SK Hynix (SKHY) said on Monday, October 26, that it will announce new shareholder-return measures with its third-quarter results on Wednesday, October 28. The Korea Exchange had asked the memory maker to respond to a Dong-A Ilbo report that it plans a special dividend of about ₩16 trillion (about $12 billion).
SK Hynix said only that it is “reviewing various shareholder return measures,” according to Reuters. It hasn’t confirmed an amount or a form. Its Seoul shares were up 0.5% on Monday while the broader market fell.
The timing is no accident. On October 23, Solidigm halted its review of a pre-IPO round and a U.S. listing after shareholders argued a separate listing would deepen the discount on SK Hynix’s own stock. Shares closed 4.4% higher that day.
Where SK Hynix’s Special Dividend Would Come From
Dong-A said the payout would be about 80% of an estimated ₩20 trillion (about $15 billion) gain from selling down SK Hynix’s stake in Kioxia (285A), the Japanese flash maker it backed in 2018.
It would land on top of the ₩40 trillion (about $30 billion) buyback approved on August 19, which covers about 24.07 million shares (3.3% of issued shares), all to be cancelled. That day, SK Hynix also raised its target to returning “over 50%” of cumulative free cash flow for 2025 to 2027, with dividend details due at Q3 results.
The Cash Is There
Free cash flow nearly doubled to $17.91 billion in 2025 from $9.38 billion in 2024.
Over the last 12 months, it hit $59.28 billion, more than three times the 2025 total, as AI demand pushed DRAM and NAND prices sharply higher.
Add the buyback to the reported special and SK Hynix would be handing back roughly $42 billion, or about 70% of trailing free cash flow. That would be a big step toward its “over 50%” target, which is measured on cumulative free cash flow and total shareholder returns across 2025 to 2027. Net cash sat at about ₩69 trillion (about $52 billion) at the end of June, before the buyback began.
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A Big Break From SK Hynix’s Old Payout
The old payouts were small. SK Hynix paid $1.16 billion in dividends in 2025 and $4.37 billion across 2021 to 2025. A $12 billion special would be about 10 times last year’s payout and close to triple the five-year total.
Against a $703 billion market cap, though, the special is about 1.7%. Generous by SK Hynix’s standards, modest next to the company.
The biggest single winner would be SK Square (402340), which owns about 20% of SK Hynix and would collect roughly ₩3.2 trillion (about $2.4 billion) of a ₩16 trillion (about $12 billion) special.
What SK Hynix Has to Confirm on October 28
Wednesday comes down to one number: the special dividend against Dong-A’s ₩16 trillion (about $12 billion). A figure close to it means shareholders get most of the Kioxia windfall even though Solidigm still needs money for a new U.S. fab, a need SK Hynix said on October 23 hasn’t changed. A much smaller special would shift the focus to how SK Hynix plans to fund that fab, since it says it is still weighing the investment’s timing, scale and financing.
I don’t think SK Hynix has to choose. Take the ₩40 trillion (about $30 billion) buyback out of June’s net cash and about ₩29 trillion (about $22 billion) is left, before any second-half cash flow. That covers a ₩16 trillion (about $12 billion) special with room to spare, though the board will also weigh distributable profits and Solidigm’s fab when it sets the figure on Wednesday.
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