Good morning, and thank you for attending SK hynix earnings release conference call. Today, we will begin with SK hynix's earnings presentation, followed by a Q&A session. Please press star one, that is star and one, if you have any questions. Please note that the presentation will be interpreted simultaneously, and Q&A session will be interpreted consecutively. With that, we are now ready to begin. Good morning, afternoon, and evening. This is Park Seong-hwan, Head of IR at SK hynix. Welcome to the SK hynix 2026 third quarter earnings release conference call. Allow me to introduce the executives present here with me today. We are joined by President and CEO Kwak Noh-Jung, CFO Kim Woo-hyun, Head of DRAM Marketing Park Joon-deok, Head of NAND Marketing Song Chang-seok, and Head of HBM Sales and Marketing Kim Ki-tae. Let me issue a disclaimer that our third quarter results included in this conference call are consolidated figures and provisional in nature, as the external auditor's review has not yet been completed. Accordingly, they remain subject to change. In addition, forward-looking statements including market outlook and the company's plans may vary depending on changes in macroeconomic and market circumstances. With that, we will now begin SK hynix earnings release conference call for the third quarter of 2026. Before we begin the earnings presentation, CEO Kwak Noh-Jung will first speak on the Solidigm IPO and shareholder returns. Following this, CFO Kim Woo-hyun will present third quarter earnings, the company's future plans, and market outlook. Good morning, everyone. This is CEO Kwak Noh-Jung. I would like to express my sincere gratitude to our shareholders for your unwavering interest and trust in SK hynix, even amid the recent heightened market volatility. Today, I would like to speak directly to you about our decision regarding Solidigm's IPO, which has recently attracted considerable market attention, and a special dividend to share the returns on our strategic investment with our shareholders. First, Solidigm has been exploring financing options to support initiatives, such as expanding its manufacturing footprint to meet demand growth. Among the options considered, raising external capital through an IPO was expected to ease our investment burden and increase our capacity for shareholder returns. However, after carefully considering recent financial market volatility and the correction in semiconductor stocks, Solidigm has concluded that an IPO would not fully deliver the anticipated benefits at this time and has therefore decided to discontinue its review of potential pre-IPO and IPO options. Solidigm will continue to strengthen its competitiveness and pursue growth opportunities in the AI data center storage market. Investments and financing arrangements to support these efforts will be pursued in a manner that enhances the corporate and shareholder value of both Solidigm and SK hynix. We have upheld the principle of sharing the majority of the returns from our strategic investments with our shareholders. By using those returns to replenish our capacity for shareholder returns, which may temporarily decline as we invest for the future, we aim to protect our shareholders' interests while continuing to invest boldly in sustainable growth. In line with this principle, we intend to return the gains realized from our investment in Kioxia this year to our shareholders through a special dividend. We will remain steadfast in this commitment, ensuring that our shareholders directly benefit from the success of our strategic investments. Our Chief Financial Officer will now present this quarter's results and outlook, along with the details of our shareholder return plan. Thank you. Good morning, everyone. This is CFO Kim Woo-hyun. Allow me to first introduce the company's performance for the third quarter of 2026. In the third quarter, tight supply and demand conditions continued due to growing demand for AI memory, leading to sustained rise in memory prices. Both DRAM and NAND recorded high price increase rates for a second consecutive quarter, driven by continued price hikes centered on HBM, server DRAM, and enterprise SSD. Consequently, third quarter revenue increased by 32% quarter-on-quarter and 328% year-on-year, reaching KRW 104.6 trillion. This marks the first time quarterly revenues surpassed KRW 100 trillion, setting a new record high. For DRAM, we expanded sales centered on AI servers, achieving sequential bit shipment increase of approximately 10% as planned. In particular, full-scale mass production and shipments of HBM4 commenced in the third quarter. Additionally, shipments of server DDR5 increased by over 40% compared to Q2, driving overall growth in DRAM bit shipments. With continued strength in conventional DRAM prices and an expanding sales mix of HBM4, which commands higher prices than the prior generation, DRAM ASP rose by high 20%, recording a high growth rate similar to the previous quarter. For NAND, although bit shipments decreased slightly compared to Q2 as we adjusted sales to focus on high value-added products such as 321-layer TLC enterprise SSDs, ASP rose by mid-20% due to overall price strength and an expanded SSD mix. Despite unfavorable exchange rate effects due to the strong Korean won, product price increases and the expanded sales of high value-added products led to an operating profit of KRW 83.3 trillion for the third quarter. This represents a 38% increase quarter-on-quarter and a 632% increase year-on-year. Operating profit margin also improved by three percentage points quarter-on-quarter to reach 80%, setting new all-time quarterly records for both operating profit