The memory chipmaker will repurchase and retire 3.3% of its shares, citing undervaluation amid an 8x earnings multiple.
SK Hynix approved a $29 billion share buyback program, targeting 24.07 million shares—3.3% of its issued stock—over three months. The company will cancel all repurchased shares, removing them from circulation permanently, a rare move for South Korean firms.
The buyback follows a 12% surge in Seoul-listed shares, recovering from a prior selloff. SK Hynix trades at roughly 8 times earnings, prompting the board to act on undervaluation concerns. The Nasdaq-listed shares rose 4% to near $163.
The fixed 40 trillion won budget and immediate cancellation distinguish this from typical U.S. buybacks, where repurchased shares often remain in treasury.