Special Edition: SK Chairman Chey Tae-won on SK Hynix's US Debut

Summary

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Bloomberg Tech – Episode Summary

Episode: SK Hynix ADRs Surge 14% After Record $26.5 Billion US Offering
Date: July 10, 2026
Host: Bloomberg (Ed Ludlow)
Guest: Che Taewon, Chairman of SK Group

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Episode Overview

This episode spotlights the historic $26.5 billion US ADR (American Depositary Receipt) offering by SK Hynix, marking the largest first-time US share sale by a foreign company. Host Ed Ludlow interviews SK Group Chairman Che Taewon about the rationale for the offering, trends in the memory and AI industries, and SK Group’s global ambitions and investments in technology infrastructure.

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Key Discussion Points & Insights

The Rationale Behind the Record US Listing

• Timing for US Listing:

  • Che Taewon notes this marks a long-awaited milestone. The move opens access to US capital markets, described as “the earliest moment possible.”
    • “So now dream comes true. People asking why now? ... this is kind of oldest moment. We can, we can have the earliest moment possible.” (02:06, Che Taewon)

• Size and Future Potential of ADRs:

  • $26.5 billion is significant but, in SK’s global context, not enormous. Che Taewon hints at the possibility of additional equity issues—if justified by performance and demand.
    • “Try to expand that our ideal size ... once we have the better return then there is a more demand ... we can have that upside potentials and I see that the world this moment.” (02:56, Che Taewon)

• Potential for Other Capital Market Activity:

  • SK Hynix currently has sufficient cash, but other SK Group companies could consider global bond issuance in the future. (04:20, Che Taewon)

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AI Boom and Memory Supply Dynamics

• AI Era Driving Memory Demand:

  • Che Taewon articulates how the rise of AI, especially large language models (LLMs) and inference tasks, has fundamentally changed the memory business. Modern AI creates enormous ‘KV caching’ needs—analogous to the way the brain stores information.
    • "AI actually requires more the inference phase ... you need that huge amount of the memory. Well, that's the. That's the AI the era. So I guess that memory business is turning to that. Well, it's a different stage.” (07:09, Che Taewon)

• From Cyclical to Structural Demand:

  • Previously, memory demand was cyclical, tied to consumer hardware. Now, with AI agents multiplying, demand is decoupled from people and hardware, becoming structural and accelerating exponentially.

• Industry Peers, Capacity, and Constraints:

  • SK Hynix aims to double capacity in five years but customers urge even larger increases. Che reports customers say doubling “is not enough … we need that more.”
    • “My customer said that that's not enough. We need that more. ... demand will be exponentially grow in the future based on that customer demand.” (08:21, Che Taewon)

• Duration of Tight Supply & Future Outlook:

  • Uncertainty exists over how long supply constraints will last, but Che expects high demand until “society has said there was some settlement with AGI.”
    • “I don’t know how long but I think it's going to be until ... society has ... some settlement with AGI ... until then while we need that a lot of memories.” (09:34, Che Taewon)

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Reflections on the Hynix Acquisition and Strategic Evolution

• The Risky Bet of 2012:

  • Che recounts acquiring Hynix in 2012 when it was distressed, burdened by debt, and considered overly cyclical and high-risk. His view: memory manufacturing is highly sophisticated, and mastering it confers broad technological competence.
    • “...if you see that there were a different angle this memory manufacturing ... most sophisticated the manufacturing business ... once you make that little chips ... 380 billion transistor in it.” (12:24, Che Taewon)

• Transformation Via Long-Term Agreements:

  • Industry shift from boom-bust to longer-term stability due to customer-driven demand for long-term supply contracts; not initiated by SK but by the industry’s need for security.
    • “It's not cyclical business anymore. If we had ... long term agreement ... actually created another opportunity ... to change our business model.” (14:30, Che Taewon)

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Investment Priorities and Vision for Growth

• Data Center Expansion:

  • Plans include nearly $1 trillion investment over 10 years targeting data centers (15 GW global footprint, 5 GW in Korea, remainder globally, including US), viewing power availability and price as critical to site selection.
    • “Most important matter is a data center business ... almost at the $1 trillion investment in the next 10 years ... My Target is about 15 gigawatt.” (15:08, Che Taewon)

• Beyond Memory:

  • Broader SK Group is investing in LLMs, AI applications, robotics, and healthcare.
    • “There’s a bunch of opportunities ... we’ve been actually trying to pursuing ... all those business opportunities in the future.” (16:51, Che Taewon)

• Talent—A Central Challenge and Priority:

  • Talent shortage is pronounced in the chip industry. US ADRs help attract skilled workers globally, supporting recruitment and retention via financial incentives like stock options.
    • “I try to recruiting ... more the talent and that's the kind of important things. And I'm asking that our CEOs ... your job is to secure that talent in the future.” (17:59, Che Taewon)

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Competitive Edge and Stakeholder Philosophy

• Defining Advantage: “One Team” and Partnerships:

  • SK Hynix’s biggest advantage is a unified team and a policy never to compete with customers, facilitating trusted partnerships.
    • “One team made it with a really one big historical achievement now ... we don’t actually compete with any customers.” (19:14, Che Taewon & 20:00, Che Taewon)

• On Competing With Samsung:

  • Che downplays rivalry, focusing on stakeholder happiness over chasing specific competitors.
    • “I don’t want to answer those kind of questions ... my main goal is that ... make our stakeholder happy.” (20:25, Che Taewon)

• Stakeholder Balance:

  • Profit, supply, and employee happiness are all priorities, requiring careful balance.
    • “I cannot just satisfy ... every stakeholder but ... we had a certain balance ... happy company make the happy wizard. So that's a simple.” (21:06, Che Taewon)

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Memory Innovation: Flash, NAND, and “Memory as a Service”

• Memory Storage and Service Model:
  • Differentiates DRAM (instant, fast) and NAND/flash (storage for “cold data”), with ongoing investments in both. SK is exploring “memory as a service,” where solutions are tailored via hardware and software for customer needs.
    • “We could actually memory services like memory as a service in the future ... solve as a kind of services rather than just produce it just a commodity.” (24:11, 24:37, Che Taewon)

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AI Bubble, Cost, and the Road Ahead

• AI Cost Trajectory:

  • The cost per AI token has dropped 5-10x over three years; SK is working to further lower it, seeing this as fundamental to AI democratization.
    • “Within three years actually token cost is about 1/5 or the 1/10 ... direction is goes there so that's a kind of ecosystem for the AI.” (26:34, Che Taewon)

• No “AI Bubble”:

  • Che distinguishes real technology advances from market overshooting: “stock market always ... some overshooting ... technology is real.” AI is early-stage, likened to “a four-year-old baby,” with much maturity to come.
    • “These AI things right now is a little immature ... only four years old baby. But when you become the college boy ... much more mature.” (28:30, Che Taewon)

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Global Relations and Geopolitics

• Commitment to the US:

  • SK’s US investments already top $35B, spanning batteries, bio, chips, and startups. Plans call for “much, much, much bigger” sums.
    • “We already invested in 35 but ... my plan is that a much bigger number so bigger than 35. Much, much, much bigger than 35.” (29:21, Che Taewon)

• China Market Approach:

  • Che highlights China’s scale (over one million STEM grads annually) and distinctive AI strategies aimed at lower-cost tokens, contrasting with the US’s focus on top-tier quality.
    • “Annually ... more than the million students ... mostly ... apply to the tech area. ... China is focused on ... creating cheaper token ... US focused on top niche market.” (30:58, Che Taewon)

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Notable Quotes & Memorable Moments

• On Seizing the Moment:
  “So now dream comes true. People asking why now? ... this is kind of oldest moment. We can, we can have the earliest moment possible.” (02:06, Che Taewon)

• On AI & Memory:
  “The demand is actually limited by that number of the people. But in a era it’s different ... every agent needed a lot of memories ... That’s the AI the era.” (07:09, Che Taewon)