and operating profit margin. In the third quarter, depreciation and amortization expenses totaled KRW 4.3 trillion. EBITDA reached KRW 87.7 trillion with an EBITDA margin of 84%. Regarding major non-operating items, foreign exchange related net loss of KRW 11.6 trillion due to exchange rates decline and valuation losses on investment assets of KRW 22.9 trillion were reflected, resulting in total net non-operating expenses of KRW 32.6 trillion. Consequently, income before tax was KRW 50.7 trillion, net income was KRW 39.8 trillion, and net profit margin was 38%. As of the end of the third quarter, cash and cash equivalents stood at KRW 114.5 trillion, an increase of KRW 26.5 trillion from the end of the previous quarter. Interest-bearing debt decreased by KRW 2.8 trillion to KRW 15.8 trillion. As a result, net cash expanded to KRW 98.7 trillion and debt to equity ratio improved by two percentage points compared to the end of the previous quarter to 5%. Next, I will discuss the market outlook. The AI market is evolving endlessly as AI leads to productivity improvements and new revenue generation in various areas such as software development, customer response, and search. A virtuous cycle is forming where increased AI usage leads to further infrastructure investment. Such changes are evident in the scale of investment and the power capacity secured by major global cloud service providers. According to recent estimates from market research firms, global CSP CapEx is projected to grow by more than 60% in 2027, while secured power capacity is also expected to increase by over 100% year-over-year. More notably, this growth will not stop next year. The global AI data center infrastructure market is expected to grow at a high annual growth rate of 40% until 2030, driven by the commercialization of AI services and the expansion of application areas. This mid to long-term growth trend is expected to continue. In particular, as AI plans complex tasks and carries them out over extended periods using multiple tools, AI compute requirements and the volume of data generated, transferred, and stored are rising sharply. Consequently, demand growth across the entire memory sector is significantly exceeding initial expectations. AI infrastructure investment is now moving beyond the initial phase, which relied on preemptive spending by a handful of players as participation broadens to include more enterprises and national governments. Accordingly, even allowing for some potential investment adjustments, we expect growth in AI infrastructure investment to remain robust. In the short term, enterprise and personal AI are expected to lead demand growth, while in the mid to long term, physical AI such as autonomous driving and robotics is expected to broaden the scope of demand. While shipment volumes for PCs and mobile devices are expected to decrease due to cost burdens from rising memory prices and supply shortages, AI infrastructure demand growth is expected to more than offset this decline, sustaining growth in the overall memory market. On the other hand, memory supply cannot keep pace with this level of demand growth. Thus, we expect it to be difficult to fully meet customers' volume requirements in the near term. Given the complexities involved in implementing leading-edge processes and the lead times required to construct new production facilities, a situation where supply cannot keep up with demand is expected to persist for some time, a constraint projected to continue through 2030. Despite the high level of demand, considering actual supply conditions, achievable demand growth for 2027 is expected to be at a similar level to this year, with growth rates of mid-20% for DRAM and high teen percent for NAND. We expect this favorable market environment to be a strong foundation supporting the company's earnings growth next year as well. Based on our expanded production capacity and competitiveness in high value-added products, we plan to achieve results at a significantly higher level, both in terms of absolute revenue and profit. Next, I will discuss the company sales plan for the fourth quarter and our future operational direction. In the fourth quarter, we plan to further accelerate supply expansion to respond more proactively to market demand. First, for DRAM, production increases due to the expansion of 1Z nanometer process and increased HBM4 production through N15X ramp-up will occur simultaneously. Consequently, fourth quarter shipment volume is expected to grow meaningfully by mid 20% sequentially. For conventional DRAM, we are rapidly increasing the portion of 1Z nanometer products for server applications. In the fourth quarter, we plan to further strengthen our portfolio centered on high value-added server products by expanding sales of 1Z nanometer-based DDR5 and AI server LPDDR5 SOCAMM. Our shipments of 12-high HBM4 are proceeding smoothly according to the schedule agreed with our major customers. To actively respond to surging customer demand, we are accelerating M15X ramp and plan to reach full capacity by the end of the year. Accordingly, in the fourth quarter, HBM4 is expected to surpass HBM3E in both its share of total HBM shipment volume and revenue, establishing it as our flagship product. The company has finalized negotiations with major customers for next year, including HBM volume and prices. These negotiations faithfully reflect the increased product value of HBM4. As a result, we expect the profitability gap between HBM and conventional DRAM to narrow meaningfully. For NAND, we plan to expand the portion of our flagship 321-layer process to over 50% of domestic capacity in the fourth quarter. Through this, we