[Record-breaking Stock Cancellation by a South Korean Listed Company: SK hynix to Repurchase and Cancel 4 Trillion KRW Worth of Shares, Raising Shareholder Return Target to At Least 50% of Free Cash Flow] Odaily Planet Daily reports that Citrini analyst Jukan posted on the X platform, stating that SK hynix's board of directors approved the repurchase and cancellation of treasury shares worth 4 trillion KRW on August 19. Based on the previous day's closing price of 1.662 million KRW per share, the company plans to repurchase approximately 24.07 million shares, accounting for about 3.3% of the total issued shares. The repurchase will begin on August 20 and last for about three months, after which all repurchased shares will be canceled. This will mark the largest stock cancellation ever implemented by a South Korean listed company. SK hynix stated that considering the company's business competitiveness, cash generation capability, and medium- to long-term growth prospects, the current stock price does not fully reflect its intrinsic value. As of the end of the second quarter, the company’s net cash position was approximately 69 trillion KRW, and its cash generation capability has significantly improved. SK hynix will also accelerate the execution of its existing shareholder return policy, which involves returning up to 50% of cumulative free cash flow from 2025 to 2027. Additionally, the company plans to raise its shareholder return target from "up to 50% of cumulative free cash flow" to "at least 50%." While advancing its financial stability goals as planned, the company intends to continue shareholder returns while maintaining a stable financial structure. SK hynix plans to combine stock repurchases and cancellations with cash dividends and is considering expanding dividends through measures such as increasing fixed dividends and issuing special dividends. The specific scale and structure of additional shareholder returns will be determined by the board of directors and announced alongside the company’s third-quarter results.