SK Square said Monday it plans to return at least 4.3 trillion won ($3.2 billion) to shareholders, its largest shareholder return commitment since its launch in 2021, as surging dividends from SK hynix fuel a major expansion of its payout policy.
The investment holding company expects to receive more than 6.2 trillion won in dividend income from SK hynix, based on the chipmaker's plan to allocate over 30 trillion won to cash dividends for the 2026 fiscal year and SK Square's ownership stake.
Under the revised policy, SK Square will return at least 60 percent of its recurring dividend income to shareholders through 2028, doubling its previous minimum target of 30 percent.
It will also distribute 100 percent of the special dividend income linked to SK hynix's investment gains from Japanese memory chipmaker Kioxia, as outlined in SK hynix's shareholder return plan announced Wednesday.
The new commitment marks a substantial increase from SK Square's previous 2026-28 policy, which called for returning at least 30 percent of recurring dividend income and a portion of investment gains to shareholders.
The company said the final payout amount and details will be determined after its 2026 financial statements are finalized and the necessary procedures are completed.
Earlier this year, SK Square transferred 5.89 trillion won from capital reserves to retained earnings to establish a more sustainable framework for shareholder returns.
"The announcement reflects the board's firm commitment to enhancing shareholder value," SK Square said in a statement.
The company added that it would take a disciplined approach to new investments based on prudent capital allocation principles.
yeeun@heraldcorp.com