will expand the supply of 321-layer TLC enterprise SSDs. Fourth quarter NAND bit shipments are expected to increase by mid-single percent sequentially. Building on the supply expansion, we plan to further broaden the role and business opportunities of NAND in the AI infrastructure market. We will expand the supply of high performance, high density eSSDs suited for KV cache tiering. In the mid to long term, through HBF and system optimization technologies, we aim to evolve NAND into a core solution that enhances AI service throughput and cost efficiency. To improve visibility into mid to long-term demand and secure a stable growth foundation, we are continuously expanding long-term agreements with customers. To date, we have signed LTAs with 14 key customers, including major global CSPs. While LTAs typically operate on a five-year basis, we are proactively discussing extension of existing contract periods with some customers. The fact that customers are requesting longer term collaboration based on our product roadmap and supply capabilities indicate that LTAs are evolving to strengthen customer relationships and business continuity. While pricing structures vary by customer and product, they are generally designed to reflect market conditions within a price range agreed upon with the customer. Furthermore, to ensure that customers' purchase plans lead to actual orders and shipments, we have included safeguards such as deposits. This structure not only supports our stable profitability, but also allows us to capture opportunities from market improvements by reflecting improvements in market prices and product value. The volume secured under LTAs currently account for more than 50% of our total capacity for 2027 and 2028, establishing a foundation for mid to long-term profit stability and demand visibility. Meanwhile, to respond to mid to long-term customer demand and growth opportunities, we are continuously pursuing investments to expand production capabilities. We expect CapEx in 2027 to increase significantly compared to 2026 as we invest in equipment to expand the share of leading-edge processes and ramp up our first fab in Yongin while domestic and overseas infrastructure investments accelerate. The scale and execution timing of investment will be determined by considering mid to long-term demand visibility secured through customer discussions, product competitiveness, profitability, and investment efficiency. Finally, let me explain shareholder returns. Last August, we announced the shareholder return plan, including KRW 40 trillion of share acquisition and cancellation, and indicated that we would provide details on the size and method of additional shareholder return in the third quarter earnings call. Today, let me provide an update on the implementation of that plan and outline additional shareholder returns that reflect our improved business performance and investment results. The company has decided to pursue shareholder return of approximately KRW 100 trillion through the 2026 fiscal year. We plan to execute cash dividends of KRW 30 trillion or more, and share acquisition cancellations of KRW 60 trillion or more, including the KRW 40 trillion announced in August. Of this, the KRW 40 trillion share acquisition was completed last week and will be canceled shortly. Through dividends, we will directly share the results of our earnings with shareholders and continuously acquire and cancel shares to ensure that the per-share value appropriately reflects our intrinsic value. Through this, we will fulfill our promise to return over 50% of free cash flow to shareholders. Today, the board of directors resolved on cash dividends of KRW 14 trillion and a share acquisition of KRW 20 trillion. Of this, treasury shares to be utilized for executive and employee compensation is expected to be approximately KRW 10 trillion. Excluding this, shareholder return for the third quarter is approximately KRW 24 trillion. I will now provide details on each. First, we are expanding cash dividends to reflect earnings improvement and investment results. We will determine dividend levels based on operating performance, and in cases where substantial investment gains occur, we will share those results additionally with shareholders through special dividends. We will utilize the results not only from the growth of our core business, but also the realization of value from our invested assets as a source of shareholder returns. Accordingly, dividend for third quarter has been decided at KRW 20,000 per share, totaling KRW 14 trillion. This consists of a KRW 10,000 dividend reflecting earnings improvement and a KRW 10,000 special dividend to share the investment results from Kioxia. We plan to return most of the gains from our investment in Kioxia to shareholders through a special dividend. A portion will be paid as part of this quarter's dividend, with the remainder included in the year-end dividend once our financial results for FY 2026 have been finalized. Second, we will continue to acquire shares each quarter. The size of quarterly share acquisition will be determined through board resolutions that consider share price, market conditions, and cash flow. This quarter, we plan to acquire a total of KRW 20 trillion of shares. Of this, KRW 10 trillion is acquired for shareholder return purposes will be canceled in full. The KRW 10 trillion acquired for executive and employee compensation purposes, as mentioned earlier, is not included in the 2026 fiscal year shareholder return amount. Moving forward, based on robust memory demand growth and the company's technological competitiveness, we will generate results in a stable manner and