Treasury Share Disposal for Stock Option Exercise (2022 Grant)
Original: 주요사항보고서(자기주식처분결정)
Summary
SK Hynix is disclosing the disposal of up to 114,209 treasury shares to fulfill stock options originally granted at the March 2022 AGM, triggered by the first exercise of those options. The exercise price is set at KRW 124,220 per share, implying a total potential disposal value of approximately KRW 14.19 billion. The actual confirmed amount is currently only 191 shares (for one retired executive who exercised 210 options), with the remaining 113,999 shares contingent on future option exercises through the deadline of March 30, 2027. The expected dilution effect is negligible at under 0.02% of total shares outstanding, and shares will be transferred directly from the company's treasury account to recipients' personal accounts rather than sold on the open market. This is a routine compensation-related disclosure with minimal market impact.
Full Translation
Material Event Report (Treasury Share Disposal Decision)
SK Hynix
Material Event Report / Mandatory Exchange Filing
To: Financial Services Commission / Korea Exchange
Date: May 13, 2026
Company Name: SK Hynix Inc.
Representative Director: Kwak No-jeong
Head Office: 2091 Gyeongchung-daero, Bubal-eup, Icheon-si, Gyeonggi-do
Phone: 031-5185-4114
Website: http://www.skhynix.com
Responsible Officer: (Title) Head of Finance Division, (Name) Kim Woo-hyun, (Phone) 031-5185-4114
Treasury Share Disposal Decision
1. Shares to be disposed: Common stock – 114,209 shares; Other – none
2. Price of shares to be disposed (KRW): Common – 124,220; Other – none
3. Total expected disposal amount (KRW): Common – 14,187,041,980; Other – none
4. Disposal period: Start date May 20, 2026 / End date March 30, 2027
5. Purpose of disposal: Disclosure of the entire share allocation from the same AGM grant, triggered by the first exercise of stock options
6. Method of disposal: Market sale – none; Block trade – none; Off-market disposal – none; Other – 114,209 shares
7. Counterparty: Executives (including retired executives)
8. Brokerage agent: SK Securities Co., Ltd.
9. Treasury share holdings before disposal: Acquired within distributable earnings – Common 1,630,448 shares (0.2%); Other – none; Other acquisitions – none
10. Date of disposal decision: May 13, 2026
- Outside director attendance: none
- Auditor (non-outside director audit committee member) attendance: none
11. Daily sell-order quantity limit: Common – none; Other – none
12. Other items for investment reference:
※ This disclosure is filed pursuant to Article 5-9 of the Regulations on Issuance and Disclosure of Securities. Upon the first exercise of stock options granted at SK Hynix's 2022 AGM (March 30, 2022), the company is required to disclose all shares granted at that same AGM as the planned disposal amount. The currently confirmed amount of granted shares is 191 shares (applicant: 1 retired executive).
- Regarding item 1 (planned disposal shares): Per Article 5-9, the disclosed quantity is the total shares granted at the 2022 AGM minus shares for which rights have lapsed, totaling 114,209 shares. The disposal quantity will be confirmed/paid upon future stock option exercises.
- The most recent option exercise was 210 shares; based on the difference between the closing price on the exercise date and the exercise price, 191 treasury shares have been confirmed for grant, to be paid after deduction of taxes and withholding amounts.
- The 113,999 shares within exercisable options for which disposal has not yet been confirmed may vary depending on future option exercises and settlement methods.
| Category | Exercisable Options | Exercised Quantity | Undetermined Disposal | Exercise Price | Exercise Period |
| 2022 Grant | 114,209 shares | 210 shares | 113,999 shares | KRW 124,220 | until 2027-03-30 |
| Total | 114,209 shares | 210 shares | 113,999 shares | | |
* Exercise quantity and price have been adjusted to reflect treasury share cancellations.
- The "price of shares to be disposed" in item 2 is the exercise price of the stock options.
- The "expected disposal amount" in item 3 is calculated as item 1 × item 2; actual disposal price and amount may vary based on the disposal date.
- Regarding item 5 (purpose): The company pays stock option holders the cash-equivalent value in treasury shares corresponding to the spread upon exercise.
- Regarding item 6 (method): Shares will be transferred from the company's treasury share account directly to the recipient's personal share account.
- Pursuant to Article 176-2 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act, no separate board resolution is required.
【Treasury Share Holdings Before Disposal Decision】 (Unit: shares)
Acquisition method – Direct on-market acquisition within distributable earnings:
Common stock: Beginning balance 17,377,728; Acquired 0; Disposed 447,280; Cancelled 15,300,000; Ending balance 1,630,448.
All other acquisition methods (off-market, public tender, trust-based, other): nil.
Grand total – Common: 17,377,728 / 0 / 447,280 / 15,300,000 / 1,630,448.
※ Holdings are reported pursuant to Article 165-3 of the Financial Investment Services and Capital Markets Act and Article 176-2 of its Enforcement Decree. The 1,217,026 remaining exchangeable treasury shares from the exchangeable bonds issued on April 11, 2023 are treated as disposed on the issue date and are currently deposited with the Korea Securities Depository.
- "Beginning balance" is as of the start of the fiscal year (January 1, 2026); "Ending balance" is as of the filing date (May 13, 2026).
【Additional Disclosure Items】
1. Relationship of counterparties to the company or largest shareholder: Holders who exercised stock options granted at the 2022 AGM (March 30, 2022).
2. Reason for counterparty selection: Stock options granted at the 2022 AGM.
3. Disposal shares per counterparty: Quantity of stock options granted at the 2022 AGM.
4. Basis for price calculation: Exercise price of stock options granted at the 2022 AGM.
5. Expected stock value dilution: The planned treasury share disposal represents less than 0.02% of total shares issued, so the dilution effect is negligible.
6. Other reference items for investment judgment: None.
+1.49%
Jan 28, 2026
₩841,000
₩900,000
+7.02%
Oct 29, 2025
₩558,000
₩579,000
+3.76%
Jul 23, 2025
₩269,000
₩263,500
-2.04%
Past performance does not guarantee future results. Small sample sizes may not be representative. For informational purposes only.