• On Transforming the Business Model:
  “It's not cyclical business anymore. If we had ... long term agreement ... actually created another opportunity ... to change our business model.” (14:30, Che Taewon)

• On Talent:
  “I try to recruiting ... more the talent ... your job is to secure that talent in the future.” (17:59, Che Taewon)

• On No Direct Competition With Customers:
  “We don’t actually compete with any customers ... that gives us a lot of room to actually partnership in the future.” (20:00, Che Taewon)

• On AI Cost:
  “Within three years actually token cost is about 1/5 or the 1/10 ... direction is goes there so that's a kind of ecosystem for the AI.” (26:34, Che Taewon)

• On the Future of AI:
  “These AI things right now is a little immature ... only four years old baby. But when you become the college boy ... much more mature.” (28:30, Che Taewon)

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Timestamps of Key Segments

• [01:37] Introduction and historic context of the ADR offering
• [02:06] Che Taewon on the timing and significance of the listing
• [05:14 – 09:14] Memory supply tightness, impact of AI, capacity expansions
• [10:50] Reflecting on SK’s acquisition of Hynix in 2012
• [14:03 – 14:55] Evolution from cycles to long-term agreements in memory industry
• [15:08] SK’s massive data center investment plans
• [17:21] Talent strategies and leveraging the ADR for recruitment
• [19:01 – 21:37] SK’s competitive strategy, one-team philosophy, stakeholder focus
• [22:09] Memory innovation: DRAM, NAND, and the “memory as a service” vision
• [26:16] AI cost evolution and future prospects
• [28:30] Che on the “AI bubble,” technology maturity, market realities
• [29:21] US investment plans and relationship with the US administration
• [30:31] Chinese market and global competition outlook

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Conclusion

This episode delivers a candid, forward-looking perspective from SK Group’s Che Taewon on record-breaking US fundraising, the surging AI-driven demand for advanced memory, industry strategy shifts, the importance of talent and global partnerships, and the company’s dual focus on tech infrastructure and stakeholder value. The conversations also reveal how SK intends to maintain competitiveness and relevance in the evolving landscape of global technology.

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Transcript

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Bloomberg Audio Studios Podcasts Radio News

[Bloomberg Host]

welcome to our Bloomberg Television and radio audiences all around the world. SK Hynix the biggest first time US share sale by a foreign company setting a record. And we are joined by SK Group Chairman Chetaewon. Congratulations.

[SK Group Chairman Che Taewon]

Oh, thank you, thank you.

[Bloomberg Host]

I think a sensible place to start is why now? You've been thinking about a US listing for some time but why put SK Hynix in front of US investors now?

[SK Group Chairman Che Taewon]

Well, we've been waiting for that for a long, long time and since I acquired that hynix about 15 years ago. So this is one of our milestones. Well, we have to go to access to the US capital market. So now dream comes true. So people asking why now? But well this is kind of oldest moment. We can, we can have the earliest moment possible.

[Bloomberg Host]

$26.5 billion is a lot of money but in the context of SK's commitment in domestically, in Korea and internationally, not so big. Can we expect multiple returns to ADRs, the sale of multiple rounds of ideas?

[SK Group Chairman Che Taewon]

Well yes, I'm expect, expect we can, we can deliver those things too. So try to expand that our ideal size and also better. That actually requires a better return. So once we have the better return then there is a more Demand so. So first thing is that we have to keep the stock price stable and well hopefully in a long run then well we can have that upside potentials and I see that the world this moment. So this is a era. So this era is actually spiked at a lot of demand for the memory. So this is a kind of time for us.

[Bloomberg Host]

Is this something near term? Did you with the leadership group and your CFO say we will need to do this with regularity or you haven't discussed that yet?

[SK Group Chairman Che Taewon]

Well, to tell you the truth, yeah, we've been discussing that one. But I cannot just say that in a detail yet.

[Bloomberg Host]

So I appreciate that. Chairman J. The US listing gives SK a new source of equity capital. But what about the broader US capital markets? Do we see SK Group SK Hynix as well become an issuer of global bonds? Global global debt.