consistently share them with shareholders. Thank you. With that, we are now ready to take your questions. Now Q&A session will begin. Please press star 1, that is star and 1, if you have any questions. Questions will be taken according to the order you have pressed the number star 1. For cancellation, please press star 2, that is star and 2 on your phone. The first question will be provided by Peter Lee from Citigroup. Please go ahead with your question. Congratulations on the performance. My question is with regards to the AI investment. We see that the AI investment continues to grow, but then it seems as if the monetization following the AI demand or the AI infrastructure build-out is slow to be realized. As a result, there are some concerns in the market over the sustained AI demand. Against this backdrop, my question is, what is the company's basis for believing that the AI investment momentum will continue? Thank you for the question. We do understand that there is some discussion about pacing investment in AI, but we view this as part of the process where our customers are more closely examining the feasibility and profitability of individual projects and defining the timing and pace of investment. There are 2 main reasons behind our view that the AI investment momentum will continue. 첫째는 고객의 AI 투자가 실제로 AI 서비스 활용 확대로 이어져 사업 성과로 나타나고 있다는 점입니다. First, we are seeing customers' AI investment actually leading to greater adoption of AI services and producing business results. 주요 하이퍼 스케일러 고객들은 최근 실적 발표에서 클라우드 부문 매출이 전년 대비 약 30%에서 80%까지 성장했다고 밝혔으며, 이 중 상당 부분이 AI 사업 확대에 기인하는 것으로 보고 있습니다. In their latest earnings release, major hyperscaler customers reported year-over-year growth of 30%-80% in their cloud revenue, a substantial portion of which we believe is coming from expansion of their AI business. 대규모 기업용 AI 솔루션 장기 계약이 늘어나고 있고, 동시에 클라우드 수주 잔고 역시 전년 대비 약 2배에서 5배 증가한 것으로 나타납니다. AI 서비스 유료 사용자도 꾸준히 증가하는 등 주요 고객의 AI 관련 매출 성장과 재무 성과가 다방면에서 확인되고 있습니다. We are seeing more long-term contracts for large-scale enterprise AI solutions as well, while cloud order backlogs have grown two-fold to five-fold year-over-year. Paying users are steadily increasing as well, confirming growth in major customers' AI-related sales and financial performance across multiple areas. 이러한 흐름을 감안하면 대형 고객의 AI 사업 매출과 현금 흐름은 지속적으로 개선될 것으로 생각하며, 그에 따라 시장에서 우려하는 투자 부담도 점차 안정화될 것으로 전망합니다. Given this trend, major customers' AI sales and cash flow will only improve, which will also help ease the current market concerns on investment burden. 또한 멀티사이트 구축, 전력 확보가 용이한 중소형 데이터센터의 확대, 그리고 자가 발전 및 냉각 기술 고도화 등 제약을 극복하기 위한 고객들의 다양한 대안도 투자 부담 완화에 도움이 될 것으로 예상합니다. At the same time, customers are working at various angles to ease current constraints, such as multi-site deployment, small or mid-sized data centers for which power is more readily available, and upgrading on-site power generation and cooling technology, which will help ease the investment burden. 둘째는 투자 주체가 구조적으로 다변화되고 있다는 점입니다. Second reason is that the investor base is becoming structurally more diverse. 초기 AI 투자는 소수 빅테크에 집중되어 있어 특정 기업의 투자 조정이 곧 전체 수요 변동성으로 직결되는 구조였습니다. 하지만 이제는 클라우드 사업자뿐 아니라 일반 기업의 자체 AI 인프라 구축, Sovereign AI 투자, 그리고 온프레미스 수요에 이르기까지 투자 기반이 빠르게 넓혀지고 있습니다. 이에 특정 주체가 투자 속도를 조절하더라도 다른 분야의 수요 확대가 이를 보완할 수 있는 구조로 바뀌고 있습니다. Early AI investment was concentrated among the big tech, so a single company adjusting its investment could directly result in overall demand volatility. But today, the investor base is rapidly broadening, also including non-tech companies investing in their own AI infrastructure, Sovereign AI, or on-prem demand. This marks a structural shift where investment adjustment by some would be offset by increased demand from others. 예를 들어 금리 부담으로 일부 프로젝트 투자가 둔화되더라도 정책 기반의 Sovereign AI 투자나 기업의 AI 도입 확대가 그 공백을 메울 수 있습니다. 다양한 주체가 서로 다른 동기와 재원을 가지고 참여하는 다층적 구조에 기반하게 되어 전체 투자 흐름에 특정 기업의 재무 여력이나 투자 조정이 미치는 영향은 줄어들고 있습니다. For example, even if investment in some projects slows due to interest rate pressure, policy-backed Sovereign AI investment or a broader corporate AI adoption can still fill the gap. With a multilayered structure involving diverse participants with different motivations and resources, any single company's financial capacity or investment moderation affecting the overall investment trend is becoming limited. 종합하면 AI 투자와 수요 강도는 실제 사업 성과와 투자 주체의 다변화를 기반으로 충분히 견조할 것으로 보며, 메모리 시장도 수요가 공급을 압도하는 구조적 수급 불균형이 당분간 이어질 것이라 전망합니다. In sum, AI investment and demand intensity will remain sufficiently robust, supported by real business results and more diversified investment. Also, in the memory market, we expect the current structural supply-demand imbalance, where demand outpaces supply, to continue for the time being. 네, 다음 질문해 주십시오. 다음으로 질문해 주실 분은 메리츠증권의 김선우 님입니다. The following question will be presented by Sunwoo Kim from Meritz Securities. Please go ahead with your question. 안녕하세요. 메리츠증권의 김선우입니다. 우선은 훌륭한 실적 다시 한번 축하드립니다. 또한 최근에 현안에 관해서 설명해 주신 곽노정 CEO님에게도 설명 감사하다는 말씀 드리고 싶습니다. 저는 주주 환원 관련해서 질문을 드리겠습니다. 총 주주 환원 내에서 배당과 그리고 자기 주식 매입, 그 비중을 나누는 회사 측의 기준이 무엇인지 있으시다면 말씀 좀 부탁드리겠습니다. 감사합니다. Thank you. I would also like to congratulate the company on the outstanding performance, and I would like to especially thank the CEO, Kwak No-Jung for the briefing on the company's update. My question is with regards to the shareholder return. What is the basis for the company to determine the proportion between the dividend payout and share acquisition out of the total shareholder return? 네, 질문 주셔서 감사합니다. 답변드리겠습니다. 