SEOUL, Mar. 26 (Korea Bizwire) — South Korean chipmaker SK hynix Inc. has emerged as a key affiliate of SK Group by making up nearly half of the conglomerates’ market capitalization, industry watchers said Monday.
SK hynix, purchased by SK Group exactly six years ago, when the company posted a net loss of 159 billion won (US$147 million), but this rebounded to reach a net profit of 10.6 trillion won in 2017. Its operating loss of 227.3 billion won also changed to a profit of 13.7 trillion won over the cited period.
The sales also jumped nearly threefold from 10.1 trillion won to 30.1 trillion won after becoming part of South Korea’s third-largest business conglomerate.
Industry tracker CEO Score estimates showed SK hynix accounted for 43.9 percent of the parent group’s combined market capitalization last year, growing sharply from 26.1 percent tallied in 2012.
Reflecting the growing presence of SK hynix within the group, the chipmaker also purchased a stake worth 10.6 billion won for a plane owned by SK networks Co. The aircraft, shared by affiliates of SK Group, is used by the group’s head Chey Tae-won and other key executives.
“The need for the airplane has been increasing as SK hynix is actively rolling out overseas businesses,” a group official said. “As (SK hynix) also posted a record profit last year, the company also holds sufficient cash, which has been utilized in the purchase.”
The official also said Chey has been making frequent visits to SK hynix, hinting that the conglomerate’s top leadership is paying close attention to the chipmaking business.