SK hynix faces regulatory hurdles over its plan to list its U.S. subsidiary, Solidigm. The heads of South Korea’s Financial Supervisory Service (FSS) and Financial Services Commission (FSC) have both said the proposal is subject to dual-listing regulations, potentially halting the process. The scrutiny has raised concerns about regulatory penalties and drawn political attention, with lawmakers urging SK hynix’s board to reconsider the move.
SK hynix shares fell 5.49% in Thursday’s trading session. Investors are concerned that issuing new shares for Solidigm could dilute existing shareholders’ rights and divert profits. SK hynix formed Solidigm after acquiring Intel’s NAND business for $9 billion.