SK hynix (000660.KS) will carry out a quarterly cash dividend of about 260 billion won while disposing of treasury shares to pay compensation to executives and outside directors.
SK hynix disclosed on Wednesday that it had decided on a quarterly cash dividend of 265.76 billion won ($195 million). The dividend per share is 375 won, with the record date set for May 31. The company will determine eligible shareholders based solely on the record date, without closing the shareholder registry. The dividend is scheduled to be paid within one month of the record date.
The company also announced the same day that it will dispose of treasury shares worth 15.34 billion won ($11.3 million) to pay compensation to executives and outside directors. The number of shares to be disposed of is 12,536 common shares, at a disposal price of 1.224 million won, the closing price on the day before the board resolution.
The treasury share disposal is intended for stock-based compensation for outside directors and for share delivery related to the exercise of long-term incentive awards. The recipients are six outside directors in service as of the payment date and three executives exercising their rights under long-term incentive contracts. Some retired executives are also included.
The shares will be delivered through off-market transactions between May 23 and May 22. The shares will be transferred directly from the company's treasury stock account to the recipients' personal accounts, with actual payment scheduled after May 4.
SK hynix explained that the treasury share disposal represents less than 0.01% of total shares outstanding, making the dilution effect limited.
Meanwhile, domestic stock markets closed higher on the day. According to the Korea Exchange, the KOSPI closed at 6,417.93, up 29.46 points or 0.46% from the previous trading day. SK hynix shares ended the session at 1.223 million won, down 0.08%.
Earlier, Samsung Electronics (005930.KS) paid dividends of 566 won per common share and 567 won per preferred share on the 17th of this month. The total dividend amount was 3.75 trillion won ($2.76 billion).
Samsung Electronics Executive Chairman Jay Y. Lee, who held 97,414,196 shares as of the end of last year, is estimated to have received approximately 55.1 billion won ($40.5 million) from this year-end dividend.
