SK Hynix Plans to Use 80% of Proceeds from Kioxia Stake Sale for Special Dividend, Potentially Reaching 16 Trillion Won

on October 26, according to South Korea's Dong-a Ilbo, SK Hynix is advancing plans to return approximately 80% of the proceeds from its sale of stakes in Japanese NAND flash memory manufacturer Kioxia to shareholders as a special dividend, with the relevant proposal expected to be disclosed alongside third-quarter earnings results on October 28.

The report indicates that SK Hynix expects investment gains from the sale of its Kioxia stake to be approximately 20 trillion won, meaning the special dividend could amount to 16 trillion won, more than seven times its total dividend of 2.1 trillion won paid out last year. Based on current outstanding shares, the special dividend is projected at approximately 23,000 won per share, with the company also considering whether to distribute it in installments.

SK Hynix participated in a Bain Capital-led consortium to acquire Toshiba's storage business in 2018, investing a cumulative total of approximately 395 billion yen. As these holdings are gradually sold off, the company anticipates realizing a profit of approximately 20 trillion won after deducting the principal.