SK Hynix announced a quarterly dividend of 273.3 billion won through a disclosure on the 7th, paying 375 won per ordinary share. The announcement comes as shareholders have been demanding substantial returns from the company, which is expected to generate over 200 trillion won in operating profit this year. The dividend amount falls significantly short of shareholder expectations for returns in the tens of trillions of won, given the company's massive profitability.
SK Hynix Announces 273.3 Billion Won Quarterly Dividend
SK Hynix disclosed on the 7th that it will implement a quarterly dividend of 375 won per ordinary share, totaling 273.3 billion won. This marks a partial fulfillment of the shareholder return commitments the company has publicly stated. The dividend represents a relatively modest scale when considering SK Hynix's financial performance, with annual operating profit projected to exceed 200 trillion won this year.
![SK Hynix headquarters in Icheon, Gyeonggi Province]()
The company faced shareholder criticism earlier this year for emphasizing cash accumulation. At the shareholder meeting in March, President Kwak No-jung presented a financial target of "net cash 100 trillion won" - approximately 10 times the amount held at that time. This target was interpreted by the market as a signal to restrain shareholder returns including dividends, causing disappointment.
During the Q2 earnings conference call held last month, no specific mention of shareholder returns was made. SK Hynix explained at the conference call that "due to regulatory and procedural constraints related to the ADR offering, there are certain limitations in providing additional new material information that was not disclosed during the offering process at this time." The company was subject to a 25-day prospectus delivery obligation following the listing of American Depositary Receipts (ADR) on Nasdaq, making it difficult to announce new investment-related information.
![Chairman Choi Tae-won]()
Chairman Choi Tae-won subsequently purchased 3,620 shares of SK Hynix stock in an effort to appease shareholders, though this proved insufficient to satisfy shareholders exhausted by sharp stock price fluctuations.
Company Approaches Net Cash Target of 100 Trillion Won
SK Hynix's financial target of "net cash 100 trillion won" appears nearly achieved. As of the end of June, SK Hynix held cash and cash equivalents of 87.9 trillion won, with net cash estimated at approximately 69.4 trillion won. When considering the proceeds from the sale of Kioxia shares along with funds raised through the ADR offering, net cash could potentially reach 100 trillion won.
Shareholder Group Demands 100 Trillion Won in Returns
The Korea Shareholder Movement Headquarters, a retail investor advocacy group, recently issued a statement demanding that SK Hynix return 100 trillion won to shareholders. The Shareholder Movement Headquarters argued that "SK Hynix's operating profit for the year is approximately 228 trillion won based on securities firm consensus," adding that "applying 40%, the level of competitors, yields approximately 100 trillion won as the return amount."
Additional Shareholder Return Plans to Be Finalized in Q3
SK Hynix stated in its dividend announcement that "the company is actively reviewing additional shareholder return measures to enhance shareholder value, and specific details will be finalized and announced during Q3."
FAQ
How much dividend did SK Hynix announce on the 7th?
SK Hynix announced a quarterly dividend of 273.3 billion won, paying 375 won per ordinary share through a disclosure on the 7th.
What is SK Hynix's net cash position as of the end of June?
As of the end of June, SK Hynix held cash and cash equivalents of 87.9 trillion won, with net cash estimated at approximately 69.4 trillion won. The company's financial target is to reach net cash of 100 trillion won.
When will SK Hynix announce additional shareholder return plans?
SK Hynix stated that specific details of additional shareholder return measures will be finalized and announced during Q3.
