flow. Net cash was almost twice as high as in March.
| KRW trillion | Q2 2026 | Q1 2026 | Q2 2025 | YoY change |
|---|---|---|---|---|
| Revenue | 79.3 | 52.6 | 22.2 | +257% |
| Operating profit | 60.5 | 37.6 | 9.2 | +557% |
| Operating margin | 76% | 72% | 41% | +35 points |
| Net cash | 69.4 | 35.0 | Not disclosed | Not applicable |
The results are still provisional. SK hynix recorded cash holdings of 88 trillion won and debt totaling 18.6 trillion won at the end of the quarter. Roughly 10 customers were included in long-term supply contracts.
The compromise is clear. On August 7, SK hynix gave the green light to invest about 54.3 trillion won in new fabrication facilities at Yongin and Cheongju. These facilities will focus on DRAM and NAND production, as well as high-bandwidth memory.
The buyback comes after a significant downturn in the memory sector. On Tuesday, SK hynix’s U.S. ADR dropped 9.2% to end at $155.62. Shares of Micron Technology Inc. NASDAQ:MU slipped 7%, and Nvidia Corp. NASDAQ:NVDA slid 2.3%.
| Security | August 18 move | Close | Read-through |
|---|---|---|---|
| SK hynix ADR NASDAQ:SKHY | -9.2% | $155.62 | Concerns over memory and AI-related spending |
| Micron NASDAQ:MU | -7.0% | $940.76 | Widespread selloff in memory sector |
| Nvidia NASDAQ:NVDA | -2.3% | $219.74 | AI sector under pressure |
| SK hynix local KRX:000660 | -9.75% on August 19 | KRW 1,500,000 | Buyback declared following decline |
Brokers continue to hold a positive stance on the U.S. ADR. Latest price targets range from $204 up to $330. With the share closing at $155.62 on Tuesday, the lowest target suggests a potential upside of 31%. However, these targets are projections and not assurances of returns.
| Firm | Date | Recommendation | ADR target | Upside vs. $155.62 |
|---|---|---|---|---|
| UBS | July 30 | Buy | $204 | 31.1% |
| Stifel | August 4 | Buy | $240 | 54.2% |
| Cantor Fitzgerald | August 4 | Overweight | $300 | 92.8% |
| Rosenblatt | August 4 | Buy | $320 | 105.6% |
| Barclays | July 14 | Overweight | $330 | 112.1% |
UBS analyst Nicolas Gaudois projected an average return on equity of 40.2% for 2027–2031, compared to 17.7% implied by his model’s valuation. Stifel highlighted SK hynix’s role in AI memory infrastructure.
In March, Chief Executive Kwak Noh-Jung stated SK hynix would “continue reviewing dividends and share repurchases this year.” The plan revealed on Wednesday sets this commitment into a concrete three-month initiative. SK hynix annual meeting
Risks: AI investments might decelerate, memory prices might decline, or fresh capacity might come online sooner than anticipated. A significant cash return could also reduce financial flexibility as the 54 trillion won fab is constructed. Labor talks introduce a smaller short-term element of cost uncertainty.
The initial milestone falls on Thursday, marking the start of execution. Investors are advised to monitor the speed of purchasing, HBM contract clarity, and if capital expenditure remains under control. SK hynix states that combined dividends and share buybacks will surpass 50% of accumulated free cash flow from 2025 to 2027.
Related articles: NASDAQ:SKHY
SK hynix capital-return dashboard
Capital allocation: the buyback is not cosmetic
Q2 2026 operating acceleration
Recent ADR analyst targets
Execution timeline
What matters next
- Daily purchase pace and realized average price.
- HBM contract visibility and AI-capex demand.
- Whether the 54.3tn won fab plan stays disciplined.
- Cash conversion after record memory pricing.
- Labor-cost outcome from wage negotiations.
