Investor sentiment shows signs of recovery after SK Hynix announces 60 trillion won shareholder return plan

SK Hynix reported its best-ever earnings and on October 28 announced a shareholder return plan worth approximately 60 trillion won. Shareholder returns refer to giving back a company's earnings to shareholders through dividends or share buybacks, and the news has sparked signs of recovery in investor sentiment across the stock market. Building on the 40 trillion won share buyback announced in August, SK Hynix is set to return a total of 100 trillion won to shareholders this year, allocating more than 60 trillion won to share buybacks and cancellations and over 30 trillion won to cash dividends.

Kim Woo-hyun, CFO of SK Hynix, said, "The current share price is undervalued and fails to fully reflect the profits and cash flows we are generating," adding, "We determined that buying back and canceling our own shares is an effective way to increase per-share value."

Of the 30 trillion won in cash dividends, 14 trillion won will be paid out as third-quarter dividends, with 20,000 won per share to be paid to shareholders as of November 30.

SK Hynix shares rose about 11% from the previous session following the announcement, approaching 1.5 million won. Samsung Electronics, which is set to announce its own shareholder return plan, also gained 9%. With large-cap stocks rallying, the KOSPI recovered the 6,000 mark after 10 trading days.

Samsung Electronics has already signaled shareholder returns of up to 110 trillion won this year, and is expected to disclose specific plans—including dividend method, timing, and scale—alongside its third-quarter earnings release on October 29.