[fn Editorial] SK Hynix's Best Performance, Continue Innovation to Maintain Top Position

SK Hynix broke its record for the highest performance again in just two quarters. The operating profit for the 2nd and 4th quarters was 9.2129 trillion won, a 68.5% increase from the same period last year. Sales increased by 35.4% to 22.232 trillion won, an astonishing achievement.

SK Hynix, which was the second-largest semiconductor company in Korea after Samsung Electronics, is now advancing from being the top semiconductor company in Korea to becoming the global number one. It surpassed Samsung Electronics in operating profit for the first time in the fourth quarter of last year and earned twice as much in the second and fourth quarters of this year. All of this is the result of early recognition of the importance of high-value products like high-bandwidth memory (HBM) and concentrating corporate capabilities. The remarkable growth in the 2nd and 4th quarters was also thanks to increased sales of the 5th generation HBM3E 12-layer.

Although Samsung Electronics is also pouring all its efforts into research and development for a comeback, it seems it will take some time for results to appear. To regain its reputation, it will need to make even greater efforts. From a national perspective, it is fortunate that SK Hynix's future predictions and visible results are filling the gap left by Samsung Electronics. If not, it would not have been possible to stop the race of Taiwan's TSMC and others. If Samsung Electronics recovers its lagging technology and works alongside SK Hynix, it is believed that Korea can regain its status as the global number one semiconductor country.

The problem starts now. In reality, where global competition is intensifying, we must focus more on technological innovation to maintain the status of the top semiconductor country and reach the top position in each field. Taiwan is investing heavily to advance further, and the United States and Japan are also waging all-out battles with their destinies at stake. China's momentum is even fiercer. It is not just chasing us but also leading in some areas.

Recognizing this seriousness, the government should lift regulations and focus more administrative power on various supports, including tax benefits. Unfortunately, while the lights in the research labs of competing countries are brightly lit 24 hours a day, we have not even resolved the 52-hour workweek regulation in the semiconductor field. In addition, policies such as raising corporate taxes and amending commercial laws are hindering management, making it seem as if the clock is turning backward.

Past cases have proven that if we miss the timing once, it can take twice as long to recreate glory. Many leading Japanese companies and Samsung Electronics are examples of this. Now, when the Fourth Industrial Revolution, including artificial intelligence (AI), is unfolding, it can be said that this is a very critical point that can determine the future of the Korean economy.

The government must also be aware of this. It is commendable to appoint private experts in AI and invest a lot of budget. However, we cannot be satisfied with that. There is no need to emphasize more the importance of nurturing talent and attracting talent. Above all, creating a business environment where companies can operate freely is urgent.