SK Group Chairman Chey Tae-won Makes First-Ever Personal Purchase of SK hynix Shares
Key Takeaways
- •Chey Tae-won purchased 3,620 SK hynix shares for approximately 4.79 billion won, representing his first direct personal investment in the semiconductor manufacturer.
- •The transaction value was kept just below the 5 billion won threshold that would have required a 30-day advance regulatory filing in South Korea.
- •SK hynix shares have fallen more than 50% from a record high of 2.99 million won on June 25 to a closing price of 1.32 million won, reflecting broad weakness across global semiconductor stocks.
- •Prior to this acquisition, Chey had never held SK hynix shares directly and exercised control indirectly through SK Square, the company's largest shareholder with an approximately 20% stake.
- •The purchase is viewed primarily as a symbolic signal of insider confidence rather than a financially significant transaction given the nominal size relative to the company's total outstanding shares.
SK Group Chairman Chey Tae-won has purchased 3,620 shares of SK hynix on the open market, according to a regulatory filing, marking his first personal investment in the semiconductor manufacturer.
The acquisition, made on Thursday, was valued at approximately 4.79 billion won based on SK hynix's closing price of 1.32 million won ($921) per share that day. The 3,620 shares represent only a fraction of a percent of the company's total outstanding stock.
Until now, Chey had never held SK hynix shares directly. His control over the chipmaker has been exercised indirectly through SK Square, SK hynix's largest shareholder, which owns roughly 146.1 million shares corresponding to a 20 percent stake. When including Chey and other affiliated parties, combined holdings total approximately 146.13 million shares.
The purchase size appears deliberately calibrated to enable swift execution. Under South Korean disclosure regulations, planned stock purchases exceeding 5 billion won require a 30-day advance filing. By keeping the transaction below that threshold, Chey was able to complete the purchase without the waiting period.
The acquisition comes amid a steep pullback in SK hynix shares. The stock reached a record high of 2.99 million won on June 25 before falling sharply to close at 1.32 million won on Thursday — a decline of more than 50 percent in just over a month. SK hynix, which ranks among the world's top three DRAM producers alongside Samsung Electronics and Micron Technology, has not been alone in the selloff; global semiconductor equities have experienced broad pressure in recent weeks amid investor concerns over cyclic demand and inventory adjustments.
Chey has previously articulated a long-term bullish stance on the company. Speaking at the Korea Chamber of Commerce and Industry's Jeju Summer Forum on July 17, he said demand for memory chips would persist and that the company's share price would appreciate over time.
"Memory chips will continue to be needed, so the stock price will rise over time," Chey said. "Rather than buying and selling repeatedly, it is better to hold on to the shares."
The chairman's decision to buy shares personally is understood to reflect his broader commitment to responsible management and his assessment that SK hynix stock had been undervalued at recent levels. Personal share purchases by leaders of South Korea's family-controlled conglomerates, or chaebol, are typically read by local market participants as signals of insider confidence, though the nominal size of Chey's acquisition means its practical significance lies primarily in its symbolic value.
Source: Korea Herald Business