South Korea's SK Hynix Completes 40 Trillion Won Buyback, to Cancel 3.3% of Shares Outstanding

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 (000660) completed a 40 trillion won share buyback a month early, acquiring 3.3% of its shares. Samsung Electronics also finished a 15 trillion won buyback. Both companies' purchases absorbed significant sell orders, but concerns arise about a supply gap as net selling continues. SK hynix will announce additional shareholder returns on the 28th.

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.

SK hynix (000660.KS) completed a 40 trillion won ($28 billion) share buyback, acquiring 24.07 million shares (3.3% of outstanding shares). The program ended early, on October 21. Samsung Electronics (005930.KS) previously spent 15 trillion won on a buyback. Analysts note the potential impact on South Korea's stock market, as these buybacks supported demand amid foreign selling.