„SK hynix“ is one of the leading manufacturers of advanced high-bandwidth memory (HBM) chips used to control AI tools. This year, its shares soared sharply as semiconductor demand significantly increased.
However, after reaching a peak in June, the company’s share value dropped about 50% in July, as investors massively withdrew from this sector fearing that the huge sums poured into it will not pay off as quickly as expected, if at all.
Although the price of „SK hynix“ slightly recovered this month, it fell 9.8% on Wednesday.
After the end of Wednesday’s trading session, the company announced that its board approved a plan to buy back shares worth 40 trillion won to increase shareholder returns.
“We decided to purchase and cancel 40 trillion won worth of treasury shares to efficiently redistribute capital and increase value for shareholders,” the company said in a statement submitted to the regulator, which also noted that the company’s shares are “undervalued” compared to their true worth.
The share buyback was announced after SK Group Chairman Chey Tae-won acquired about 4.8 billion won worth of company shares at the end of July. This move is seen as an effort to show confidence in the company.
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