SK Hynix is directing part of its rapidly growing cash reserves into South Korea's bond market as the artificial-intelligence semiconductor boom drives record performance. The company held 88 trillion Korean won in cash assets at the end of June, up 33.6 trillion won in three months, and the bond industry estimates it has bought about 20 trillion won of corporate, financial and public bonds since the start of the year. Its purchases have helped fill a funding gap after defaults and corporate rehabilitation proceedings chilled demand for lower-rated debt, but the company has focused mainly on bonds rated AA- or higher. SK Hynix is also expanding its treasury operation, recruiting experienced fund-management professionals and increasing specific money trusts (mandated asset-management products) to 55.5021 trillion won at the end of June. Its portfolio has grown from sub-one-year bonds to two- and three-year public bonds, credit-finance company bonds and corporate bonds, including 1.26 trillion won of two-year commercial paper (short-term corporate debt) issued by Mirae Asset Securities. The company recently sought proposals from six asset managers for investments totaling 3 trillion won. The concentration of market demand in one buyer has raised concerns that SK Hynix's withdrawal could push interest rates higher. After it canceled a planned bond purchase on the 10th of the previous month, rates rose, and Korea Electric Power Corporation's subsequent bond issuance priced about 0.08 percentage points above the average private-market valuation rate. The non-investment-grade bond market remains weak: 10 companies rated BBB or lower held 14 demand forecasts this year, leaving 103 billion won, or 20.8% of the targeted 495 billion won, unsold. SK Hynix also resolved on the 19th of the previous month to repurchase and cancel 40 trillion won of its own shares, with the deadline set for November 19.