SK Hynix to acquire and retire 40 trillion won in treasury shares… Samsung Electronics also hints at up to 150 trillion won in shareholder returns

Analyst Jo Seon-il recommends reducing exposure to Samsung Electronics and SK Hynix stocks whenever they rebound. Instead, he explained the need to focus on other companies that can receive indirect benefits in the market.

"In fact, I am advising to reduce the proportion of Samsung Electronics and SK Hynix every time they rebound."

SK Hynix announced a large-scale shareholder return policy to acquire 40 trillion won worth of treasury shares and retire all of them. Along with this, the company stated that it would return more than 50% of its FCF (Free Cash Flow) to shareholders. The buyback and retirement of treasury shares will proceed for three months.

"SK Hynix was the first, as you can see, to announce that it would acquire 40 trillion won in treasury shares."

SK Hynix's third-quarter earnings announcement is expected around mid-October, at which time the specific scale and method of the shareholder return policy will be detailed. The treasury share buyback will take place over three months, from August 21 to November 19.

"They said they would announce the scale and method at the Q3 earnings release. So, with Q3 ending, the earnings release will be around mid-October, and that's when this issue will become prominent."

SK Hynix held a board meeting on the 19th, approved the agenda for treasury stock acquisition and retirement, and disclosed its shareholder return plan. The board judged that the current stock price does not fully reflect the company's intrinsic value compared to its business competitiveness and cash-generating ability.

"Yesterday and the day before, the board of directors held a meeting and approved the agenda for treasury stock acquisition and retirement, and disclosed the shareholder return plan."

As of the 18th, SK Hynix plans to acquire 24.07 million shares, equivalent to 1,662,000 won per share. This represents 3.3% of the total outstanding shares of 734,923,656 shares.

"They announced on the 18th, before the 19th, that they would acquire 24.07 million shares at 1,662,000 won per share, which is 3.3% of the 734,923,656 total outstanding shares."

Following SK Hynix's announcement of 40 trillion won in shareholder returns, Samsung Electronics is also considering a shareholder return policy of an equivalent or even larger scale. The market is speculating that Samsung Electronics might announce shareholder returns exceeding 150 trillion won.

"What about Samsung Electronics? Their scale is even larger. Samsung Electronics said it would match and double SK Hynix's 40 trillion won bet."

With total domestic power demand projected to reach 165 GW by 2040, it has been revealed that fully operating six semiconductor fabs requires power equivalent to 19 nuclear power plants. Samsung Electronics and SK Hynix each plan to build more than two additional fabs by 2040.

The Ministry of Climate, Energy, and Environment held a public policy debate at the National Assembly building for the establishment of the 12th Basic Plan for Long-term Electricity Supply and Demand, announcing that Korea's maximum power demand would reach 165 GW by 2040. This is a sharp increase of 27 GW from the 138.2 GW forecast in April.

"The Ministry of Climate, Energy, and Environment held the 12th basic electricity supply and demand plan at the National Assembly building. They hosted a public policy debate and announced that Korea's power demand would reach a maximum of 165 GW by 2040."

The nearly 20% surge in electricity demand is primarily attributed to AI data centers and 24-hour full operation of semiconductors. The maximum increase in power demand by 2040 is 26.8 GW, requiring the operation of more than 19 nuclear power plants. The government has announced a plan to abolish all coal-fired power plants by 2040 and switch to other power sources.

"Electricity demand is also surging by nearly 20%. The maximum increase in electricity demand by 2040 is 26.8 GW, requiring more than 19 nuclear power plants. They've stated a plan to eliminate all coal-fired power plants by 2040 and switch to other power sources."

Early this morning, President Lee Jae-myung and SK Chairman Choi Tae-won had a private dinner. This dinner was arranged to exchange views on domestic and international investment issues amid increasing demands from the Donald Trump administration for local semiconductor investment in the U.S. This was their first solo meeting in about two months since June.

"This news came out at 4 AM today. It was released at 4 AM this morning. Early this morning, President Lee Jae-myung and SK Chairman Choi Tae-won had a private dinner yesterday. They exchanged views on domestic and international investment issues amidst increasing demands from the Donald Trump administration for local semiconductor investment."

Analyst Jo Seon-il claimed that a specific stock, recommended during a public YouTube broadcast on August 7, yielded a profit of over 151% in just seven trading days. He emphasized that there are many opportunities to achieve unexpectedly high returns outside the market's focus.

"On August 7th, I recommended this on a public YouTube broadcast, and after it hit the upper limit and surged, it yielded over 151% profit in just seven trading days. This means profits are being made in places you wouldn't expect or imagine."

The predecessor of Kosmo Advanced Materials was Saehan Media, which restructured its business to escape the crisis of a sunset industry, taking on its current form. This past case suggests that the value of a company can change significantly with the times.

"What was Kosmo Advanced Materials originally? What was the predecessor of Kosmo Advanced Materials? Yes. It wasn't Kosmo Chemical. What was the company's name before Kosmo Advanced Materials? It was Saehan Media."

Saehan Media changed its name to Kosmo Advanced Materials after its acquisition by Kosmo Chemical. It then boldly transitioned from the video tape manufacturing business to the secondary battery materials business, escaping the risk of delisting and surging more than 400 times by riding the secondary battery theme.

"After changing its name to Kosmo Advanced Materials, and naturally, being an advanced materials company, what happened? They decided to switch to a business that would be a huge success in the future, not their current one. So, after much deliberation and thought, what did they switch to? What did they switch to right away? Yes, they switched to the secondary battery business."

Samsung Electronics and SK Hynix are planning to build a total of six semiconductor fabs in the Honam region, specifically Gwangju, by 2040. This project involves a total investment of 1,350 trillion won, which is an additional investment decided on top of the existing 900 trillion won.

"Samsung Electronics and SK Hynix are planning to build six semiconductor fabs of enormous scale in the Honam region, especially Gwangju, by 2040. This will involve an investment of about 1,350 trillion won."

Analyst Jo Seon-il stated that 'Haein,' a construction equipment company not directly related to semiconductors, yielded a profit of over 151% in just seven trading days after being recommended on August 7. Haein was introduced as a robust company that survived the real estate PF crisis and boasts a high reserve ratio of over 2000%.

"I told you about a company called Haein. It has nothing to do with semiconductors. I recommended a company unrelated to semiconductors on August 7th, and in just 7 trading days, it yielded over 151% profit."

There is a possibility that companies that were on the verge of delisting could surge due to indirect benefits from large-scale semiconductor investments. Analyst Jo Seon-il announced that he is currently preparing a stock that will rise more than 100 times, surpassing 'Haein'.

"A company that was on the verge of delisting will surge, receiving indirect benefits from that, and a stock that goes up more than 100 times will emerge."