[SK Group Chairman Che Taewon]

Well that's a possible but I guess right now well we have enough cash for that the SK Hynix some other company could do actually issuing that another the bond and more. Yeah access that the capital market Chairman Chai. Right.

[Bloomberg Host]

Bear with me. I'm going to get this out for our audience around the world. This is why we're all here, right? This you can't even see it. Tiny HBM for a high bandwidth memory. 12 layers in this case.

[SK Group Chairman Che Taewon]

Right.

[Bloomberg Host]

The whole world knows about this. How severe and how tight is the supply right now of HBM and more. More importantly, how long is that going to last? Do you have a sort of a year where you see the supply situation changing?

[SK Group Chairman Che Taewon]

Well, if you really understand the old requirement and the condition for the that HBM memories type and you have to understand that the side first so people know set the large language model. Yes, yes. But that larger language model as well very important things. But I guess in the future the more we're using that AI and AI

[Bloomberg Host]

actually requires more the inference phase.

[SK Group Chairman Che Taewon]

Yes but I see that memory the mean is a KB caching. So while it generated a lot of KB caching due to that while keeping that the performance of the LLM then you should have that the wall the large lump sum volume of the KB caching and you have to actually this is kind of a memory in people that is the same thing we store that the memory in our brain and yeah I need that those kind of KB caching that memory has to store somewhere. So if you had at the world better size up the memory then better performance. It's as simple as that. And that memory cycle is well. Is turning to well as a. It's A different. Different cycle. I shouldn't say that the cycle is different momentum. So. And back then the old days, the memory chip is. Memory chip demand is actually depends on the number of people number of the hardware set.

[Bloomberg Host]

That was a consumer electronics story in part.

[SK Group Chairman Che Taewon]

Yes.

[Bloomberg Host]

Boom and bust.

[SK Group Chairman Che Taewon]

Yeah, well, mostly. Well you add that to your own smartphone, but you don't need that. There were tens of different type of the smartphone. You only using that to just one like a PC.

[Bloomberg Host]

Right.

[SK Group Chairman Che Taewon]

So the demand is actually limited by that number of the people. But in a era it's different. You may use that you own a agent in a probably in a few years from.

[Vital Proteins Advertiser]

From.

[SK Group Chairman Che Taewon]

From now. Then you might have that there were tens over the hundreds difference of your own agent. So that every agent needed a lot of memories. Because at the world they created a lot of KV caching. So you have to actually store somewhere that actually needs that huge amount of the memory. Well, that's the. That's the AI the era. So I guess that memory business is turning to that. Well, it's a different stage.

[Bloomberg Host]

You still called it a cycle though. That's the demand side. A reason to do the ADRs is to raise capital in part to boost capacity. Your industry peers Micron had said very recently they have line of sight to supply improving 2028 the other side of 2027 in part because of the capacity that is coming online. What does SK Hynix see?

[SK Group Chairman Che Taewon]

Well, we didn't talk to that our customers. So where we just announced that a few months ago. So we're going to double up our capacity. Yes, within a five years. So that means that we've been doing that the business in more than 25 years. And then while with next five, five years we're going to double up our whole capacity as well. People see that the deaths are unrealistic and probably the oversupply and people worry about. But my customer said that that's not enough. We need that more. So double up there is not. It's not enough actually what they want us that will cordroping whether you are five times six times. So the more is the better. Because that while demand will be exponentially

[Bloomberg Host]

grow in the future based on that customer demand. What do they see then? If they are the crystal ball, the lens to the future. They believe that their level of demand will stay where it is. 2029, 2030. How long does supply tightness respond to that?

[SK Group Chairman Che Taewon]

Well, nobody expected. I don't know what's going to happen in next year. But I'm saying that Well I have some confidence and the demand will be grow and our supply capacity never want to catch up. So I don't know how long but I think it's going to be until that people our society human society has said there was some settlement with AGI then while I guess that the world that's a kind of a normalized at the older the cycles. But anyhow that until then while we we need that a lot of memories.

