Full Breakdown
SK Hynix Weighs $12 Billion Special Dividend Tied to Kioxia Stake Gains
By Drooid · · How we work
Core Event
South Korean memory-chip maker SK Hynix is expected to disclose a set of shareholder-return measures on October 28 (scheduled) when it releases its third-quarter earnings. Media reports on October 25 and October 26 indicated that the company is considering a special dividend of roughly 16 trillion won (about $12 billion), representing about 80 % of the estimated 20 trillion won gain realized from the sale of its equity stake in Japanese NAND-flash producer Kioxia Holdings.
Background & Context
SK Hynix entered the Kioxia investment in 2018 through a consortium led by Bain Capital, contributing roughly 4 trillion won in cash and convertible bonds that could be turned into about a 15 % equity position. Over the first half of 2026, Kioxia’s share price surged more than tenfold, reaching a peak of 37,566 yen on June 22 (occurred) before retreating to 12,755 yen by late October. The rise in Kioxia’s valuation generated the bulk of SK Hynix’s windfall, even though the Korean firm remained a direct competitor in the NAND market.
Data & Statistics
- Estimated gain from the Kioxia stake sale: ~20 trillion won.
- Proposed special dividend: 16 trillion won (? $12 billion), or about 23,000 won (? $17) per share, roughly 15 times the regular annual dividend of 1,500 won.
- Convertible bonds held by SK Hynix could be converted into roughly 14 % of Kioxia’s voting rights.
- Kioxia’s stock moved from 3,648 yen to 37,566 yen between January and June 2026, then fell 66 % to 12,755 yen by late October.
Official Statements & Responses
The company added that additional measures will be announced at the October 28 earnings release following a board resolution.
Fund manager Kim Namho of Timefolio Asset Management noted that the dividend prospect, together with the company’s decision to pause a U.S.
Conflicting Reports & Gaps
- Bloomberg reported on October 25 that SK Hynix plans a 16 trillion-won special dividend, citing “people familiar with the plan.”
- Business Times and Startup Fortune echoed the same figure on October 26, describing it as a “$12 billion special dividend” funded by the Kioxia stake sale.
- In contrast, SK Hynix’s own filing on October 26 denied that a definitive dividend plan had been set, emphasizing that decisions remain pending board approval.
The discrepancy centers on whether the dividend has been formally approved (as implied by the media reports) or remains under consideration (as asserted by the company). No further details on the exact size of the one-off gain have been disclosed by SK Hynix.
What’s Next
SK Hynix is slated to announce its final shareholder-return package, including any special dividend, at the October 28 earnings conference. The announcement will clarify whether the proposed 16 trillion-won payout proceeds and how it fits within the company’s broader cash-return strategy, which may also involve share buybacks amounting to up to 60 trillion won.