Business · Companies · 3 hrs ago
SK Hynix and SK Square fall amid Solidigm listing debate
SK Hynix and SK Square shares fell on October 20 amid growing debate over a possible US listing for Solidigm.
Solidigm is SK Hynix’s US NAND flash subsidiary, acquired through Intel’s NAND business.
Reports say it is preparing for a Nasdaq listing, but SK Hynix says no listing plan has been confirmed.
Critics warn the listing could dilute existing shareholders’ interests, because investors in the parent company could share less in Solidigm’s future value.
Solidigm’s layered ownership structure has raised concerns about listing a subsidiary while its parent is already publicly traded.
South Korea’s financial authorities are reviewing whether local rules apply to the proposed overseas listing, and are awaiting a formal interpretation on whether a domestic securities filing is required.
The listing’s timing and prospects remain uncertain, and the companies have not announced a confirmed schedule.
SK Hynix and SK Square shares fell sharply on October 20 amid debate over whether Solidigm’s planned Nasdaq listing would hurt existing shareholders.
Solidigm is SK Hynix’s US NAND flash subsidiary, and reports said it was preparing for a US listing.
Critics say the listing could dilute the value of SK Hynix shareholders’ interests, while some industry observers argue it may be permissible.
South Korea’s financial authorities are reviewing whether the plan falls under domestic rules on overlapping listings.
Solidigm’s listing could also face uncertainty over whether it must undergo review of a domestic securities filing.
- Who
- SK Hynix and SK Square, amid debate over a possible listing of Solidigm, SK Hynix’s US NAND flash subsidiary.
- What
- SK Hynix and SK Square shares fell as concerns grew that Solidigm’s planned Nasdaq listing could dilute existing shareholders’ interests.
- When
- October 20, 2026. SK Hynix and SK Square were trading lower at 9:30 a.m.
- Where
- South Korea’s stock market; Solidigm is preparing for a possible Nasdaq listing in the United States.
- Why
- Investors were concerned about overlapping listings and possible harm to existing shareholders. Financial authorities were also reviewing whether domestic filing rules apply.
Supporters of Solidigm’s listing
Critics of Solidigm’s listing
Purpose
Supporters of Solidigm’s listing
A US listing could help raise funding for investment, including a proposed local factory.
Critics of Solidigm’s listing
The listing could dilute SK Hynix shareholders’ interests and allow gains to accrue to the listed subsidiary and controlling shareholders.
Regulatory view
Supporters of Solidigm’s listing
Some industry observers say the listing may be permissible, given Solidigm was acquired and is an overseas company.
Critics of Solidigm’s listing
Critics say the plan amounts to overlapping listings and could undermine the value of the parent company.
Solidigm recorded losses of more than 7 trillion won over about two years, according to MBC.
Financial authorities and the Korea Exchange began applying rules on overlapping listings, according to Newsis.
Financial Supervisory Service governor Lee Chan-jin said authorities were examining whether Solidigm’s planned listing falls under overlapping-listing rules.
At 9:30 a.m., SK Hynix shares were down 5.72% and SK Square shares were down 6.03%.
- SK Hynix shares
- Down 5.72% to 1,204,000 won at 9:30 a.m. on October 20
- SK Square shares
- Down 6.03% to 733,000 won at 9:30 a.m. on October 20
- Solidigm listing venue
- Nasdaq
- Solidigm ownership chain
- SK → SK Square → SK Hynix → AI Company → Solidigm
- Possible offering size
- Up to US$10 billion, according to market estimates reported by Newsis
3 sources
What people are saying
We are continuing to monitor the Solidigm issue.
If Solidigm lists and the number of shareholders increases, the share of SK Hynix shareholders will shrink, while SK affiliates that invested in AI Company, which owns Solidigm, will take the listing proceeds as they are.
From the perspective of ordinary shareholders, this is a factor that could impose a penalty.
We will use long-term shareholder value as an important criterion for making decisions.