[Bloomberg Host]

You're with us live on Bloomberg Television and Bloomberg Radio Worldwide. And we're in conversation with SK Group Chairman Che Taiwan and we're talking about a record for SK Hynix in terms of US ADRs take me back to 2012 SK acquires Hynix at the time people questioned that decision. What what did they not see? What did they miss that you saw about the potential of that memory market.

[SK Group Chairman Che Taewon]

That's a kind of a bold decision. And I think that I made it really risky bet in a sense after the financially because the companies really suffer from that deep debt and also has to fighting with its own survival was at the well 15 years ago. That company is under control by the banks as simply as a chapter 11 and yes but in Korean sense what we we doing that the banks is a walkout program. So but they doing that more than 10 years in other walkout programs. That actually means that nobody really wants that well this portfolio because it's too risky. Reason why is. Well memory business is cyclical and that actually suffer from that uncontrollable cyclical business cycle. And it requires that every year multibillion dollar capex no matter. No matter how.

[Bloomberg Host]

Yeah.

[SK Group Chairman Che Taewon]

So even though you don't make the money but that business require that the machines and expand and adapting new technologies and buying that the new equipment and they have to spend that huge size up to the capex. That's why. And nobody really wants that those kind of danger business.

[Bloomberg Host]

You did.

[SK Group Chairman Che Taewon]

But yes I see a little bit different because that. Well if you see that there were a different angle this memory manufacturing is most sophisticated the manufacturing business business. So if you really do it then you can do anything crack the technology.

[Bloomberg Host]

The process.

[SK Group Chairman Che Taewon]

Yes. And also the whole process of that manufacturing as a it actually well once you make that little chips but chip inside that 380 billion transistor in it.

[Bloomberg Host]

Yes.

[SK Group Chairman Che Taewon]

So that's the business. So how are we going to create those kind of things? And it's a small. Yeah small size and the silicon things and we actually put it in the huge size of the transistors that's a state of art of the technology. So once you're doing that and I can manage anything and while I can actually challenge anything also in digital world to create lot of memory in the future.

[Bloomberg Host]

Right. So that you saw that.

[SK Group Chairman Che Taewon]

Yes, I just bet a bet on the dead and well people need that the memory. Yeah.

[Bloomberg Host]

You talked about managing the process and the idea that you know at that time in 2012 debt was a very big consideration in the market. It was boom and bust cyclical. How much is this? You've been asked about this a lot. But the idea of the long term agreement with customers changed that history.

[SK Group Chairman Che Taewon]

Right. But there is a supply shortage and every customer wants to have to secure that. The while they want supply the COVID up to their own demand. So they asking us that we need some kind of the long term contracts. It's not suggested by us. And while they actually require that them

[Bloomberg Host]

that's making the proposal not sk, not sk. So they are more willing.

[SK Group Chairman Che Taewon]

Well we also doing love to do it because that it's not cyclical business anymore. If we had it some long term agreement as well. Even though it's a downturn and we still maintain that our volumes and the certain level of the price. So that actually gives give us a different momentum. And that actually created another opportunity for we can change it our business model even.

[Bloomberg Host]

What about SK's commitments? Where are you going to prioritize your investment? You know, domestically versus here in America. Not just with the proceeds from from this US share sale but but generally

[SK Group Chairman Che Taewon]

with your balance sheet outside of the Hynix. And there were more most important matter is a data center business. So we announced that almost at the $1 trillion investment in the next 10 years. And to set up with data centers. My Target is about 15 gigawatt in Korea. I guess at the 5 gigawatt and outside of Korea. So I'm looking for that this whatever area including US side And I'm yeah. If there is a good chance and the problem is that the one main thing is a power. So power and the price of the electricity. That's a very important matter whether these data centers. But once we build that data centers and then well it can actually synergy between the memory chip and this infrastructure better. That's. That's what I'm doing in the future.

[Bloomberg Host]

We're live on Bloomberg Television and on Bloomberg Radio. And this is Bloomberg Tech in conversation with SK Group Chairman Che Taiwan.

[SK Group Chairman Che Taewon]

Thank you.

