SK Square will return to shareholders at least 4.3 trillion won of dividend income it receives from SK hynix. It is the biggest amount since its launch in 2021.

SK Square disclosed its 2027 shareholder return plan containing the details on Monday.

SK Square will use at least 4.3 trillion won for shareholder returns from more than 6.2 trillion won in dividend income to be generated from SK hynix cash dividends. It also decided to return at least 60 percent of recurring dividend income to shareholders through 2028. That is twice the level of at least 30 percent of recurring dividend income presented in its existing 2026-2028 shareholder return policy.

It will return all special dividend income to shareholders. It will use 100 percent of special dividend income related to Kioxia generated under SK hynix' shareholder return plan announced on Oct. 28 for shareholder returns.

The existing shareholder return policy returned at least 30 percent of recurring dividend income and some investment gains to shareholders. SK Square converted 5.89 trillion won in capital reserves into retained earnings earlier this year to secure a financial foundation for shareholder returns.

All details of the shareholder return plan will be finalised through related procedures after the company confirms its financial statements for this fiscal year.

An SK Square official said the announcement of the shareholder return plan shows the board's firm willingness to enhance shareholder value. The official added the company will also carefully prepare new investments based on reasonable capital allocation principles.