SK Group Chairman Chey Tae-won stated at a press conference on May 10 (local time) that SK Hynix would consider a stock split if more requests are received, responding to investor questions after the company's share price exceeded 2 million won. Chey clarified he has not yet received a proposal from the CFO on the matter and currently lacks specific details to provide. Stock splits divide a share's face value at a fixed ratio to increase the number of outstanding shares, lowering the per-share price to improve accessibility for retail investors.
Chey Tae-won Responds to Stock Split Inquiry at Press Conference
Chey Tae-won addressed the stock split question during an ADR Opening Bell event press conference on May 10 (local time). When asked whether SK Hynix is reviewing a stock split, Chey responded, "If more requests come, we will naturally consider it." He added, "I have not yet received such a proposal from the CFO, and the agenda has not been raised to me. At present, I do not have specific knowledge to answer in detail."
Investor discussions about a potential split began after SK Hynix's share price surpassed 2 million won per share. A stock split divides the face value of a share at a fixed ratio, increasing the number of issued shares. The absolute price per share decreases after the split, improving accessibility for small-scale investors. For example, a stock with a face value of 1,000 won and a market price of 1 million won per share could be divided into 10 shares with a face value of 100 won each.
Samsung Electronics and NVIDIA Stock Split Precedents
Samsung Electronics conducted a stock split in 2018. When the per-share price approached 2.6 million won, Samsung implemented a 50-to-1 split, reducing the face value from 5,000 won to 100 won and increasing the number of shares by 50 times. NVIDIA conducted a 10-to-1 stock split in 2024, lowering the per-share price from $1,200 to $120.
Stock splits lower the per-share price and stimulate trading activity. On the day Samsung Electronics relisted after its 2018 split, trading volume surged more than 100 times, setting a single-day trading volume record.
However, stock splits do not guarantee price increases. While splits can attract more investment by improving retail accessibility, they are merely divisions of existing shares. If a company's fundamentals do not support growth, a stock split cannot ensure price appreciation. Some analysts note that the proliferation of exchange-traded funds (ETFs) and fractional share trading has reduced the impact of stock splits as positive catalysts.
Market Analyst Notes Fundamentals Drive Long-Term Direction
A market source stated, "The long-term direction of SK Hynix's stock price should be seen as determined by fundamentals such as AI investment expansion, high-bandwidth memory (HBM) market growth, and earnings improvement."
FAQ
What did Chey Tae-won say about SK Hynix stock split on May 10?
Chey Tae-won stated at a press conference on May 10 (local time) that SK Hynix would consider a stock split if more requests are received. He clarified he has not yet received a proposal from the CFO and currently lacks specific details on the matter.
How did Samsung Electronics conduct its stock split in 2018?
Samsung Electronics implemented a 50-to-1 stock split in 2018, reducing the face value from 5,000 won to 100 won and increasing the number of shares by 50 times. On the relisting day, trading volume surged more than 100 times, setting a single-day record.
What factors determine SK Hynix's long-term stock direction according to market analysts?
A market source stated that fundamentals such as AI investment expansion, high-bandwidth memory (HBM) market growth, and earnings improvement determine the long-term direction of SK Hynix's stock price.
