SK Square plans to return at least 4.3 trillion won ($3.2 billion) to shareholders from more than 6.2 trillion won it expects to receive in SK hynix dividends, Yonhap reported on 2 November. The South Korean company announced the plan for shareholders in SK Square, the parent of SK hynix, which Yonhap describes as the world’s second-largest memory chipmaker.
Key points
- SK Square expects more than 6.2 trillion won in dividend income from its SK hynix stake and plans shareholder returns of at least 4.3 trillion won.
- Its commitment to return at least 60 percent of ordinary dividend income through 2028 doubles the previous minimum for regular dividend income.
- The company also plans to pass on all special dividend income tied to gains from Kioxia.
- The payout method and final scale are subject to procedures after SK Square’s 2026 financial statements are finalised.
SK hynix dividends underpin the 4.3 trillion won plan
SK Square’s expected receipts come from cash dividends on its holding in SK hynix. The chipmaker’s planned dividend pool exceeds 30 trillion won for 2026, Yonhap reported. MoneyToday reported that SK hynix’s cash dividends for 2026 were expected to rise above 3 trillion won.
The proposed return amounts to approximately 69 percent of SK Square’s expected dividend income. SK Square announced the terms in a shareholder return plan for 2027 on 2 November. The payout is planned at a minimum of 4.3 trillion won, while the dividend receipts on which it is based remain an expectation.
SK hynix announced record third-quarter revenue and operating profit in the week of 26 October. It also set out plans to return more than 100 trillion won to shareholders in 2026, according to Yonhap. AI Affairs previously reported its third-quarter profit and plans for further shareholder returns.
SK Square raises its ordinary-income minimum
For ordinary dividend income, SK Square’s new minimum shareholder distribution is 60 percent through 2028. Its previous policy called for at least 30 percent of regular dividend income to be returned during 2026–2028, MoneyToday reported. The higher minimum applies to the recurring dividend stream, rather than the separate proceeds associated with Kioxia.
The announced 4.3 trillion won is therefore a planned payout from SK Square to its own shareholders, funded by dividends it expects from SK hynix. SK Square had decided to increase the share of the chipmaker’s expanded dividends passed through to those shareholders. The plan sets a floor for ordinary income through 2028, beyond the proposed payout tied to the 2026 accounts.
SK Square said the method and final scale of its shareholder returns would be settled through the relevant procedures after its financial statements for the 2026 fiscal year are finalised. Those procedures would determine the form and amount of the returns.
Kioxia gains receive a separate 100 percent commitment
SK Square also plans to return 100 percent of any special dividend income associated with investment gains from Kioxia, the Japanese NAND flash memory manufacturer. SK hynix invested in Kioxia through a Korean-U.S.-Japanese consortium led by Bain Capital. The special income is a one-off item, distinct from the regular dividends covered by SK Square’s 60 percent minimum.
AI Affairs previously reported that SK hynix was weighing a special dividend of about 16 trillion won from a Kioxia stake sale. SK Square’s new commitment concerns any special dividend income it receives from Kioxia-related investment gains, rather than the ordinary SK hynix dividends behind its planned 4.3 trillion won payout.
Earlier in 2026, SK Square moved 5.89 trillion won from capital reserves into retained earnings. The conversion made resources available for shareholder returns, MoneyToday reported.
