Key points
- SK Square expects at least 6.2 trillion won from SK Hynix
- SK Square will return at least 60% of regular dividends to shareholders
- SK Square will pass on the Kioxia special dividend in full
SK Square (402340) plans to return more of the cash it receives from SK Hynix (000660) to its own shareholders. Through 2028, it will return at least 60% of regular dividends from the memory chipmaker, up from the 30% or more it promised in March.
It will also pass on all of its share of SK Hynix's special dividend from gains on Kioxia, the Japanese flash memory maker. Based on its current stake, SK Square expects at least 6.2 trillion won ($4.6B) in total SK Hynix dividends for 2026, according to its November 2 filing on Korea's disclosure system, DART.
SK Square shares were up 0.78% at 904,000 won ($676) as of 10:47 a.m. Monday in Seoul, giving the company a market value of 119.3 trillion won ($89.1B), according to Naver Finance.
SK Square's payout depends on SK Hynix
SK Square owns about 20% of SK Hynix, which makes it SK Hynix's largest shareholder. Much of the cash SK Square can hand back to its own investors comes from the dividends SK Hynix pays it.
The filing follows SK Hynix's own plan. On October 28, SK Hynix said it intends to pay at least 30 trillion won ($22.4B) in cash dividends for 2026, as part of about 100 trillion won in total shareholder returns. SK Square's filing cites that plan directly.
How much SK Square could return
Based on SK Square's estimate, 60% of the expected 6.2 trillion won is about 3.7 trillion won ($2.8B), by our calculations. The return could be higher because SK Square plans to pass on the Kioxia portion in full. It equals about 3% of SK Square's market value as of Monday morning.
The size of the Kioxia portion isn't known yet. SK Hynix split its 20,000 won third-quarter dividend into a regular half and a special half from its Kioxia investment gains, and it plans to include the rest of the Kioxia payout in its year-end dividend. SK Hynix hasn't said how large the total will be.
SK Square will set the amounts, method, and timing of its own returns after its 2026 financial statements are finalized. The filing also notes that the dividend income figure is an estimate that could change.
