SK hynix Inc., the world's second-largest memory chipmaker, has decided to give up its bid to buy Elpida Memory Inc., the head of the company's parent business group said Friday.

SK Group Chairman Chey Tae-won said in a directors meeting that close analysis of overall conditions revealed that it is not advantageous for SK hynix to buy the Japanese chipmaker at present.

"When a decision has to be made on buying a company, one must check to see if a deal is worth the effort," the head of South Korea's third-largest family-owned conglomerate said.

He, however, said that if there are other good mergers and acquisition prospects, SK will consider them.

Related to Chey's decision, sources said there has been considerable debate within the business group in regard to the practicality of buying Elpida in the face of sluggish global semiconductor prices. There have also been concerns raised about the need to borrow money to take over the struggling chipmaker, which can increase SK's overall financial burden.

SK hynix announced in late March that it submitted a letter of intent (LOI) to bid for Elpida, which filed for bankruptcy protection on Feb. 27.

The LOI was made after SK Group took over Hynix Semiconductor Inc. for 3.37 trillion won ($2.97 billion) in mid February. (Yonhap)