Chey Tae-won snaps up 4.8 billion won of SK hynix shares in his first direct purchase

SK Group Chairman Chey Tae-won on Thursday bought about 4.8 billion won ($3.4 million) worth of SK hynix shares in his first direct stock purchase in the chipmaker.

The move seemingly reflected his confidence in the chipmaker amid a steep sell-off in semiconductor stocks.

A corporate regulatory filing on Thursday showed that Chey acquired 3,620 common shares through open-market transactions. At Thursday's closing price, the purchase was valued at about 4.8 billion won.

It marked the first time Chey has directly bought SK hynix shares.

The purchase is understood to reflect the chairman's effort to demonstrate confidence in the long-term growth of the semiconductor industry and SK hynix's corporate value at a time when volatility has intensified in Korea's stock market, particularly among semiconductor stocks.

Chey reportedly decided to buy the shares himself after concluding that SK hynix's stock had become significantly undervalued.

SK hynix shares have fallen sharply since reaching an all-time intraday high of 2.98 million won on June 25. They closed at 1.33 million won on Thursday after the stock lost more than half its value in just over a month.

The sell-off has added to concerns about the semiconductor industry's outlook and investor sentiment.

Chey previously brushed off the recent decline in SK hynix shares.

"Demand for memory chips will continue,” Chey said. “Thus, the long-term trend is upward. Instead of buying and selling, simply holding the shares is a better way to preserve your wealth."

BY HYEON YE-SEUL [[email protected]]