SK Chairman Chey Tae-won buys nearly $4 million in SK Hynix stock

Chey Tae-won, chairman of the SK Group and SK Hynix, has purchased approximately 4.93 billion won ($3.5 million) worth of SK Hynix shares. This direct acquisition of 3,620 common shares on July 30 marks the first time Chey has directly bought stock in the semiconductor company. Previously, he held influence over SK Hynix through the group's intricate shareholding structure: SK Inc. → SK Square → SK Hynix.

The SK Group explained the purchase as an act of "responsible management." The move comes as stock prices for domestic semiconductor companies, including SK Hynix, have plummeted amid concerns of a "peak out" in the semiconductor market. Chey's direct investment is intended to underscore his commitment to navigating these challenges.

However, some observers have questioned whether the purchase is merely symbolic. Chey Tae-won's existing stake in SK Inc., the group's holding company, is valued at over 6.79 trillion won ($5 billion) based on the previous day's closing price. This substantial personal wealth dwarfs the amount spent on SK Hynix shares. For comparison, Hyundai Motor Group Chairman Chung Eui-sun reportedly spent over 80 billion won ($60 million) on Hyundai and Hyundai Mobis shares during a market downturn in March 2020.

SK Group attributed the specific purchase amount to regulatory constraints. Since July 2024, South Korea's "pre-disclosure system for insider trading" mandates that executives and major shareholders of listed companies must publicly announce their trading intentions, including the purpose, amount, and period of the transaction, at least 30 days in advance for large-scale trades. A "large-scale" transaction is defined as acquiring over 1% of total issued shares or trading shares valued at over 5 billion won within a six-month period. Consequently, Chey's purchase was capped at just under 5 billion won to comply with the pre-disclosure requirement without prior announcement.