SK HERCULES HELD A HUGE AMOUNT OF CASH AND BECAME AN IMPORTANT BUYER IN KOREA'S DEBT MARKET

ON 7 AUGUST, ACCORDING TO NEWS SOURCES, THE AI BOOM PUSHED THE GLOBAL SCIENCE AND TECHNOLOGY GIANT TO RAISE BILLIONS OF DOLLARS THROUGH BOND ISSUES, BUT FOR AT LEAST ONE LARGE CHIP MANUFACTURER ITS PARTICIPATION IN THE CREDIT MARKET WENT BEYOND FINANCING. ACCORDING TO INFORMED SOURCES, WITH INCREASING CASH RESERVES, THE KOREAN CHIP GIANT SK HERCULES IS EXPANDING HIS OWN INVESTMENT IN THE KOREAN LOCAL CORPORATE DEBT MARKET. MULTIPLE CREDIT ANALYSTS AND MARKETERS ESTIMATE THAT SK HERCULES BOUGHT BONDS THIS YEAR ON A SCALE OF ABOUT 10 TRILLION WON TO 40 TRILLION WON (APPROXIMATELY $7 BILLION TO $28 BILLION), OF WHICH THE HIGHER RANGE ALSO INCLUDES COMMERCIAL PAPER. THE RECENT ISSUANCE OF A NEW RECRUITMENT POSITION BY SK HERCULES IS FURTHER EVIDENCE THAT THE COMPANY IS INCREASING ITS BOND MARKET ACTIVITIES. THE POSITION IS RESPONSIBLE FOR MANAGING, DEVELOPING STRATEGIES AND HEDGE CORPORATE FUNDS, INCLUDING FIXED-INCOME INVESTMENTS, WHICH COVER GOVERNMENT BONDS, CORPORATE BONDS AND SHORT-TERM DEBT INSTRUMENTS. AT THE GLOBAL LEVEL, IT IS NOT UNCOMMON FOR ENTERPRISES TO HAVE A PHASED INVESTMENT CREDIT MARKET WHEN THEY OWN ADDITIONAL CASH, BUT THE DIRECT INVOLVEMENT OF SUCH ENTERPRISES IN THE BOND MARKET, WHICH IS USUALLY DOMINATED BY INSTITUTIONAL INVESTORS, REMAINS PROMINENT. DESPITE THE SIGNIFICANT INCREASE IN CAPITAL EXPENDITURE BY SK HERCULES IN RECENT YEARS, THE ACCUMULATION OF INVESTABLE FUNDS HAS CONTINUED. THE COMPANY ' S CASH AND CASH EQUIVALENTS REACHED 88 TRILLION WON AT THE END OF THE SECOND QUARTER, AN INCREASE OF NEARLY 62 PER CENT OVER THE PREVIOUS QUARTER. KIM XIAN