SK hynix has initiated procedures for a stock market listing in the United States within this year. The company intends to raise the astronomical investment capital required for the construction of the Yongin semiconductor cluster to maintain leadership in artificial intelligence (AI) memory semiconductors and the building of a plant in Indiana, United States, directly from global capital markets. SK hynix President Kwak Noh-jung stated, “To fund future investments, the company must secure more than KRW 100 trillion in net cash.”

● “Listing application submitted to the U.S. SEC”

On the 25th, SK hynix announced, “For a listing on the U.S. securities market, on the 24th we confidentially submitted a registration statement to the U.S. Securities and Exchange Commission (SEC) regarding the public offering and listing of our American Depositary Receipts (ADRs).” SK hynix added, “Specific details such as the size, method, and timetable of the offering have not yet been finalized,” and explained, “The final decision on whether to proceed with the listing will be made after comprehensively considering the SEC’s review of the registration statement, market conditions, demand forecasts, and other relevant factors.”

An ADR is a substitute security issued so that shares of a company listed on a non-U.S. exchange can be bought and sold on U.S. stock markets. Investors can trade shares in foreign companies in U.S. dollars without going through complicated procedures. Through an ADR listing, SK hynix aims to expand access for global investors, secure large-scale investment capital, and have its corporate value properly reassessed.

The main topic at SK hynix’s 78th Annual General Meeting of Shareholders, held the same day at its headquarters in Icheon, Gyeonggi Province, was also the ADR. Presiding as chair of the meeting, President Kwak said, “We are preparing (for the ADR listing) with a target in the second half of this year (July to December).” He stated, “We are aiming to secure more than KRW 100 trillion in net cash for stable investment,” and added, “We will seek a revaluation of our corporate value in the global capital market and expand our investment base.” As of the end of last year, SK hynix held approximately KRW 12.7 trillion in net cash, and the company intends to raise this to a level comparable to Samsung Electronics (around KRW 100.6 trillion).

● Share price up fivefold… “Shareholder return policies must be expanded”

At SK hynix’s shareholders’ meeting that day, many shareholders voiced the opinion that “shareholder return policies are insufficient.” Management offered explanations as to why the company needs to secure cash. In particular, shareholders expressed dissatisfaction despite the news of the ADR listing. Although SK hynix has not disclosed specific methods, some have speculated that “the company will issue new shares for the ADR listing.”

One shareholder stated at the meeting, “The company could list ADRs by using treasury shares, so I do not understand why it is insisting on issuing new shares.” Another shareholder said, “It is difficult to understand the emphasis on cash accumulation.”

In response to the strong criticism from shareholders, President Kwak stressed the need to increase investment at this time. He said, “The driver behind the fivefold rise in our share price from the KRW 200,000 range last year to surpassing KRW 1 million this year has been timely investment and technology development,” and added, “Shareholder returns and cash accumulation are a matter of sequence, and ultimately we will expand shareholder returns.” When asked about any plans for a stock split of SK hynix shares, President Kwak replied, “Our share price at around KRW 1 million is quite high within the KOSPI,” but added, “At present, there are no specific plans.”

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