Hanmi Semiconductor: 20x Returns in Just 3 Years — Why Long-Term Investing Wins

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 February 17, 2023.

At my father’s request, I purchased six shares of Hanmi Semiconductor.

Purchase price: 15,030 KRW
Current price (as of February 28, 2026): 316,000 KRW

That is more than a 20-fold increase.

On paper, this looks extraordinary. But this is not a story about a great investment decision. It is a story about structure — specifically, the structure of capital behind an investment.


Conceptual illustration of long-term investing showing a stock chart rising 20x with a subtle contrast between borrowed money risk and surplus capital stability.

1. It Was Never Just About Six Shares

At the time, this was not the only stock in my portfolio. I held multiple positions — some profitable, some disastrous.

Over the years, I have experienced:

  • 100% gains

  • 1,000% gains

  • Even returns approaching 3,000%

  • And approximately five delistings

From a purely mathematical perspective, investing may seem asymmetric.

Maximum loss: -100%
Maximum gain: theoretically unlimited

At first glance, that appears favorable. But real-world investing is not a simple payoff diagram. The structure of the capital matters more than the theoretical upside.

2. The Critical Detail: It Was Borrowed Money

Those six shares were not purchased with surplus capital.

My father had borrowed the money.

This single fact changes everything.

Investment decisions cannot be evaluated in isolation from the nature of the capital used. We must ask:

  • Can this money remain invested indefinitely?

  • Does it need to be withdrawn soon?

  • Would a decline in the account affect daily life?

My father and I eventually had an argument, and I stopped managing the investments on his behalf. However, even without that conflict, it is highly likely that he would have withdrawn the funds midway.

Why?

Because the money was borrowed.

Borrowed money has a clock attached to it.

3. Investing With Money That Cannot Stay

I have had many similar experiences.

There were periods when I invested not with surplus capital, but with money temporarily diverted from living expenses.

This money was never meant to remain in the brokerage account long term. It was money that would soon have to return to a regular bank account.

Under this structure, something changes psychologically.

  • Gains create the urge to increase position size.

  • Losses create urgency to recover quickly.

  • Small fluctuations feel amplified.

  • Account checks become frequent.

  • Decision-making becomes reactive.

When capital must be preserved — such as rent deposits or essential living funds — the account balance becomes a source of pressure rather than opportunity.

That pressure distorts judgment.

4. “In and Out” Sounds Easier Than It Is

Some investors are skilled at short-term trading. They enter and exit efficiently. They manage volatility with discipline.

I was not one of them.

  • I failed to sell at peaks.

  • I failed to buy at true bottoms.

  • I reacted to headlines.

  • I chased momentum.

  • I hesitated during sharp declines.

Investing, more than anything, is a psychological exercise.

And the single strongest destabilizing factor is using capital that cannot remain invested.

The closer the required withdrawal date, the weaker the decision-making becomes.

Patience requires time. Time requires capital that can stay.

5. The Uncomfortable Truth About a 20x Return

Looking back at Hanmi Semiconductor’s move from 15,030 KRW to 316,000 KRW, one might think:

  • I should have bought more.

  • Why only six shares?

  • This could have changed everything.

But that interpretation ignores structure.

  • The capital was borrowed.

  • The holding period was uncertain.

  • The investment was not designed for long-term compounding.

  • Emotional stability was not present.

In other words, the 20-fold return was not the result of a structurally sound, patient long-term strategy.

It was a favorable outcome within a fragile structure.

Investment results must be evaluated in context. Structure determines sustainability.

6. Why Long-Term Investing Requires Surplus Capital

Long-term investing is not merely about holding assets for years. It is about constructing an environment in which holding is possible.

That requires three conditions:

1) No Withdrawal Pressure

If funds are needed on a schedule, the investment is not truly long term.

2) No Impact on Daily Stability

If portfolio volatility affects housing, bills, or financial security, rational thinking becomes compromised.

3) Ability to Endure Down Cycles

Markets do not rise in straight lines. Multi-year stagnation and severe drawdowns are normal.

Only capital that can endure those periods qualifies for long-term investment.

7. “Loss Is Capped, Gain Is Unlimited” — In Theory

Theoretically, yes.

But in practice, several real-world variables intervene:

  • Leverage

  • Margin calls

  • Borrowed funds

  • Forced liquidation

  • Emotional stress

  • Timing constraints

When these factors enter the equation, the limiting factor is not upside potential.

It is survivability.

If you cannot remain in the position long enough, theoretical upside becomes irrelevant.

8. Lessons From Delistings

Having experienced multiple delistings, I learned that loss is not just a percentage figure.

It includes:

  • Time lost

  • Opportunity cost

  • Emotional fatigue

  • Reduced future risk tolerance

The most important realization was this:

The capital structure had been wrong.

Whenever I used money that could not tolerate extended risk, the margin for error disappeared.

9. What Remains

After all the volatility, gains, losses, and rare multi-bagger outcomes, one sentence remains:

Invest for the long term with surplus capital.

It sounds simple. Almost too simple.

But it is structurally profound.

  • Do not invest with borrowed money.

  • Do not divert essential living funds.

  • Do not risk capital that must be preserved.

  • Design the structure before chasing returns.

When the capital structure is stable, patience becomes possible.
When patience becomes possible, compounding can function.

10. What Truly Matters

In investing, three questions matter:

  1. How much did you gain?

  2. How much did you lose?

  3. Could you endure the process?

The third question determines everything.

Unsustainable structures eventually collapse, regardless of temporary performance.

Closing Reflection

On February 17, 2023, I purchased six shares of Hanmi Semiconductor at my father’s request.

On February 28, 2026, those shares were worth more than twenty times the purchase price.

But the true lesson was not about a 20x return.

It was about capital structure.

Investing is a long conversation with time.
Time favors those who can remain.

And remaining requires one thing above all:

Surplus capital.


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