SK Square Announces Record Shareholder Return Plan of at Least KRW 4.3 Trillion
SK Square is planning its largest-ever shareholder return since its launch in 2021, pledging to distribute at least KRW 4.3 trillion to shareholders using dividend income from SK hynix. The move marks a significant expansion of its capital return policy as the investment company seeks to translate semiconductor-related earnings into greater shareholder value.SK Square announced on November 2 that…
SK Square is set to launch its most extensive shareholder return initiative to date, aiming to distribute a minimum of KRW 4.3 trillion in dividend income from SK hynix. This significant expansion of its capital return policy comes as the investment company seeks to convert semiconductor-related earnings into greater value for shareholders.
On November 2, SK Square disclosed expectations of receiving over KRW 6.2 trillion in dividend income from SK hynix's 2026 cash dividend, with at least KRW 4.3 trillion earmarked for shareholder returns. The company's 2027 shareholder return plan projects a total cash dividend pool for 2026 exceeding KRW 30 trillion, based on its ownership stake in SK hynix.
This new policy more than doubles SK Square's previous commitments to return at least 30% of recurring dividend income and a portion of investment gains, now increased to at least 60% of recurring dividend income until 2028. Additionally, the company will distribute 100% of special dividend income from Kioxia to shareholders. The specifics of the shareholder return program, including final amounts, will be determined after the company's 2026 financial statements are finalized.
Earlier this year, SK Square converted KRW 5.89 trillion in capital reserves into retained earnings, establishing a more sustainable framework for shareholder returns. The latest announcement underscores the board's steadfast commitment to boosting shareholder value while maintaining disciplined capital allocation principles.
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