[Bloomberg Host]

Talked about the data center. The issues of the data center. This is an SK Group approach. Yes, so you're talking about SK Group looking more broadly at the stack, not just memory.

[SK Group Chairman Che Taewon]

Yes.

[Bloomberg Host]

Where else will you focus your attentions?

[SK Group Chairman Che Taewon]

Well, a company like SK Telecom and while they are doing that the Dale study on their resources on their own LLM also the applications and physical AI side.

[Bloomberg Host]

Yes. Robotics.

[Public.com Advertiser]

Yes.

[SK Group Chairman Che Taewon]

And the healthcare side. Well there is a. What? There's a bunch of opportunities and while we've been actually trying to pursuing that there were all those business opportunities in the future.

[Bloomberg Host]

An issue here in America and in Korea is talent. There is a deficit of skilled workers in the chip industry in America. And a company like Micron knows that there is a lot of talented people in Korea.

[SK Group Chairman Che Taewon]

Mm.

[Bloomberg Host]

How are you going to manage that? And again your investment plans for here in the usa.

[SK Group Chairman Che Taewon]

Well to secure that bring that more talent is ideal. Is one thing. One good one option. Yeah, options. And the idea give us all said there was some some kind of financial play options like even the stock option then while we could actually using that with the ADL directly. Right. So it actually attracted a lot of people, a lot of talent to the world to our group.

[Bloomberg Host]

See, the ADRs is also about public perception of SK.

[SK Group Chairman Che Taewon]

Right. That's. That's another thing. And the perception is matter. So. Well also. Well, we have to spend a huge money on a war the recruiting a lot of good talent. And I don't really care about the talent. It could be that the us, Japan. Well they could be anywhere, it's everywhere. So I try to recruiting that much more the talent and that's the kind of important things. And I'm asking that our CEOs to. Well, your job is to secure that talent in the future. Let's just set the doing and while we're going to. You're going to create a lot of jobs. And while we announced that more several trillion dollar investment plan for in the future. So we need a lot of talent. Right.

[Bloomberg Host]

Chairman Che, what is the biggest technological advantage that SK has built?

[Ray Porter]

Hmm.

[SK Group Chairman Che Taewon]

On the memory side.

[Bloomberg Host]

Memory side. Process design.

[SK Group Chairman Che Taewon]

I guess that. Well, you cannot just say just one thing.

[Bloomberg Host]

But what's the most important thing?

[SK Group Chairman Che Taewon]

Well, one team. So Hynix. Well I really focused on the. We could bring that to just one company, one team. So this is a simple business model and memory manufacturing. So well we can actually emphasize that we are just one team. And so I think that the one team made it with a really one big historical achievement now. So that's what I'm saying. And that's the most important matter. Yeah you can say that there was design capacities and process technology. This is Right.

[Bloomberg Host]

But that's all working with TSMC on the base die which the others do

[SK Group Chairman Che Taewon]

not do all the so well we don't actually compete with any customers.

[Bloomberg Host]

That's another do not compete with any customers. And you feel that's important?

[SK Group Chairman Che Taewon]

Yes, that's important and that actually gives us a lot of room to actually partnership in the future. So that's how we can actually maintain all those partnerships.

[Bloomberg Host]

Bigger picture can you catch up with Samsung?

[SK Group Chairman Che Taewon]

I don't want to answer those kind of questions so I don't. Well my main goal is that

[Kia Advertiser]

I

[SK Group Chairman Che Taewon]

have to make our stakeholder happy.

[Bloomberg Host]

Yes.

[SK Group Chairman Che Taewon]

Well in order to that there is a well certain part is a competition but I'm not really wanting to head up that's my main goal all those

[Bloomberg Host]

Chairman because the shareholders love the profit the customers want more capacity, more supply. Those seem to be competing ideals.

[SK Group Chairman Che Taewon]

That's what we call that the stakeholders so it's not only the shareholders so shareholder ones that are great returns here.

[Bank of America Representative]

Right.

