Heungkuk Asset Management sent a shareholder letter to SK hynix(000660)'s board criticizing the decision-making behind the large-scale investment plan for a semiconductor cluster in the southwest region (Honam region), then abruptly withdrew it a day later. Heungkuk Asset Management drew a line, saying the letter reflected the personal opinion of the working-level manager in charge, not the company's official position.

Lee Jae-myung, President; Lee Jae-yong, Samsung Electronics chairman; and Chey Tae-won, SK Group chairman, join hands at the National Briefing on the Three Mega Projects for Korea's Great Leap Forward at the State Guest House of the Blue House./Courtesy of News1.

According to the financial investment industry on the 9th, the equity investment division at Heungkuk Asset Management sent a public letter to the SK hynix board the previous afternoon titled "Where is the place for ordinary shareholders?" The letter criticized the fact that the recently announced large-scale investment plan was made public externally before board review and resolution.

The equity investment division said, "The sight of a major shareholder (Chey Tae-won, chairman of SK Group) who is not a board member announcing a large-scale investment plan first alongside the head of the administration is far from the global standard of board-centric management," calling for improvements in corporate governance.

Chairman Chey is a non-registered executive at SK hynix and not a member of the board. However, in terms of governance, he leads SK Corp., the largest shareholder of SK Square, which is the largest shareholder of SK hynix.

The letter also called for expanding shareholder returns. The equity investment division said, "Amid an unprecedented boom in the industry, cash flow has markedly improved, and while employee compensation and massive investments are being announced, shareholders have no place anywhere," adding, "Micron, for its part, recently announced a policy to return all of its free cash flow (FCF) to shareholders, but SK hynix has instead seen its dividend payout ratio retreat."

However, Heungkuk Asset Management withdrew the letter immediately that day. Heungkuk Asset Management said, "The letter sent under the name of the equity investment division reflects the personal opinion of the head of the division, not the company's position," adding, "Not only does the letter differ from the company's official stance, but some parts could cause unnecessary misunderstanding, so we officially withdrew the letter through the responsible department."

※ This article has been translated by AI. Share your feedback here.