SK Chairman Chey Tae-won: Hold SK Hynix Stock, Don't Trade It

SK Group Chairman Chey Tae-won urged investors to maintain a long-term perspective on SK Hynix stock, advising them to hold rather than trade frequently. He projected a steady upward trajectory for the company's shares, emphasizing the growing demand for memory chips fueled by advancements in artificial intelligence.

“

If you look at it over time, it will go up, so don't buy and sell, just keep it.

"AI needs to store memory somewhere to become competent, and that is the memory chip," Chey explained during a forum in Jeju. He likened AI's memory needs to a child's growing capacity for remembrance, stating that as AI evolves, so does its storage requirement. This increasing demand, he noted, has already contributed to the recent rise in stock prices for SK Hynix and Samsung Electronics.

However, Chey acknowledged the short-term fluctuations in the stock market, cautioning that rapid price increases can lead to corrections as the market adjusts to new realities. "I don't know what will happen next month," he admitted, referencing SK Hynix's stock price, which has recently adjusted to the 1.8 million won range after hitting a record high of 2.68 million won per share in late June.

“

AI needs to store memory somewhere to become competent, and that is the memory chip.

Looking at South Korea's strategy in the global AI race, Chey proposed focusing on niche markets. He characterized the US-China competition as the US investing heavily in advanced AI and China focusing on low-cost AI tokens. He believes South Korea faces challenges in both developing top-tier AI and undercutting costs, suggesting a more strategic approach by targeting underserved segments within the AI infrastructure.

“

If the stock price rises too quickly, it also falls to adapt to reality.

Chey also shared his personal vision for AI adoption, planning to create about ten AI agents that would act as his replicas. He believes these agents could handle communications, allowing employees to receive his judgment without direct interaction. Addressing concerns about the impact of AI on human intellect, Chey criticized the trend of outsourcing thinking and called for an overhaul of educational systems that prioritize rote memorization over critical thinking. He highlighted SK Hynix's recent move to remove academic requirements for new hires as an example of embracing a broader talent pool, including high school graduates and younger individuals.

“

Korea should target niche markets that the US and China are not interested in, on our infrastructure.