SK hynix Targets 100 Trillion Won in Net Cash to Strengthen Finances

SK hynix Inc. has made a bold move by announcing plans to secure 100 trillion won in net cash and pursue a listing on the U.S. stock market within this year. With this investment capacity that can withstand industry cycles, the company aims to cement its leadership in artificial intelligence (AI) semiconductors.
Noh-Jung Kwak, president of SK hynix Inc., stated at the 78th annual shareholders’ meeting held on the 25th at the company’s headquarters in Icheon, Gyeonggi Province, "To compete with global top-tier companies and support structural demand growth, a stronger level of financial soundness is essential." He added, "We will secure more than 100 trillion won in net cash so that we can carry out long-term, strategic investments without wavering under any business environment."
Net cash refers to the amount remaining after deducting borrowed funds from a company’s cash holdings, and represents the "effective financial capacity" available for investments or mergers and acquisitions (M&A). The plan to secure more than 100 trillion won in net cash is seen as more than just hoarding cash; it signals an intention to continue long-term investment in the capital-intensive semiconductor industry without being swayed by market cycles. Kwak stressed, "Ample cash is a strategic asset for future growth and an excellent insurance policy against market uncertainty," adding, "We will build financial strength at a top global level to lay the foundation for long-term growth."
The company has also begun procedures for a U.S. stock market listing within this year. The day before, it confidentially submitted a registration statement for an American Depositary Receipt (ADR) listing to the United States Securities and Exchange Commission (SEC). An ADR is a form of indirect listing different from an initial public offering (IPO), in which a U.S. bank issues shares backed by securities deposited by a foreign company so they can be traded in the local market. This was the method used when Taiwan Semiconductor Manufacturing Company Limited (TSMC) pursued its U.S. listing. Industry observers view SK hynix Inc.’s push to list in the United States as a strategy to broaden its funding channels and expand its investment capacity.
one1@fnnews.com Jung Won-il Reporter