SK Square plans to return at least 4.3 trillion KRW (about 3.2 billion USD) of its dividend income from SK Hynix to shareholders.
On Monday, SK Square announced its intention to distribute a minimum of 4.3 trillion KRW (about 3.2 billion USD) to shareholders out of the more than 6.2 trillion KRW (about 4.6 billion USD) in dividend income expected from SK Hynix’s cash dividends.
In its disclosure, SK Square elaborated that SK Hynix’s cash dividend resources for 2026 are projected to exceed 30 trillion KRW (about 22.4 billion USD). Based on SK Square’s ownership stake, this translates to an anticipated dividend income of over 6.2 trillion KRW (about 4.6 billion USD) for the company.
The announcement further detailed that by 2028, SK Square aims to return over 60% of its regular dividend income to shareholders. Additionally, the company plans to distribute 100% of the special dividend income from Kioxia, as outlined in SK Hynix’s shareholder return plan announced on October 28, 2026.
This newly revealed shareholder return strategy significantly surpasses SK Square’s existing policy for 2026-2028, which had targeted returning at least 30% of regular dividend income plus a portion of investment gains.
Specifically, the new plan doubles the amount of regular dividend income to be returned to shareholders by 2028 compared to the previous policy. Moreover, it commits to fully distributing the special dividend income generated in this instance to shareholders.
It’s worth noting that earlier this year, SK Square took proactive steps to establish a sustainable shareholder return structure by converting 5.89 trillion KRW (about 4.4 billion USD) from its capital reserve into retained earnings.
SK Square emphasized that this shareholder return plan announcement reflects the board’s strong commitment to enhancing shareholder value. The company also stressed its intention to carefully consider new investments based on rational capital allocation principles.