SK hynix ends 40t won buyback, Korea market braces for supply gap

FSC Chairperson Lee stated that SK hynix's (000660) U.S. unit Solidigm's listing falls under dual-listing rules, requiring SK hynix and SK Square (402340) to meet parent-company obligations. Lee confirmed the rules apply to overseas listings but avoided commenting on Solidigm's registration status. The FSC and KRX prohibit dual listings unless five shareholder protection measures are met.

Samsung Electronics (005930) and SK Hynix (000660) fell over 3% on the 22nd, trading at 216,500 won and 1,249,000 won respectively. U.S. semiconductor stocks rose, but domestic firms showed weakness due to AI infrastructure concerns. Both companies completed large share buybacks, with SK Hynix burning 3.3% of its shares. KB Securities noted undervaluation and potential rebound.

The Bank of Korea (BOK) upgraded its growth forecasts, citing strong semiconductor demand. It expects growth to exceed 3.3% this year and 2.9% next year, driven by record results from semiconductor companies like Samsung Electronics. Inflation is projected to stay above the 2% target. The BOK also noted strong semiconductor exports contributing to a high current account surplus.

Samsung, SK Hynix, and CXMT are advancing 4F² DRAM technology, while Micron abandons it, focusing on 6F² and 3D stacking. Samsung and SK Hynix aim for commercialization by 2027-2028, potentially impacting cost competitiveness and chip density. Micron's strategy includes wafer bonding and vertical HBM. Market shares in NAND are shifting, with Chinese firms gaining ground. Shares of Samsung and SK Hynix rose 6% on the news.

SK Hynix completed a 40 trillion won ($30.2 billion) share buyback, repurchasing 3.3% of its shares. The company plans to cancel all repurchased stock, the largest such move by a South Korean listed company. Additional shareholder return measures will be announced with Q3 earnings on Oct. 28.

SK Hynix completed a KRW 40 trillion treasury stock buyback, acquiring 24.07 million shares (3.3% of issued shares) and retiring them. The buyback, initially scheduled to last until November 19, finished a month early. SK Hynix plans to announce further shareholder return measures with its Q3 earnings on October 28. Samsung Electronics previously completed a KRW 15 trillion buyback.