SK Hynix surpasses Samsung Electronics to become the most valuable company in Korea

Closing the trading session on June 22, shares of memory chip company SK Hynix (Korea) increased 5.6% to 2.9 million won, increasing the company’s capitalization to 2.08 million won (1,350 billion USD). Meanwhile, Samsung Electronics shares decreased by 0.14%, bringing the capitalization to 2.06 million billion won, not including preferred shares.

SK Hynix thus surpassed its competitors to become the most valuable listed company in Korea. Samsung has held this position since 2000.

SK Hynix shares this year have increased more than 340% and are one of the businesses that have benefited the most from the global AI fever. They are currently the primary supplier of high bandwidth memory (HBM) to AI systems from companies like Nvidia and Google.

AI has changed the landscape of the global semiconductor industry, turning memory chips from common goods into essential components in the operating infrastructure of applications such as ChatGPT and other advanced AI models. SK Hynix focuses on memory chips, while Samsung also produces logic chips and other consumer electronics such as smartphones and TVs.

“The emergence of custom AI chips fundamentally changes the economic structure of this industry, helping SK Hynix rise to a leading position,” said Kim Sunwoo – senior analyst at Meritz Securities.

Samsung Electronics said that if including preferred shares, its capitalization is currently 2.24 million billion won. However, SK Hynix’s achievement is still considered one of the most spectacular comebacks in Korean business history.

In 2002, Hynix Semiconductor (SK Hynix’s predecessor) was on the verge of being sold to chip company Micron, after incurring huge debt from its rapid expansion strategy. However, the deal eventually fell apart, leaving the company under the control of creditors for nearly a decade.

In 2003, Hynix shares plummeted to only 135 won per unit. Years later, their business results still depend on the boom and bust cycle of the memory chip industry.

Two years ago, global memory chip prices plummeted, causing SK Hynix to report an operating loss of 7,730 billion won. The company began to recover a year later, thanks to an accelerating AI wave and heavy investments from global tech giants. SK Hynix therefore reported a record operating profit of 23,500 billion won in 2024.

Analysts believe that SK Hynix benefits from its decision to continue investing in HBM during a period of recession in the memory chip industry. By 2025, SK Hynix will hold 61% of the global HBM market share, far ahead of Samsung with 17% and Micron with 21%.