Yu Young-hwa

SK Hynix announced a 40 trillion won share buyback and immediate cancellation over about three months starting August 20, which implies roughly 650 billion won of daily buyback demand, or about 5-6% of average turnover. The company also changed its free cash flow shareholder return policy from within 50% to at least 50%, making 50% a guaranteed minimum. It signaled a further specific shareholder return plan at Q3 results, so the 40 trillion won is not the end. Yu argues this does not directly increase next-year earnings, but it gives downside support, creates discomfort for short sellers, and is a positive re-rating story for SK Hynix.