SK Hynix Chairman Choi Tae-won stated on May 10 (local time) that the company would consider a stock split if more requests are received, during a press conference following the ADR opening bell ceremony in New York. The statement came as SK Hynix stocks trade above 2 million won per share, prompting investor discussions about accessibility. Stock splits, which divide share face value to increase outstanding shares, have historically improved retail investor access — Samsung Electronics' 2018 50-to-1 split when trading at 2.65 million won per share expanded its shareholder base from 140,000 to 750,000 within one year.
SK Hynix Chairman Addresses Stock Split Consideration at ADR Ceremony
Chairman Choi Tae-won responded to questions about stock split plans at the May 10 (local time) press conference, stating "if more requests come, we will naturally consider it." He clarified that "the CFO has not yet made such a proposal, and the agenda has not reached me," adding "I do not currently have specific knowledge to answer in detail." The remarks followed investor discussions as SK Hynix's single-share price exceeded 2 million won. Stock splits divide a stock's face value at a fixed ratio to increase the number of issued shares, lowering the absolute price per share and potentially improving accessibility for small-scale investors.
Samsung Electronics 2018 Stock Split Expanded Shareholder Base to 4.2 Million
Samsung Electronics conducted a 50-to-1 stock split in 2018 when shares traded around 2.65 million won, reducing the price to 53,000 won per share at the start of trading. The current Samsung Electronics stock price stands around 270,000 won — without the split, the per-share price would reach 13.5 million won. The split increased Samsung Electronics' minority shareholders from 140,000 at the end of 2017 to 750,000 in 2018, reaching 4.2 million as of the most recent year-end. Korea Exchange previously encouraged corporate stock splits, leading Amorepacific to conduct a 10-to-1 split in 2015 when shares approached 3 million won, and Naver to execute a 5-to-1 split in 2018, lowering its per-share price from the 700,000 won range to the 140,000 won range. SK Telecom and Kakao also completed stock splits.
Stock Splits Do Not Guarantee Price Increases, Analysts Note
Stock splits do not automatically drive share price appreciation. While splits can attract more investment capital by improving small investor accessibility, they represent simple division and cannot guarantee price gains without strong corporate fundamentals. The proliferation of alternative investment products such as exchange-traded funds (ETFs) and fractional share trading has reduced the positive impact of stock splits compared to the past. However, analysts note that SK Hynix's solid fundamentals despite recent memory market adjustments could support share price strength if a split improves accessibility.
FAQ
What did SK Hynix Chairman Choi Tae-won say about a stock split on May 10?
Chairman Choi Tae-won stated at the May 10 (local time) ADR opening bell press conference that SK Hynix would consider a stock split if more requests are received, though he clarified no proposal has been received from the CFO and the agenda has not reached him yet.
How did Samsung Electronics' 2018 stock split affect its shareholder base?
Samsung Electronics' 50-to-1 stock split in 2018 increased its minority shareholders from 140,000 at the end of 2017 to 750,000 in 2018, reaching 4.2 million as of the most recent year-end, while reducing the per-share price from around 2.65 million won to 53,000 won at the start of trading.
