SK Hynix set to benefit as South Korea’s ruling party seeks to ease capital-raising rules
A PR track is demonstrated at the laboratory of the department of semiconductor engineering at Korea University in Seoul, South Korea, June 11, 2026. REUTERS/Kim Hong-Ji
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
SEOUL, July 14 : South Korea’s ruling party is seeking to make it easier for chipmaker SK Hynix to set up ventures to build factories with outside investors — a move that follows a government push to position the country as an AI powerhouse.
Members of President Lee Jae Myung’s Democratic Party of Korea have proposed amending a law pertaining to “strategic industries with cutting-edge technologies” that currently forbids a subsidiary of a subsidiary from such a move.
If passed, chipmaker SK Hynix — which is a unit of SK Square which is in turn a unit of SK Inc — will be able to attract outside capital for its new fabs if it retains a stake of at least 50 per cent in such a joint venture.
The law primarily affects SK Hynix, the leading developer of high-bandwidth memory used in Nvidia’s AI processors. Other major South Korean conglomerates maintain less direct control over their prized units, instead exerting control through a complicated web of cross-shareholdings.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
SK Hynix raised $26.5 billion last week in a high-profile U.S. share sale, but is expected to need far more funds to finance aggressive chip expansion plans.
The government has outlined projects that aim to build new semiconductor production sites in the country’s southwest. SK Hynix and Samsung Electronics have pledged to invest 400 trillion won ($268 billion) each.
South Korea needs “fast construction of fabs to win against other major countries and companies,” the lawmakers said in the draft bill, adding that companies can no longer cover such costs with traditional capital raising.
The proposed amendment would also require any new venture to have its headquarters or main office outside the greater Seoul area, in line with government efforts to stimulate regional economies, the lawmakers said.
SK Hynix’s Seoul-listed shares were down 8.6 per cent in Tuesday trade, extending sharp losses on Monday as euphoria surrounding its Nasdaq debut fades.
($1 = 1,493.5000 won)
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
About The Author
