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SEOUL, Aug. 19 (Yonhap) -- SK hynix Inc. said Wednesday it will buy back 24.07 million common shares worth 40.43 trillion won (US$28.82 billion) as part of a shareholder return plan.

The share buyback is aimed at enhancing shareholder value through the cancellation of treasury stocks, the South Korean tech giant said in a regulatory filing.

The company will acquire the shares from Thursday to Nov. 19 and cancel all of them after the buyback is completed.

The cancellation will be the largest of its kind among listed companies in South Korea.

The leading memory chipmaker said it decided on the share buyback after determining that its stock was undervalued relative to its intrinsic value.

The company also said it plans to spend at least 50 percent of its free cash flow generated from 2025 to 2027 on shareholder returns.

The latest move also represents an early implementation of its shareholder return policy announced earlier.

In November last year, SK hynix announced plans to return up to 50 percent of its cumulative free cash flow generated over the three-year period from 2025 to 2027.

"During the policy period, we plan to pursue additional shareholder returns through a combination of share buybacks and cancellations and dividends, taking into account cash flow, market conditions and distributable profits," a company official said on condition of anonymity.

Shares of SK hynix, listed on the benchmark Korea Composite Stock Price Index, have nearly tripled since the beginning of the year, although they have recently shown heightened volatility.

The stock plunged 9.75 percent to 1.5 million won on Wednesday.

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