저희는 일단 개선된 경영 실적을 주주 여러분께 직접 공유드리는 현금 배당하고, 그리고 유통 주식 수를 줄여서 주당 가치를 높이는 자기 주식 매입 소각을 균형 있게 활용하고자 했습니다. Thank you very much for the question. For us, we sought to balance between cash dividend and share acquisition and cancellation, or meaning between the direct way of sharing our improved performance with shareholders and raising the value per share by reducing the number of outstanding shares. 먼저 현금 배당은 일단 실적 개선을 반영하면서도 당사의 과거 배당 수익률과 글로벌 주요 성장 기업들의 배당 수익률, 그리고 적정 보유 현금 수준 등을 종합적으로 고려했고, 앞으로도 안정적으로 이어갈 수 있는 수준으로 결정하였습니다. First, we decided on cash dividend at a level that will be sustainable. For this, we reflected our performance improvement as well as our historical dividend yield, global peers dividend yield, and appropriate level of cash holding. 또한 유의미한 투자 수익이 발생했을 경우에도 투자 수익의 일부를 공유하고자 합니다. 특히 이번 키옥시아 투자로 거둔 성과는 직접 체감하실 수 있도록 투자 수익의 대부분을 일단 특별 배당으로 지급할 계획입니다. 올해 결산이 마무리되기 전이지만 현재까지 예상되는 투자 성과의 일부를 주주 여러분과 먼저 나누는 것이 의미 있다고 판단했습니다. 따라서 3분기에 특별 배당 일부를 선제적으로 지급하고, 나머지 특별 배당은 투자 성과가 최종 확정되는 결산 배당에 포함하여 지급할 예정입니다. We also plan to share any meaningful return on our investment when it arises, mainly the return on our investment in Kioxia. Most of it will be paid out in special dividend so that it can be actually felt by our shareholders. Although we have yet to close the books for this year, we decided that it would be meaningful to share at least part of the expected returns with our shareholders first. So part of the special dividend will be paid out early in the third quarter, and the rest will be included in the year-end dividend after finalizing the return on investment. 전체 주주 환원 규모에서 현금 배당을 제외한 나머지를 일단 자사주 매입으로 배정했습니다. 현재 저희의 주가는 저희가 창출하고 있는 이익과 현금 흐름을 충분히 반영하지 못하고 저평가되어 있다고 보고 있습니다. 이러한 상황에서 자기 주식을 매입하여 소각하는 것이 주당 가치를 높이는 효과적인 방법이라고 판단했습니다. 연간 매입 규모 내에서 매 분기 지속적으로 매입할 예정이고, 분기별 매입 규모는 주가 수준과 valuation 그리고 현금 흐름 등을 일단 종합적으로 고려해서 이사회에서 결정할 예정입니다. After the cash dividend, the rest of the total shareholder return is allocated to share acquisition. We believe our share price today is undervalued, not adequately reflecting our earnings and cash flow. That is why we decided that share acquisition and cancellation would be an effective way of raising the per share value. The acquisition will continue every quarter within the annual size, and the size of the quarterly acquisition will be determined by the board of directors considering such factors as the share price, valuation, cash flow, and so forth. 앞으로도 저희는 건전한 현금 창출력을 바탕으로 주주 환원 정책을 충실히 이행하겠습니다. 그리고 주주 가치를 지속적으로 높여갈 수 있도록 노력하겠습니다. Going forward, we will faithfully implement our shareholder return policy based on our robust cash generation, and we remain committed to continue to enhance our shareholder value. 답변 감사합니다. 다음 질문해 주십시오. Thank you very much. We will take the next question. 다음으로 질문해 주실 분은 골드만삭스의 이준희 님입니다. The following question will be presented by Giuni Lee from Goldman Sachs. Please go ahead with your question. 우선 좋은 실적 축하드립니다. 저는 LTA 관련 한 가지 질문이 있습니다. 현재 확보된 LTA 물량이 '27, '28년 전체 Capa의 50% 이상이라고 말씀하셨는데, 중장기 실적 방향성이나 추가 성장 여력 측면에서 어떻게 바라봐야 할지 말씀 부탁드립니다. 감사합니다. Congratulations on the outstanding performance. My question is on the LTA. It was explained earlier that currently the volume secured through the LTAs is about 50% of the volume of the total capacity for 2027 and 2028. What would it mean for the company's performance and potential for increment growth in the longer term? 질문 감사드립니다. 당사는 LTA 확대를 통해 중장기 수요 가시성을 높이고 이를 안정적인 매출과 이익 성장으로 연결하는 데 주력하고 있습니다. Thank you for the question. By increasing LTA coverage, our goal is to improve longer-term demand visibility, which can lead to stable revenue and earnings growth. 이미 확보한 LTA 물량과 현재 고객사들과 구체적으로 협의 중인 수요를 종합하면 2029년까지 향후 3년 동안 당사의 DRAM과 HBM 물량은 사실상 모두 sold out 된 상황입니다. The volume already secured under LTAs and the demand currently being discussed with customers taken together means that our DRAM and HBM volume for the next three years through 2029 are effectively sold out. 협의 중인 물량 역시 고객의 구체적인 구매 계획에 기반한 것으로 실현 가능성이 높은 수요이며, 이를 감안하면 중장기 판매 가시성이 상당히 높아졌다고 판단합니다. The volumes under discussion are based on customers' concrete purchasing plan and are highly likely to come through. Overall, we believe our medium to long-term sales visibility has significantly improved. 앞서 말씀드린 것처럼 현재 LTA로 확보한 물량은 2027년과 2028년 전체 Capa의 50% 이상이며, 중장기 LTA 비중도 유사한 수준으로 운영할 계획입니다. As mentioned earlier, the volumes committed under LTAs account for more than 50% of total Capa in 2027 and 2028, and we plan to keep it similar over the medium to longer term. 이를 통해 안정적인 수익 기반을 확보하는 동시에 LTA에 해당하지 않는 Capa는 시장 상황과 향후 차세대 제품 수요에 유연하게 대응함으로써 미래 경쟁력 확보에도 적극 활용하고자 합니다. This arrangement will help us secure a reliable earning space. At the same time, we can utilize the non-LTA Capa to flexibly respond to market conditions and demand for next generation products to keep strengthening our future competitiveness. 네, 다음 질문해 주십시오. Thank you. Next question please. 다음으로 질문해 주실 분은 Bank of America의 Simon Woo 님입니다. The following question will be presented by Simon Woo from Bank of America. Please go ahead with your question. Bank of America의 우동재입니다. 제 질문은 아무래도 과거 메모리 사이클 중 어려웠던 시절이 있다 보니, 혹시 과잉 생산 가능성에 대해 경영진께서 어떤 대응 전략이 있으신지 좀 여쭤보고 싶습니다. 질문 배경은 현재 강한 메모리 수요가 있다 보니 우리 하이닉스가 용인뿐만 아니라 여러 거점에서 팹도 건설하시고, 또 기존의 Capa도 확대하시고 업그레이드 하시는 것 같아서 혹시 수요가 예상보다 적게 나왔을 때 이거에 대한 대응 전략이 어떠신지 좀 궁금하고요. 저도 역대급 실적과 특히 주주 환원 정책 디테일에 다시 한번 감사드립니다. My question is with regards to possible overproduction, and that is because there have been some challenging cycles in the past. The question or the concerns over possible overproduction come from the fact that because of the very strong market demand that is continuing, SK hynix continues to build either new fabs or build out or upgrade existing fabs, including the ones in Yongin. What if demand were to fall short of expectations, then what would be the company's strategy or the management's plan against it? I would also like to congratulate the company on the excellent performance as well as the very detailed shareholder return plan. 