SK Hynix ADR Can Now Be Converted to KRW Common Stock Starting Today

BlockBeats News, July 29th, SK Hynix has initiated the mechanism for the conversion between its U.S. American Depositary Receipt (ADR) listed on the Nasdaq (ticker: SKHY) and its domestic shares in South Korea. Starting today, investors can convert their ADRs to KRW-denominated shares or perform the reverse operation (subject to certain regulatory restrictions), providing global investors with more flexibility for cross-border trading.

This move follows SK Hynix's completion of a $26.5 billion ADR issuance and listing in early July, further enhancing the global liquidity of its stock. Each ADR represents one-tenth of a South Korean share, and currently, there is still a premium trading on the U.S. side.

It is important to note that the actual conversion cannot be completed on the same day and requires processes such as with the depositary bank (Citi), foreign exchange declarations, administrative procedures, etc., usually taking a few business days. The application is mainly submitted through brokers to the KSD/depositary bank, but the transaction execution and arbitrage effects will be influenced by the trading hours of the Korean and U.S. markets (Korean market trading during the day, U.S. market at night).