SK Hynix purchased approximately 15.65 trillion won in corporate bonds over a one-month period ending on the 2nd, according to estimates from a securities firm. The purchases were driven by a surge in surplus funds resulting from an unprecedented boom in the semiconductor industry. The buying spree covered a wide range of bond categories including public corporation bonds, bank bonds, securities firm bonds, and card company bonds, with the scale approaching this month's government bond competitive bidding volume of 16 trillion won. Market participants are now watching closely to see whether SK Hynix's buying activity will expand into the government bond market.
SK Hynix Purchases 2.7 Trillion Won in Korea Electric Power Bonds
Korea Electric Power bonds were the most heavily purchased, with SK Hynix acquiring approximately 2.7 trillion won worth across five separate transactions. The company also made significant purchases of bank bonds, buying 1.4 trillion won in Nonghyup Bank bonds across three transactions and an estimated 1.05 trillion won in Shinhan Bank bonds over two transactions.
Financial Sector Bond Purchases Total 3.87 Trillion Won
SK Hynix's purchases of financial holding company bonds approached 1.4 trillion won. The company acquired Woori Financial Group bonds issued on the 25th of last month, followed by large-scale purchases of Shinhan, Hana, BNK, and NH Nonghyup Financial Group bonds all issued on the 26th of last month. Securities firm bond purchases totaled approximately 1.03 trillion won, with estimated purchases of 240 billion won in Kiwoom Securities bonds, 400 billion won in KB Securities bonds, and 390 billion won in Meritz Securities bonds. Card company bond purchases reached approximately 1.5 trillion won, with three card company bond issues from the 5th of last month acquired at levels 4 basis points below the民평 rate. Among capital company bonds, Hyundai Capital was the only name on the purchase list, with an estimated 300 billion won in bonds issued on the 5th acquired by SK Hynix.
Market Participants Note Limited Impact on Secondary Bond Trading
Despite SK Hynix's large-scale purchases, some market participants assess that upward pressure has not spread widely across the secondary bond market. A bond dealer at a securities firm stated, "The warmth is spreading only to some areas because they are buying newly issued bonds rather than bonds accumulated in the market. Astronomical numbers are being mentioned, but the majority of bond participants are left out."
Market Watches for Potential Government Bond Purchases
The bond market is paying close attention to whether SK Hynix will purchase government bonds in the future. If their buying activity flows into government bonds, it could serve as a factor to somewhat stabilize the market amid a bearish bond market atmosphere intensified by steep economic growth driven by the semiconductor sector. A market participant stated, "Surplus funds appear to be accumulating faster due to favorable semiconductor industry conditions. It's only a matter of time, and I think investment in government bonds is an unavoidable next step."
FAQ
How much did SK Hynix spend on corporate bonds over the one-month period ending on the 2nd?
SK Hynix purchased approximately 15.65 trillion won in corporate bonds over the one-month period ending on the 2nd, according to estimates from a securities firm.
Which bonds did SK Hynix purchase the most?
Korea Electric Power bonds were the most heavily purchased, with SK Hynix acquiring approximately 2.7 trillion won worth across five separate transactions. The company also made significant purchases of bank bonds, financial holding company bonds, securities firm bonds, and card company bonds.