예, 질문 감사합니다. 답변드리겠습니다. 현재 저희 회사는 강한 고객 수요에 대응하고 있고, 기술 전환이 필요한 장비와 생산 공간을 확보하기 위해 중장기 투자를 추진하고 있습니다. 다만, 투자 규모나 신규 팹 수가 늘어난다고 해서 그와 정비례해서 공급이 증가하는 것은 아닙니다. Thank you for the question. It is true that the company is currently pursuing medium to long term investment to accommodate the strong demand and secure enough space for the equipment and production needed for tech migration. But more investment or more fabs does not necessarily mean more supply. 최근에는 HBM을 비롯한 고성능 제품의 비중이 높아지고 공정도 복잡해지면서 생산에 필요한 자원은 늘어나는 반면에, 미세화를 통해서 늘릴 수 있는 빗 생산량에서는 제약이 커지고 있습니다. 따라서 현재의 투자는 단순히 생산 능력을 늘리기 위한 것은 아니라, 기술 전환과 고부가 제품 확대에 필요한 생산 기반을 확보하기 위한 투자이기도 합니다. With the rising share of high performance products like HBM and increasingly complex processes, more resources are needed for production. But increasing bit output with finer technology is becoming more and more limited. Our investment today is not only to expand production capacity, it is also intended to build the production base that is needed for a tech migration and expansion of high value-add product lineup. 투자 집행은 단계적으로 이루어질 예정입니다. 기반 인프라는 중장기 수요에 대비해서 선제적으로 준비하고, 장비 반입과 양산 확대 등 실제 공급 증가로 연결되는 핵심 자원은 수요에 따라 조정한다는 방침입니다. 예를 들어서 용인 클러스터와 M17을 포함한 신규 팹은 건물 골조에 해당되는 쉘 건설 일정을 앞당기되, 클린룸은 페이즈별로 나누어 오픈할 예정입니다. 바로 이러한 부분이 향후의 탄력적 운영을 염두에 둔 부분이라고 할 수 있습니다. Our investment will be executed in stages. The foundational infrastructure will be readied in advance for medium to long term demand, but the key resources needed to increase supply, such as equipment moving and mass production ramp-up, will be adjusted in line with demand. For example, for new fabs, including the Yongin cluster and M17, we plan to accelerate construction of the shell structure, but clean rooms will be opened in phases. This approach is specifically intended to allow flexible operation in the future. 수요를 판단할 때도 고객이 제시하는 CapEx나 수요 전망만 보는 것은 아닙니다. 고객의 재무건전성과 자금 조달 여력, 주요 공급망이 얼마나 준비되어 있는지까지도 함께 점검하면서 투자 계획에 반영하고 있습니다. When assessing demand, we don't just look at the customer's CapEx or demand forecast. We also review their financial health and funding capability, as well as the readiness of key supply chains before reflecting this in our investment plan. 계속 강조드리고 있는 부분입니다만, 저희의 재무건전성 역시 중요한 판단 기준입니다. 중장기 순현금 목표와 적정 현금 수준을 고려해 충분한 재무 여력을 유지하면서 수요 가시성과 투자 수익성을 기준으로 투자 규모와 집행 속도를 관리해 나가겠습니다. Our own financial soundness is also an important parameter. While maintaining sufficient financial room in light of our medium to long term net cash target and appropriate cash holding, we will manage the scale and pace of investment based on demand visibility and investment returns. 전체적으로 정리를 하면 높아진 수요 가시성을 바탕으로 중장기 공급 기반은 차질 없이 준비를 하되, 실제 생산 능력은 수요와 수익성에 맞춰 확대하겠다는 것입니다. 만일 예상과 다른 상황이 언제라도 발생하더라도 투자 집행과 생산 계획, 그리고 리소스 배분을 유연하게 조정하면서 리스크를 잘 관리하도록 하겠습니다. To sum up, we will prepare our medium to long term supply infrastructure as planned, based on improved demand visibility. Actual production capacity will be ramped up only in line with demand and profitability. If conditions do differ from our expectations, we will make sure to respond to any risks by flexibly adjusting our investment disbursement, production plan, and resource allocation. 네, 다음 질문해 주십시오. Thank you. We will take the next question. 다음으로 질문해 주실 분은 JP Morgan의 제이 권님입니다. The following question will be presented by Jay Kwon from JPMorgan. Please go ahead with your question. 네, 호실적 축하드리며 질문 기회 감사합니다. 서두에서 HBM 사업 전망을 공유해 주셨는데, 더 구체적인 현재 HBM4 공급 진행 상황이 어떤지 궁금합니다. 또 아울러서 이후에 HBM4 및 custom HBM 준비 현황에 대해서도 계획 공유 좀 부탁드리겠습니다. 감사합니다. Congratulations on the good performance and thank you very much for taking my question. The HBM4 supply was mentioned earlier, but I would like to get an update from the company on the specifics of the HBM4 supply. Can you also share your plan for the follow-up, the HBM4E and custom HBM? 질문 주셔서 감사드리고 답변드리도록 하겠습니다. 앞서 말씀드린 대로 4분기에는 HBM4가 추가 물량과 매출 비중 모두 HBM3E를 crossover 할 것으로 예상하고 있습니다. 이는 양산이 차질 없이 진행되고 있기 때문입니다. Thank you very much for the question. As mentioned earlier, HBM4 is expected to crossover HBM3E in the fourth quarter in both bit shipment and revenue share, thanks to mass production proceeding without disruption. 수율도 상당히 안정적입니다. 당사는 fab과 back-end 수율 모두 업계 최상위 수준을 유지하고 있습니다. 특히 back-end 수율은 bump, stack, 그다음에 KGSD test 같은 개별 공정이 아니라 전체 공정을 기준으로 말씀드리는 것입니다. 이 기준으로 HBM4는 계획 수율을 상회하여 목표를 상향 조정했고, HBM3E도 당초 계획했던 성숙 수율을 초과 달성했습니다. The yield is also quite stable. The company is maintaining industry best level yield at both our fabs and back-end processes. In particular, our back-end yield refers to the entire process, not just individual steps like bump, stack, or KGSD test. On this basis, HBM4 already exceeded its planned yield, so the target was revised up. HBM3E has also surpassed the planned mature yield. 지금은 높은 고객 수요에 대응하기 위해 생산성을 극대화하는 데 집중하고 있으며, HBM 사업의 성과를 통해 당사의 차별화된 경쟁력을 다시금 확인하실 수 있을 것입니다. For now, we are focused on maximizing productivity to meet strong customer demand. Our performance in the HBM business will once again demonstrate our unparalleled competitiveness. 다음 세대 제품도 착실히 준비하고 있습니다. HBM4E는 지난 2분기에 샘플 공급을 완료했고, 고객 일정에 맞춰 개발과 평가가 순조롭게 진행되고 있습니다. Of course, we are also steadily preparing for next generation products. For example, for the HBM4E, we already completed sample shipment in the second quarter. Development and qualification are moving ahead in line with customers' timeline. 향후에는 standard HBM의 안정적인 공급과 함께 고객별 시스템과 워크로드에 최적화된 custom HBM도 더욱 중요해질 것으로 보여서 주요 고객과 관련 프로젝트를 긴밀하게 추진하고 있습니다. And looking further ahead, in addition to stable supply of standard HBM, we are seeing growing importance of custom HBM, which is optimized for each customer's system and workloads. So we are working closely with major customers on related projects. 