SK Group chair sees semiconductor rebound in 6 mths to 1 yr

The semiconductor industry may be at the bottom of its cycle and is likely to turn around in six months to one year, in tandem with an expected economic rebound, SK Group Chairman Chey Tae-won said on Thursday.

The chairman of SK Hynix Inc.'s parent group noted the South Korean economy is still struggling with the fallout from COVID-19 and the US-China standoff, but it appears that the worst has passed.

“It is getting late for the economy to shift to the upside, but it’s not exactly bogging down,” he said at a press conference on the sidelines of a business forum hosted by the Korea Chamber of Commerce and Industry on Jeju Island.

As the chair of the business lobby group, he said the domestic economy would likely stage a turnaround later this year or next year.

But he warned of the shorter cycle of the ups and downs in the chip industry, as well as their increased amplitude.

“The (semiconductor) market is being exposed to wilder swings. … It’s difficult to do something constantly for our mainstay business,” he added, referring to the semiconductor business.

Last week, Samsung Electronics Co. said it expects to see light at the end of the tunnel with a likely turnaround of its chip business in the second half. It posted its worst overall operating profit in 14 years in the second quarter.

PROTECTIONISM

Chey noted the importance of joint efforts by the government and companies to build global competitiveness in the face of growing trade protectionism.

“Now governments intervene in the market and have a say in a company's competitiveness,” he told reporters.

“We cannot fight alone anymore on the battleground outside of our country.”

He advised domestic companies to expand their horizons into the Middle East, South America, Africa and island countries of the Asia-Pacific region, while stepping up efforts to strengthen their presence in China, South Korea’s biggest export market.

Write to Jeong-Soo Hwang at hjs@hankyung.com

Yeonhee Kim edited this article.