Lead
SK Group Chairman Chey Tae-won has purchased shares of SK hynix Inc. for the first time, a move that comes amid significant volatility in the chipmaker's stock price. According to a regulatory filing, Chey bought 3,620 shares in the open market, with the total value amounting to around 4.8 billion won (US$3.35 million), based on the chipmaker's closing price of 1.32 million won on Thursday.
Industry insiders suggest the stock purchase was made to demonstrate Chey's commitment to "responsible management," amid assessments that SK hynix shares are being severely undervalued, as reported by Yonhap News.
Coverage Comparison
Yonhap News, South Korea's leading wire service, provided two separate reports on the matter. The first, dated July 30, detailed the share purchase itself and the context of the stock's recent decline. The second, dated July 17, focused on Chey's earlier remarks about the long-term prospects of SK hynix shares, made during a forum hosted by the Korea Chamber of Commerce and Industry (KCCI), which he chairs.
Both reports emphasize Chey's positive outlook on the company's future, though they approach the topic from different angles. The July 30 article highlights the purchase as a signal of confidence in the company's value, while the July 17 article captures Chey's public statements on the wisdom of holding shares long-term.
Key Claims
- First-time purchase: Chey purchased 3,620 shares of SK hynix in the open market, marking the first such move by the executive, according to a regulatory filing reported by Yonhap News.
- Value of purchase: The total value of the shares acquired is around 4.8 billion won, based on the closing price of 1.32 million won on the day of the purchase.
- Stock performance: Shares of SK hynix have nearly tripled since the beginning of the year, although they have recently shown heightened volatility. The share price had reached a record high of 2.99 million won on June 25 but has since fallen by more than half to 1.32 million won.
- Chey's outlook: Chey has stated that shares of SK hynix are likely to trend upward over the long term, citing sustained demand for memory chips. He earlier said it is "better to hold on to SK hynix shares, instead of repeatedly selling and repurchasing them, to preserve wealth."
- Market leadership: SK hynix has established its leadership in the high bandwidth memory (HBM) market by moving early into the technology and becoming a key supplier to Nvidia Corp., as demand for artificial intelligence (AI) accelerators surged. This strategy has led to record earnings and enabled the company to overtake Samsung Electronics Co. to become South Korea's most valuable listed company by market capitalization for the first time in 25 years.