앞으로도 당사는 주요 고객 내 first supplier로서 검증된 제품 경쟁력과 안정적인 양산 능력을 바탕으로 HBM 사업의 성장을 이어가도록 하겠습니다. As the first supplier to our key customers, we will keep growing our HBM business, drawing on proven product competitiveness and reliable mass production capability. 네, 답변 감사합니다. 다음 질문해 주십시오. Thank you. Next question. 다음으로 질문해 주실 분은 SK증권의 한동희 님입니다. The following question will be presented by Dong Hee Han from SK Securities. Please go ahead with your question. 네, 안녕하세요. SK증권 한동희입니다. 질문 기회 감사드립니다. 저도 HBM 관련된 질문드리고 싶습니다. 최근 HBM 적층 단수의 하향 조정 가능성에 대해서 회사는 어떤 견해를 가지고 계신지, 그리고 이러한 변화들이 HBM 출하량, 그리고 수익성 관점에서 HBM 비즈니스에 어떤 영향을 미치게 될지 의견 부탁드립니다. 감사합니다. Thank you for taking my question, which is also on the HBM, particularly on the possibility of lowering the HBM stacks. What is the company's view on this possibility of having shorter HBM stack? What would be the potential impact on the HBM business, including HBM shipment and profitability? 질문 감사드리고요. 답변드리도록 하겠습니다. 최근 일부 고객의 HBM 사양 조정 움직임은 수요가 공급을 압도하고 있음을 보여주는 대표적인 사례라고 생각하고 있습니다. HBM 공급이 부족한 상황에서 고객은 제한된 물량으로 더 많은 AI 가속기와 시스템을 구축해야 합니다. 이에 적층 단수를 낮춰 동일 용량 기준으로 확보 가능한 큐브 수를 늘리려는 전략이라고 보고 있습니다. Thank you for the question. The recent moves by some customers to adjust HBM specifications illustrate that demand is indeed overwhelming supply. With HBM supply remaining constrained, customers need to build more AI accelerators and systems using limited quantity. We see the stack lowering as a strategy to increase the number of cubes that can be obtained for the same capacity. 다만, 적층 단수를 낮춘다고 해서 HBM 용량이 그만큼 줄어드는 것은 아닙니다. HBM4 12단에서 HBM4E 8단으로 조정되더라도 다이당 용량이 늘어나면서 단수 감소에 따른 영향을 상당 부분 보완할 수 있습니다. Having said that, lower stack does not necessarily mean a proportionate decrease in HBM capacity. Even if it goes from 12-stack HBM4 to eight-stack HBM4E, the increase in capacity per die can offset a substantial part of the impact. 이러한 사양 조정 가능성을 감안하더라도 당사의 중장기 HBM 수요 전망에는 변화가 없습니다. 현재 고객의 요청 물량은 당사가 공급 가능한 물량의 2배를 상회할 정도로 강한 수요가 지속되고 있으며, 이는 당사 제품 경쟁력에 대한 고객의 높은 선호가 이어지고 있다는 근거이기도 합니다. Even when considering such adjustment, our medium to long-term HBM demand outlook remains unchanged. Demand remains so strong that customers' volume requirement is more than double that of what we can supply today, which is also indicative of customers' continued strong preference for our products. 공급 측면에서도 영향은 없는데요. 동일 비트 물량을 낮은 단수로 공급하면 필요한 큐브 수가 증가하고, 이에 따른 베이스 다이와 후공정 소요도 늘어나게 됩니다. 당사는 이를 이미 생산 공급 계획에 반영했으며, 현재 계획 중인 HBM 출하 물량과 공급 일정은 차질 없이 추진될 예정입니다. Neither the supply side will be affected. Supplying the same bit volume with lower stacks requires more cubes, which in turn increases the need for base dies and back-end processing. We already incorporated this into our production and supply plan, and we will implement our HBM shipment and supply as planned. 수익성은 제품별 거래 조건과 그다음에 제품 구성, 수익, 후공정 생산성 및 원가가 함께 영향을 미치기 때문에 적층 단수만으로는 판단할 수 없습니다. 내년에는 HBM4 비중 확대와 가격 상승에 더해 양산 수익과 원가 경쟁력도 추가로 개선될 것으로 예상되는 만큼, HBM 매출과 이익은 올해 대비 큰 폭으로 성장하고 수익성도 유의미하게 개선될 것으로 전망하고 있습니다. As for profitability, it is not determined solely by the stack count. There are a combination of factors like terms of trade for each product mix, yield, back-end productivity, and cost. Next year, share of HBM4 and its price will increase while mass production yield and cost competitiveness will further improve, making it likely that HBM revenue and profit grow significantly year-over-year, with meaningful improvement in profitability as well. 앞으로도 과거 사이클의 피크를 훨씬 상회하는 높은 수익성이 지속 가능할 것으로 기대하고 있습니다. Looking ahead, profitability is expected to remain high, far above the peak in past cycles. 네, 다음 질문해 주십시오. Thank you. Next question. 다음으로 질문해 주실 분은 미래에셋증권의 김영건 님입니다. The following question will be presented by Youngkun Kim from Mirae Asset Securities. Please go ahead with your question. 안녕하십니까? 미래에셋증권 김영건입니다. 최대 실적 축하드리고 질문 기회 주셔서 감사드립니다. 최근 후발 업체들이 새로운 셀 구조와 차세대 DRAM 기술 개발을 추진하면서 장기적인 기술 경쟁 구조에 대한 관심이 커지고 있습니다. SK hynix의 4F² DRAM 준비 상황에 대해서 공유 부탁드리고, 기술 경쟁력을 강화하기 위해 중점을 두는 개발 방향은 어떻게 되시는지 말씀 부탁드립니다. 감사합니다. Congratulations on the record performance. My question is on the 4F². We see that other companies are also working on new cell structures and next-generation DRAM technology, which is heightening interest in long-term technology competition. Is there an update on the preparation for the 4F², and what is the company's areas of development focus to strengthen our technological competitiveness? 4F²은 기존 6F² 대비 셀 면적을 줄여서 집적도를 높이는 차세대 DRAM 기술입니다. 다만, 업체별로 미세화 여력과 공정 환경, 원가 구조가 다른 만큼 적용 시점과 전략도 달라질 수 있습니다. Thank you for the question. The 4F² is a next-generation DRAM technology that increases density with a smaller cell area than 6F², and the applicability and strategy would depend on each company's scaling capability, process environment, and cost structure. 당사는 공정 성숙도와 안정적인 테크 플랫폼 운영을 통해 기존 6F² 구조를 최대한 활용하고, 이후 4F² 또는 3D DRAM 플랫폼으로 전환하는 기술 개발을 진행하고 있습니다. For the company, our development plan is to utilize the 6F² structure to the extent possible through process maturity and stable tech platform, then transition to 4F² or 3D DRAM platform. EUV 기반의 미세화 공정 혁신을 통해 현재의 6F² 플랫폼을 추가로 확장할 수 있는 기술적 여력을 확보하고 있습니다. 따라서 현시점에서는 양산 안정성과 원가 경쟁력이 검증된 플랫폼을 최대한 활용하여 제품 경쟁력을 높이는 것이 가장 효율적인 전략이라고 판단하고 있습니다. Through the EUV-based scaling and process innovation, we have secured the technological ability to further extend our current 6F² platform. At this point, we believe that the most efficient strategy for the company is to strengthen our product competitiveness by making the most of a platform whose mass production reliability and cost competitiveness have already been proven. 