SK hynix (000660.KS) will spend about 100 trillion won ($70 billion) on shareholder returns for this fiscal year, adding 60 trillion won on top of a recently completed 40 trillion won share buyback and cancellation program.
The chipmaker said in a regulatory filing on the 28th that it plans to pay more than 30 trillion won in cash dividends and carry out more than 60 trillion won in share buybacks and cancellations.
The company set its third-quarter dividend at 20,000 won per share. That consists of 10,000 won based on earnings and a 10,000 won special dividend tied to Kioxia. The Kioxia special dividend will be split between the third-quarter payout and the year-end dividend. The year-end amount will be determined through relevant procedures once earnings are finalized.
The buybacks will continue. On the same day, the company approved the purchase of 20 trillion won worth of its own shares. About 10 trillion won of that will go toward shareholder returns, with the remaining 10 trillion won set aside for employee compensation. The annual buyback and cancellation plan includes the 40 trillion won approved in August and excludes shares purchased for employee compensation. Shares bought for shareholder returns will be cancelled.
The returns will be carried out in stages through the payment of this year's year-end dividend. The company said it will decide the size of additional buybacks at quarterly board meetings, taking market conditions and cash flow into account. The total scale of the returns may change depending on the business environment and earnings.