SK Hynix announces $75 billion in shareholder payouts — Channel NewsAsia

South Korean chipmaker SK Hynix has announced plans to allocate about 100 trillion won, or $75.4 billion, to shareholder payouts this year. The company disclosed the decision after its third-quarter operating profit rose more than sevenfold and reached a record level.

Record quarterly result

As Channel NewsAsia reports, SK Hynix's operating profit in July-September amounted to 83.3 trillion won, compared with 11.4 trillion won in the same period a year earlier. The figure exceeded the LSEG SmartEstimate forecast of 76.7 trillion won.

The company's quarterly revenue increased by 328% to 104.6 trillion won. Growth was supported by steady demand for artificial intelligence infrastructure, which pushed up memory chip prices. The manufacturer's shares rose 2%, while the broader market gained 2.2%.

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Dividends and share buybacks

The shareholder return program includes 30 trillion won in cash dividends and 60 trillion won for share repurchases and cancellations. The latter amount includes 40 trillion won that the company announced in August.

SK Hynix also reaffirmed its expectation that demand will exceed supply through 2030. To improve demand forecasting, the company entered into long-term agreements with 14 major customers and is discussing with some of them the possibility of extending contracts, which are usually designed for five years. According to the company, the volume of products already under contract exceeds 50% of its total production capacity for 2027 and 2028.