Heungkuk Asset Management Retracts Critical Letter to SK Hynix

Heungkuk Asset Management has retracted a critical shareholder letter sent to SK Hynix, just a day after its dispatch. The letter had raised concerns regarding the semiconductor giant's large-scale investment plans in the Honam region and what it perceived as inadequate shareholder returns during a period of record profits.

The shareholder letter, titled 'A Letter to the SK Hynix Board of Directors: Where is the Seat for General Shareholders?', questioned the practice of a major shareholder, Chairman Chey Tae-won, announcing significant investment plans alongside government officials before formal board approval. Heungkuk Asset Management argued this approach deviates from global standards of board-centric management. SK Hynix had previously disclosed mid-to-long-term investment plans totaling 1100 trillion won, including a 400 trillion won semiconductor cluster in the southwestern region, but left the board resolution date blank, stating further details would be confirmed pending board approval.

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The appearance of a major shareholder (Chairman Chey Tae-won) announcing large-scale investment plans together with the head of the executive branch, who is not a board member, is far from the global standard of board-centric management.

However, Heungkuk Asset Management quickly reversed its position on July 9, clarifying that the letter was the personal opinion of the head of its equity division, not the company's official stance. The firm stated that the letter differed from the company's position and contained certain inappropriate elements, leading to its withdrawal.

This rapid retraction followed SK Hynix's announcement on June 29 of its extensive investment plans. The company had stated that specific schedules and investment details would be finalized and publicly disclosed following board approval.

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The letter sent under the name of the equity division was a personal opinion, not the company's position. It was decided that it differs from the company's position and contains some inappropriate content.