SK Group Chairman Chey Tae-won. [Yonhap]
SK Group Chairman Chey Tae-won. [Yonhap]

SK Group Chairman Chey Tae-won bought approximately 4.8 billion won ($3.31 million) worth of SK Hynix shares on the open market, signaling a strong commitment to responsible management. The move is seen as a direct effort to shore up the share price and calm investor nerves as volatility has risen in the domestic stock market, particularly in the semiconductor sector. It marks the first time Chey has acquired SK Hynix shares under his personal name.

SK Hynix disclosed Thursday that Chey purchased 3,620 common shares through open-market buying. Based on the closing price that day, the transaction was valued at 4.79 billion won. This is the first time Chey has personally held a stake in SK Hynix. Until now, he had exercised control over the chipmaker through SK Square, SK Hynix's largest shareholder, rather than holding shares directly.

Keeping the purchase amount near 4.8 billion won is widely interpreted as a move to act quickly. Under the current pre-disclosure regime for insider trading at listed companies, any transaction exceeding 5 billion won requires the trading plan to be disclosed at least 30 days in advance. In effect, Chey bought the maximum amount he could without triggering that requirement, ensuring he could act immediately without missing the right moment. SK Group said the purchase was "an act of practicing responsible management."

The business community views the acquisition as a strong expression of confidence in SK Hynix's intrinsic value. Analysts say Chey concluded that the current share price was severely undervalued relative to the company's fundamentals, particularly after investor anxiety spiked following a sharp drop in SK Hynix's American depositary receipt price shortly after its US listing on July 10. Chey had recently commented on the share price, saying, "Memory chips will always be needed, so given time, the price will trend upward," and advising investors to "hold on to your shares rather than buying and selling — that is the better way to preserve your wealth."


keg@heraldcorp.com