[SK Group Chairman Che Taewon]

And the customer wants that the world cheap product and enough supply so but well I cannot just satisfy by every time every stakeholder but while we had at a certain balance so you know between that stakeholder and what I'm really see that well I also have to make that the my members and members of the company why they have to be the happy so happy company make the happy wizard. So that's a simple.

[Bloomberg Host]

I need to say Chairman Che the ADRs what stakeholder the US investor the ADR is indicated to open $177 per ADR. Of course the ideas were priced at 149. The memory market is also evolving so while supply is tight there's a. There's a very broad look at other technologies. I'm very interested about SK's Hynix's approach to NAND and flash memory and the role you see that technology playing going forward.

[SK Group Chairman Che Taewon]

Right. So it's a different type of the memory storage. So DRAM has their own functions but that's instant things and like what people you just remember the certain numbers and well if you just prepare that your exam then you had real good memory on those certain numbers and certain and target but you also need a lot of other memories and when you was young then you had some memories but well that memory needs that not just that in a brain you probably saw that somewhere but like well AI AI needed a lot of storage so DRAM has instant response and the instant the response the type of Memories and you should store there. But if you had at the more big size and we call that the cold data. So if there's a cold data then you could actually store in the. Yeah.

[Bloomberg Host]

And where is the innovation where. Sorry to interrupt you Chairman J. Where is the innovation on that other side?

[SK Group Chairman Che Taewon]

Oh, there's a lot of technologies and the problem is that in an end it actually. Well response is needed a lot of the time. That means latency. So in order to shorting that the latency. Well we need a lot of special technology on that. And well probably well what we call that the KB caching the key value caching. And while that the cache has to store some error. So that's a kind of the pyramid the hierarchy of the world the whole memory storage systems. And we need that all those evolution of the world those the memory things.

[Bloomberg Host]

And SK will invest into that technology.

[SK Group Chairman Che Taewon]

Of course that's our. The main business. And while we got going to make it and we could actually deliver some other business model even not just at the memory producer. So we could actually memory services like memory as a service in the future. That is one of the areas of what we could actually focus on talk

[Bloomberg Host]

a little bit more about memory as a service. The basics of how that would work.

[SK Group Chairman Che Taewon]

Well right now it's a kind of imaginary thing and idea. Yes just idea. So but I think that our whole AI trend the direction is goes there of course that the memory is a kind of real bottleneck and we have to solve it. And some of the specialists actually bring that there was certain type of solution to the each customers and the each application. So it's not just that the. Well one solution could actually cover that all those problems. It's not going to happen. But it's an influencing market and that influencing market has it that they own the characteristic that characteristic. And we we have to develop that a certain adjustment for that the stack up to the memories and how to do it. And we need that some special software together. But anyhow that well we could actually solve as a kind of services rather than adjusted. Here is memory and you just use it. But we just fix it all kinds of different memory the memory systems. So once we made it and we could actually deliver as a kind of service rather than just produce it just a commodity.

[Bloomberg Host]

It's an interesting look at the future. We are live on Bloomberg Television and radio speaking to SK Group Chairman Che in October. When you spoke to Bloomberg Sherry on you said everyone asked me about AI bubble air bubble air bubble. And you said at the time it's about the cost of AI. The cost of AI is too high.

[Bank of America Representative]

Yeah.

[Bloomberg Host]

Has that changed since October and what is the trajectory of the cost of AI?

[SK Group Chairman Che Taewon]

Yeah well cost of AI as well. You could actually say that the token

[Bloomberg Host]

for dollar Token per dollar or dollar per token basis. Yeah.

[SK Group Chairman Che Taewon]

Anyhow we have to lower down that the token cost.

[Bloomberg Host]

But do you see it coming down

[SK Group Chairman Che Taewon]

actually well within three years actually token cost is about 1/5 or the 1/10. So that's evolutions. And while there is a lot of players just contributed those kind of the token token cost is way down. So even my memory company make some solution for the how. How we can actually lower down that the token cost. That's our challenge. And while our direction is goes there so that's a kind of ecosystem for the AI. And while right now is cost is too high. But somehow that our technology you know down the road probably five or ten years. And while we actually digested all those problems and it could actually be that while everybody's AI and everybody could actually using that today on the Asian in the future. So that's. That's. That's the direction I see.

