SK hynix will pay staff $50,000 apiece according to a tentative agreement with disgruntled workers — $1.79 billion potential profit pool will be split between cash and stock grants

Samsung Electronics plans to announce a shareholder return policy worth over 100 trillion won ($71.75B) later this month, including a special dividend, according to media reports. The plan, to be approved at a board meeting, will allocate 50% of the company's free cash flow. Rival SK Hynix unveiled a 40-trillion-won ($28.6B) share buyback and cancellation plan. Both companies are sharing record profits driven by an AI-driven chip supercycle.

Seoul's KOSPI index rose 5.89% to 6,852.58, driven by chip sector gains and eased U.S. bond yield concerns. SK hynix announced a $28.7B share buyback, and Samsung Electronics surged 9.49%. Foreign investors bought net 1.71T won. The Korean won fell against the U.S. dollar.

SK Hynix, a South Korean semiconductor company, announced a 40 trillion won (€25 billion) share buyback program to boost market valuation. The company plans to repurchase and cancel 24.1 million shares, citing undervaluation despite strong cash flow and growth prospects. The move follows a recent 10% share price drop amid market volatility. SK Hynix also raised its target for shareholder returns to over 50% of cumulative free cash flow.

SK Hynix and Samsung Electronics led the Kospi's 5.9% surge after announcing significant shareholder returns. SK Hynix unveiled a 40 trillion won ($28.9 billion) buyback plan, jumping 12.7% in a day. Analysts estimate further returns of 181.5-211 trillion won. Samsung plans a 150 trillion won program. Both companies benefit from AI-driven cash generation.

Gold prices rose nearly 4% to $4,500 after the US Treasury announced it would double buybacks of longer-dated Treasuries, suppressing yields and weakening the US dollar. The move signaled government intervention to control bond markets, which could lead to a weaker dollar and potentially higher interest rates. The Fed's stance on inflation and rate hikes remains uncertain. Bitcoin and crypto-related stocks also saw gains.

SK Hynix and Samsung announced large shareholder return plans, with SK Hynix approving a $28.6B buyback and Samsung preparing a $72B return package. Micron, despite strong cash generation, has not followed suit, with minimal capital return. Micron's financials show significant cash reserves and flexibility, but structural differences and cyclical caution may delay any major shareholder returns.