SK hynix logs record Q3 2026 operating profit, plans shareholder return

SK hynix, a major South Korean memory chip manufacturer, announced on Wednesday, October 28, 2026, a record operating profit of 83.33 trillion won ($62.8 billion) for the third quarter of 2026. This marks the company’s highest-ever quarterly earnings, driven by robust demand for high-bandwidth memory (HBM) chips and other high-value-added memory products.The company’s revenue for the July-September period also reached a record 104.6 trillion won, the first time its quarterly revenue has surpassed 100 trillion won. Revenue surged by 328 percent year-on-year, while operating profit soared by 632 percent. The operating profit margin for the three-month period stood at 80 percent.SK hynix attributed its strong performance to growing shipments of high bandwidth memory 4 (HBM4) and a sharp increase in server memory sales, which boosted its DRAM business. In the NAND sector, sales of enterprise solid-state drives (eSSDs) also contributed to growth, particularly for data centers.

Shareholder returns and future plans

In response to its strong earnings and to address the mismatch between its share price and performance, SK hynix unveiled a significant shareholder return plan. For the 2026 fiscal year, the company intends to return approximately 100 trillion won to shareholders. This includes at least 30 trillion won in cash dividends and over 60 trillion won through share buybacks and cancellations, building on a recently completed 40 trillion won repurchase program.During its board meeting on Wednesday, October 28, 2026, the company approved a third-quarter cash dividend of 14 trillion won, equivalent to 20,000 won per share. This dividend includes a 10,000 won special dividend reflecting gains from the company’s investments in Kioxia, a Japanese flash memory manufacturer.Looking ahead, SK hynix plans to further advance its manufacturing processes next year. The company will increase the share of its sixth-generation 10-nanometer-class (1c) DRAM process and aims to bring its M15X plant to full production capacity by the end of 2026 to boost HBM4 output. It expects HBM4 to become its main HBM product in the fourth quarter, surpassing the previous generation HBM3E in both shipment volume and revenue.

Global memory shortage and Solidigm IPO

SK hynix anticipates that the global memory supply shortage will likely persist through 2030. The company projects steady growth in the global AI data center infrastructure market, as artificial intelligence (AI) investments expand beyond major companies to businesses across various industries and national governments.The company also stated that more than 50 percent of its production capacity for 2027 and 2028 is covered by long-term agreements signed with 14 major global cloud service providers.Separately, SK hynix announced on October 23, 2026, that it had suspended plans to list its U.S. subsidiary, Solidigm, citing market conditions and shareholder opposition. Reports had circulated that Solidigm was considering an initial public offering (IPO) in the United States, potentially valuing the subsidiary at up to $150 billion. Concerns over the potential undermining of minority shareholder interests and regulatory scrutiny contributed to the decision. SK hynix shares had fallen nearly 30 percent in the three months following its second-quarter earnings announcement.

Nepal’s connection to South Korea’s labor market

South Korea remains a significant destination for Nepali migrant workers. From 2008 to July 17, 2026, over 125,021 Nepalis found employment in South Korea through the Employment Permit System (EPS). Currently, more than 46,600 Nepalis are working in the country.For 2026, South Korea aims to employ 7,200 Nepali workers under the EPS system, with quotas for manufacturing, agriculture and livestock, services, and forestry sectors. The application process for the Korean language test for 2026 was open from July 27 to August 2. Starting January 2027, the minimum monthly salary for Nepali workers is expected to reach approximately 230,546 rupees.