새로운 셀 구조를 실제 제품에 적용하기 위해서는 성능뿐 아니라 수율과 신뢰성, 원가 경쟁력을 두루 확보하고 제품 설계와 고객 평가까지 거쳐야 합니다. 그렇기 때문에 기술 구현과 실제 상용화 시점은 구분해서 볼 필요가 있습니다. To apply a new cell structure into the products, we must secure not only performance, but also yield, reliability, and cost competitiveness. Not only that, the product design and customer qualification must also be completed. This is why the timing of technological development and the timing of commercialization are distinct from each other. 저희는 기존 DRAM의 extreme scaling부터 4F²와 3D DRAM까지 단계별 기술 로드맵을 준비하고 있고, 각 기술의 완성도와 경제성을 확보하는 시점에 맞춰 적합한 제품에 적용해 나갈 계획입니다. 앞으로도 당사는 축적해 온 공정, 설계 기술과 양산 경험, 고객 협력 역량을 바탕으로 차세대 DRAM에서도 성능과 원가, 양산성을 모두 갖춘 기술 경쟁력을 이어가겠습니다. We are preparing a step-by-step roadmap covering from the extreme scaling of the existing DRAM to 4F² and 3D DRAM. Each technology will be applied to the right product at the right time. The right time, meaning when it is ready technologically and economically. We will keep drawing on our process and design capability, production experience, and customer cooperation, and sustain our technological competitiveness in next generation DRAM by combining performance, cost efficiency, and producibility. 네, 감사합니다. 이제 마지막 질문 받도록 하겠습니다. Thank you. We will take the last question. 마지막으로 질문해 주실 분은 NH투자증권의 류영호 님입니다. The last question will be presented by Youngho Ryu from NH Investment & Securities. Please go ahead with your question. 네, 질문 기회 주셔서 감사합니다. 저는 NH투자증권의 류영호입니다. 저는 NAND 관련해서 질문드리고 싶은데요. 최근에 KV cache 규모가 굉장히 빠르게 커지고 있습니다. 그래서 이거를 여러 가지 메모리 계층에 나눠서 저장하거나 재사용을 하는 움직임들도 구체화되고 있는 것 같은데, 이런 부분들이 향후 NAND 수요에 어떠한 영향을 미칠 것으로 전망하시는지 궁금하고요. 그리고 관련돼서는 어떤 준비를 하시는지 공유를 부탁드리겠습니다. Thank you for taking my question, which is on NAND. Now, we see these days that the size of KV cache is growing rapidly, and now there is also work underway to store and reuse it across multiple memory tiers. How does the company expect this to affect future NAND demand, and what type of preparation is being made? NAND 질문 감사드립니다. agentic AI와 long context 확산으로 KV cache의 규모가 빠르게 증가하면서 이를 모두 HBM과 DRAM에 저장하기에는 용량과 비용의 한계가 있습니다. 이에 데이터의 접근 빈도에 따라 HBM, DRAM, SSD에 나누어 저장하는 계층형 메모리 구조가 더욱 중요해지고 있습니다. Thank you for the question on NAND. As agentic AI and long context use cases spread, the size of KV cache is growing rapidly, making it difficult to store it all in HBM or DRAM due to capacity and cost constraints. As a result, a tiered memory architecture is becoming increasingly important, which distributes data across HBM, DRAM and SSD according to access frequency. 이는 NAND의 AI 추론에 필요한 context를 보관하고 재사용하는 새로운 수요 기회를 가져올 것으로 기대하고 있습니다. SSD는 이미 일부 AI 시스템에서 KV cache offload에 활용되고 있으며, 향후에는 여러 서버와 GPU가 대규모 KV cache를 공유하는 context 메모리 계층으로 역할이 확대될 것으로 보고 있습니다. This is expected to create new demand for NAND to store and reuse the context needed for AI inference. SSD is already being used in some AI systems to offload KV cache, and we believe its role will expand into the context memory tier that allows multiple servers and GPUs to share large scale KV cache. In response to this opportunity, the company is developing memory tiering technologies, including the semantic aware lifecycle tiering for KV and CMM-Hybrid. The SALT-KV is a software technology that optimizes data allocation across HBM, DRAM, and SSD by assessing the reuse value and storage cost of each KV cache. CMM-Hybrid is a CXL based hybrid memory technology that stores the entire KV cache on SSD. It then predicts which data is likely to be needed and preloads it into DRAM. And more recently, through system demonstrations based on actual AI workloads, we are defining the applicability and performance requirements for eSSDs in real inference environment to make it ready for adoption in our customers and platform partners architecture. And for the medium to longer term, we plan to address the new memory tier between HBM and SSD using HBF, which combines high bandwidth with NAND's high capacity and cost efficiency. By preempting the new NAND demand opportunities arising from changes in AI system architecture, we will sustain growth in our NAND business. Thank you for the answers. And due to the time constraint, this brings us to the end of the Q&A session. We will conclude the SK hynix third quarter 2026 earnings release conference call with the CEO's closing comments. Now, we have delivered record results for six consecutive quarters. But what we find more significant is that the underlying business environment is changing. The customer trust that we have built through our technological leadership is translating into long-term agreements, giving us greater medium to long-term demand visibility and a stronger foundation for sustained profitability. This means that the potential for a new phase of growth that is distinct from the past is manifesting through concrete changes in our business structure. Our task now is to turn these changes into lasting competitive advantage. We will extend our current leadership in memory, including in HBM, to next generation products and become the first partner that customers turn to as they prepare for the future. We will translate market opportunities into results and further strengthen our ability to sustain that performance. And as our business grows and our investments deliver returns, the rewards we share with our shareholders should also increase. The shareholder return plan announced today reflects this principle. We will continue to build confidence in our future growth through sustained performance and by sharing the rewards with our shareholders. Thank you very much for your continued interest and support. That concludes the closing remarks and the earnings release conference call. Thank you very much.