JPMorgan: SK Hynix Raises Shareholder Return Cap, May Distribute at Least $130 Billion More by 2027

(1) SK Hynix announced on Wednesday a 40 trillion Korean won (approximately $29 billion) stock buyback plan. More importantly, the company decided to raise the shareholder return ratio ceiling—from the previously promised "up to 50%" to "more than 50%." This means SK Hynix is committing to use more than half of its accumulated free cash flow from 2025 to 2027 for shareholder returns. (2) JPMorgan analyst Jay Kwon estimates this implies that, by 2027, shareholders will receive "at least 180 trillion Korean won (approximately $130 billion) in additional returns" beyond the previously announced plans, amounting to 16% of the company's current total market capitalization. (3) Analysts believe this significantly increased return commitment is expected to provide strong support for SK Hynix after the recent stock price correction and enhance investor confidence.