"Should You Buy Hynix Tomorrow?"... What Is the 'Rumor About Why Chey Tae-won Said to Buy the Stock'?

'2.5% Dividend, Stock Split' Rumors Spread

US Disclosure Rule Lifted... Market Awaits Shareholder Return Measures

Amid repeated sharp rises and falls that have maximized volatility in the domestic stock market, both anticipation and caution are swelling around SK hynix. This is driven by the widespread and indiscriminate circulation of so-called "rumors" that suggest the possibility of an expanded dividend and a stock split at SK hynix, coinciding with SK Group Chairman Chey Tae-won's direct purchase of company shares.

With this converging with the timeline for the lifting of disclosure regulations related to SK hynix’s US stock market listing, all eyes in the market are focused on the scale of shareholder value enhancement measures that SK hynix may announce.

Employees are leaving work at the SK hynix headquarters in Icheon, Gyeonggi Province.

On August 4, a post titled "The Reason Chairman Chey Tae-won Told Investors to Buy SK hynix" spread rapidly on social media, sharply influencing investor sentiment.

In the post, the author claimed that SK hynix is planning to significantly raise its dividend yield to about 2.5% based on a stock price of 2 million won, and after monitoring market trends following the US midterm elections, will implement a large-scale stock split similar to what Samsung Electronics did in the past. The writer also left open the possibility that, when performance improves sharply, SK hynix could temporarily raise dividends significantly in a manner akin to Samsung Electronics' previous special dividend.

Although the author prefaced the post as merely "a rumor," such speculation was sufficient to stimulate investor optimism. Some investors expressed hope that, even for high-PER (price-earnings ratio) tech stocks, dividend increases are possible in periods of rising profits. There are even signs of overheating, such as investors preparing loans to trade in the short term. On the other hand, some pointed out that with competition in the high-bandwidth memory (HBM) market intensifying, such expectations may be excessive.

Is Chey Tae-won's '4.8 Billion Won Purchase' the Signal?

This swirl of rumors is set against the backdrop of SK Group Chairman Chey Tae-won's recent activity. According to the Financial Supervisory Service’s electronic disclosure system, on July 30, Chairman Chey purchased 3,620 common shares of SK hynix on the open market for about 4.8 billion won. This was his initial acquisition, having previously held no shares.

SK Group explained that this reflects his conviction in the value of the semiconductor business and his commitment to responsible management during a period of falling share prices. In fact, at the Jeju Forum for the Korea Chamber of Commerce and Industry, Chairman Chey expressed strong confidence by stating, "Don't buy and sell—just hold."

Market Stirs with Stock Split Expectations

The possibility of a stock split has especially captured investors' attention. Expectations have grown as Chey’s previous remark—"If shareholder requests increase, we can consider it"—has resurfaced.

In front of the SK hynix headquarters in Icheon, Gyeonggi Province. Photo by Yonhap News

A stock split increases the number of shares issued by reducing the par value per share, thereby lowering the share price and making the stock more accessible to investors. As seen in the case of Samsung Electronics, it can act as a catalyst for increased trading volume and a temporary improvement in supply and demand dynamics.

However, experts caution against interpreting a stock split as a direct boost to corporate value. They emphasize that it is simply a technical move to enhance liquidity and does not directly affect fundamentals such as company performance or competitiveness.

US Disclosure Rule to Be Lifted... Market Focused on the Night of August 4

The market’s attention is now fixed not just on rumors, but on the concrete shareholder return policy SK hynix may unveil. Industry experts point out that the reason specific plans have not been publicly announced so far is regulatory disclosure requirements associated with its US listing. Under US securities laws, newly listed companies cannot release material nondisclosed information not included in SEC filings for 25 days after their initial public offering. Having listed its American Depositary Receipts (ADRs) on the NASDAQ on July 10, SK hynix was compelled to maintain silence to avoid legal risk.

As this regulation is officially lifted on the night of August 4, Korea time (after the US market opens), expectations are high that SK hynix will break its silence and unveil a major shareholder return plan.

This content was produced with the assistance of AI translation services.