SK Hynix's investments in the South Korean bond market reportedly exceed 20 trillion won this year

Source: Global Market Report

According to industry sources on Wednesday, South Korean chip manufacturing company SK Hynix is estimated to have purchased bonds worth about 20 trillion won (approximately $13.2 billion) this year, as the chip industry boom has led to record profits and a significant increase in its cash reserves.

Sources revealed that the chip giant's acquisitions are wide-ranging, covering various high-credit financial products, including bonds from Korea Electric Power Corporation, other public institutions, banks, financial institutions, securities firms, as well as specialized credit finance companies.

Industry insiders noted that SK Hynix, with substantial growth in cash holdings driven by record semiconductor profits, has become one of the largest investors in South Korea's credit market, requiring short-term investment instruments to manage excess liquidity.

In the first quarter of this year, SK Hynix reported revenues of 52 trillion won and operating profits of 37 trillion won. Its total cash and cash equivalents reached 54.3 trillion won, an increase of 19.4 trillion won compared to three months earlier.

Fueled by strong earnings momentum, SK Hynix's stock price has soared by over 1,300% since its low point in April last year.

On June 22, the company briefly surpassed Samsung Electronics, becoming the largest publicly traded company in South Korea by market capitalization for the first time in 25 years.

SK Hynix and Samsung Electronics are still competing for the top spot in terms of market value.