SK Hynix, Armed with Massive Cash Reserves, Quietly Emerges as a Major Buyer in Korea's Bond Market

Odaily News: The AI boom has driven global tech giants to raise billions of dollars through bond issuance, but for at least one major chipmaker, its participation in the credit market goes beyond financing. According to insiders, with its growing cash reserves, South Korean chip giant SK Hynix is expanding its investments in the domestic corporate bond market. Multiple credit analysts and market participants estimate that SK Hynix has purchased roughly 10 trillion to 40 trillion Korean won (approximately $7 billion to $28 billion) in bonds this year, with the higher end of the range also including commercial paper. SK Hynix recently posted a new job opening, further signaling its increased activity in the bond market. The role involves managing, strategizing, and hedging the company's funds, including fixed-income investments spanning government bonds, corporate bonds, and short-term debt instruments. Globally, it is not uncommon for companies to periodically invest in the credit market when holding excess cash, but such direct participation by corporate funds remains relatively notable in a bond market typically dominated by institutional investors. Despite significantly increasing capital expenditures in recent years, SK Hynix's investable funds have continued to accumulate. The company's cash and cash equivalents reached 88 trillion Korean won at the end of the second quarter, up nearly 62% from the previous quarter. (Jin Shi)