South Korea Moves to Relax Holding-Company Funding Rules to Back SK Hynix AI Chip Expansion

South Korea's ruling party is pushing legislation to loosen holding-company capital-raising rules, aiming to open the door to more outside funding for SK Hynix as AI-driven semiconductor demand accelerates. Under the country's chaebol structure—family-controlled conglomerates that dominate large parts of the economy—holding-company regulations have traditionally limited how subsidiaries can tap external investors. The constraints have often made it harder to finance capital-heavy projects such as semiconductor fabrication plants. The proposed change would ease those restrictions for the chip industry, allowing SK Hynix to attract external capital for new factories and advanced packaging facilities without breaching ownership and control rules that have historically kept outside investors at arm's length. The push comes as SK Hynix steps up global fundraising and investment. The company raised $26.5 billion in its Nasdaq ADR debut on July 10, 2026, the largest first-time share sale by a foreign issuer in the US. Seoul's policy shift also ties into a broader national semiconductor initiative estimated at about 800 trillion won (roughly $518 billion), with SK Hynix and Samsung Electronics positioned as core participants. The strategy is centered on protecting leadership in memory and advanced packaging, including high-bandwidth memory (HBM) chips that have become critical components for AI data centers. The legislative overhaul is intended to ensure SK Hynix can secure the capital required to deliver on that role.