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SK Chairman Chey Tae-won Advises Holding SK Hynix Stock for Long-Term Gains, Cites AI Demand

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • SK Group Chairman Chey Tae-won advised investors to hold onto SK Hynix stock, predicting a long-term upward trend due to increasing demand for memory chips in AI.
  • He suggested South Korea should focus on developing niche markets in AI by creating infrastructure and selling computing power, rather than just memory chips.
  • Chey also commented on the future of education, stating that traditional university-focused models are outdated and that education should focus on practical life skills.

Chey Tae-won, chairman of the SK Group and the Korea Chamber of Commerce and Industry, has offered a bullish outlook on SK Hynix's stock, advising investors to resist short-term trading. He believes the company's stock price will "trend upwards over time" due to the sustained and growing demand for memory semiconductors, which are essential for artificial intelligence.

Memory is continuously needed, so it trends upwards over time.

— Chey Tae-wonExplaining his long-term positive outlook for SK Hynix stock.

"I don't know what the stock price will be next month, but not buying and selling, and just holding onto it, is a good way to preserve your assets," Chey stated during a forum in Jeju. He elaborated on the burgeoning AI sector, comparing its current stage to that of a "four-year-old child," and emphasized that as AI matures, the need for memory will "inevitably increase exponentially." He noted that the dramatic price surges seen in semiconductor stocks are a reflection of this anticipated demand, acknowledging that prices can fluctuate rapidly based on market sentiment and adjustments.

AI is still a four-year-old child, but as it matures, memory will inevitably be used. That demand is bound to increase exponentially.

— Chey Tae-wonJustifying the growing demand for memory chips due to AI development.

Looking beyond memory chips, Chey proposed a strategic approach for South Korea's AI industry. He suggested focusing on niche markets by building infrastructure and developing applications on top of it, rather than competing directly with global leaders like the US and China in areas like token costs or quality. "We need to sell not just memory, but computing power," he urged, advocating for a shift in strategy towards exporting "intelligence" rather than just hardware.

We need to sell computing power, not just memory. We need to change our strategy to exporting intelligence in the future, not just products.

— Chey Tae-wonProposing a new strategic direction for South Korea's AI industry.

In a separate discussion on education, Chey criticized traditional, rote-learning methods. He argued that the era where a university degree was the sole determinant of talent is over. Instead, he called for a future educational model that prioritizes learning that is beneficial to human life and practical skills, moving away from a purely academic focus.

The era where you had to graduate from university to be considered talented is over.

— Chey Tae-wonCommenting on the changing landscape of education and talent development.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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