SK Hynix's ₩40 Trillion Buyback: WSJ Says "Opposite of U.S. Companies… This Is How It's Done" — BigGo Finance

SK Hynix (SKHY) reached a tentative wage deal with workers to pay at least 60% of 2026 bonuses in stock, not cash. The stock rose 4% pre-market. Workers will receive 40% in cash, 40% in stock (cashable immediately), and 20% in deferred stock. The deal includes a 6.3% base wage increase and a clause for wage deferral in case of losses. SK Hynix plans a 40 trillion won share buyback and to allocate over 50% of free cash flow to shareholder returns from 2025-2027.

SK hynix (000660.KS) announced a 40 trillion won ($27 billion) share buyback and cancellation plan, the largest in Korean stock market history. The company issued shares at a higher price last month and is now buying them back at a lower price. Wall Street Journal noted this aligns with 'sell high, buy low' principle. Analysts view the move positively, with Barclays, Nomura, and Citigroup maintaining bullish outlooks and price targets.

KOSPI rose 0.88% to 6,912.95, driven by chipmakers SK hynix (+2.31%) and Samsung Electronics (+3.87%) amid shareholder return expectations. SK hynix announced a 40 trillion won buyback. Institutional investors bought net 248.7 billion won, while foreign and retail investors sold. Rising U.S. Treasury yields posed pressure. Kosdaq fell 4.63%. Won strengthened to 1,386.5 per dollar.

South Korean stocks rose 0.88% on Friday, driven by shareholder return plans from Samsung Electronics and SK hynix. The KOSPI index closed at 6,912.95. Samsung gained 3.87% and SK hynix rose 2.31%. Institutional investors bought 248.2 billion won, while retail and foreign investors sold 1.34 trillion won. The Korean won appreciated against the US dollar.

SK Hynix is reportedly planning to build a memory semiconductor manufacturing plant in Japan, marking its first large-scale investment in the country. According to Hankyoreh, the project could involve tens of trillions of won and is seen as a move to expand production capacity amid a global supply shortage. SK Hynix shares rose 1.5% on Friday, outperforming the KOSPI. The company has not confirmed the project.

SK Hynix shares rose 12% after announcing a $28.7B stock buyback, targeting 50% of free cash flow returns from 2025-2027. The move, seen as a vote of confidence, follows a $54B investment in AI-related manufacturing. Analysts view the buyback as near-term support for the share price.