[Bloomberg Host]

But no AI bubble A bubble.

[SK Group Chairman Che Taewon]

And well when you see that the AI bubble and there's a real world and the stock market. Stock market always I see that there's some overshooting and well as a too hot, too cold. So there might be that the world There is a lot of bubble for that the stock price is up. But that just. That doesn't actually reflect it the whole real world. But the trend wise is a. Is a long long than two years three years down the road. And you could actually reflect that the old real world. That's what I see. Well you can say that bubble but I see that the world's stock market but these technology is real. So you use use it and well actually the problem is while these AI things right now is a little immature

[Bloomberg Host]

the imperfect yet it's the early stage.

[SK Group Chairman Che Taewon]

Of course it's the early stage is a kind of. I said it's only four years old baby. But when you become the college boy and something else and it has at the much more the mature. So it could actually help us at a lot of productivity. And we just rely on those things and this is kind of race and right now we see that there's some

[Bloomberg Host]

a trial Chairman Che It's a historic day. Literally making history with the ideas. But the focus on America SK's relationship with America. What is your relationship like with the Trump administration and how Are you working with them to bring more of SK Hynix to to this country?

[SK Group Chairman Che Taewon]

Well, not on just SK Hynix and that we've been already asking already investing at the more than $35 billion in US side and not many people notice those things but we do have bio business, we do have the battery business and Hynix just announced that the new fab in the Indiana side and also SK Telecom made it a lot of investment in the air startups so. So we already invested in 35 but I see that well my plan is that a much bigger number so bigger than 35. Much, much, much bigger than 35. So I'm planning to and this is one milestone and we access the US capital market and we have a lot of options and also we have that responsibility to keeping that share just share price and well there's one good thing is that we made it the right investment and so we keep that at our own value.

[Bloomberg Host]

China it's an important market China driver of AI.

[SK Group Chairman Che Taewon]

Yeah, China AI as well. We have to actually notice that the China approaches are way different than than the US side How so? They have a lot of disorientation on side but anyhow that they put it in a lot of other resources. The number one is that the human

[Bloomberg Host]

force so human capital.

[SK Group Chairman Che Taewon]

Yeah, human capital and the number of people number of engineers. So annually while they had that STEM the student from the major in the STEM and it's more than the million students has come out and every year so they're looking for the jobs and mostly they apply to the tech area. When you say tech area is probably 50% is AI side so their AI as well as. Yeah they using that the different strategies. So I don't see that there were any kind of the visible result yet. But there is some signs and they making that some the cheaper way and they try to create that cheaper token. The token cost compatibility. Yes that's a kind of important matter and the US for focused on top niche market and while the quality of tokens but China is focused on other ways so I don't know the result but. Well, I see that what if they're using a different strategy?

[Bloomberg Host]

SK Group Chairman Che taehyun thank you. Congratulations.

[SK Group Chairman Che Taewon]

Thank you.

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[Kal Penn]

Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors, LLC. SEC registered advisor complete disclosures [e-mail] disclosures hey everyone, it's Kal Penn. I'm the host of Earsay, the Audible and iHeart Audiobook Club. This week on the podcast, I am sitting down with Ray Porter, the narrator of Andy Weir's audiobook project, Hail Mary, Massive sci fi adventure about survival and science and what happens when you wake up alone, very far from Earth.

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I really had to make a decision because I caught myself getting that frog in my throat and starting to get teary as I'm narrating some of these sections. And it's like, okay, yo, yo, yo, is this indulgent? And I really thought about it. I was like, no. At this point it would kind of be betraying the trust the author and the listener have in telling this story if I don't go through it. But there's places in this book that deeply, emotionally affected me and I left it on the mic. That's great because it served the story. People will say like, oh my God, I cried at the end. It's like, yeah dude, me too.

[Kal Penn]

Listen to Earsay, the Audible and iHeart Audiobook Club on the iHeartradio app or wherever you get your podcasts.

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