Is the "Money Tree" Being Shaken? Pressure Mounts on SK Hynix and Chairman Chey Tae-won

Economic experts have suggested that the South Korean government views SK Hynix as a solution to its socio-economic challenges.

Columnist Shuli Ren published a column in Bloomberg on July 12 (local time) titled, "The Golden Goose, SK Hynix, Must Lay More Golden Eggs."

She analyzed, "Starting with a progressive South Korean government that views SK Hynix as a solution to the nation's socio-economic problems, everyone now wants to shake this 'money tree.'"

Regarding the government's announcement of mega-projects and SK Hynix's plan to build a semiconductor cluster in the Honam region, she pointed out, "The government has conveniently equated 'production capacity' with national wealth."

She added, "It is the easiest way to jump-start an economy that barely grew 1% last year."

Ren also noted, "Of course, Washington wants a slice of this pie, too," adding, "Commerce Secretary Lutnick has been pressuring for increased production in the U.S., and Chairman Chey Tae-won has promised an investment far larger than the existing $35 billion, seemingly in response to political pressure."

Ren pointed out, "The new challenge for SK Hynix, which has achieved a blockbuster U.S. listing, is whether it can satisfy the conflicting demands of its difficult stakeholders."

She stated, "Individual investors have absorbed the sell-offs from foreign institutions and suffered losses during the recent volatility in stock prices," adding, "Chairman Chey Tae-won has millions of retail investors to answer to."

She advised U.S. investors to "be cautious, as they have joined late."

Ren wrote, "While the blockbuster U.S. listing signals South Korea's emergence on the global economic stage, it also carries potential social risks," adding, "The government relies on SK Hynix for national revival, while households hope for rising stock prices and a secure retirement fund."

She warned, "Large-scale supply will flood the market within the next five years, overturning fragile supply-demand practices and deepening potential revenue declines," noting that "semiconductors are a highly cyclical industry."

Reported by Kim Jiuk | Video by Choi Kang-san | Graphics by Lee Jung-ju | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.