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Korea Finance Corp Sells SK Hynix Stakes for 460 Billion Won
Stock Sell-off
Korea Finance Corp Sells SK Hynix Stakes for 460 Billion Won
  • By matthew
  • October 11, 2013, 06:20
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The Korea Finance Corporation (KoFC) sold off its stake in SK Hynix in the over-the-counter market. 

According to a financial industry source on October 7, the public bank, which specializes in policy and development financing, has raised 460 billion won (US$429 million) by disposing of its 1.96% stake (13.89 million shares) of SK Hynix just after the closing of the market on the same day. 

The bank had a 5.5-percent stake (32.41 million shares) in the second largest semiconductor manufacturer in 2009, which were given by its parent Korea Development Bank. Its stake shrank to 3.57 percent in February last year, when the SK Group took over Hynix. Since May this year, the bank has cut its shareholding in SK Hynix by selling off a 1% stake at 31,696 won (US$29.57) per share.

Industry sources said it was a move by the KFC to make a profit, as the share price of SK Hynix hit a 30-month high thanks to a rise in DRAM prices. On October 7, SK Hynix shares closed at 32,900 won (US$30.74), up 1.39 percent from the previous day, which was the highest price since April 22 in 2011.