SK Hynix Sells USD From $26.5B ADR Listing, Impacts Korean Won Exchange Rate

SK Hynix is continuously selling US dollars raised through its American Depositary Receipt (ADR) listing, according to Seoul's foreign exchange market on the 16th. The company raised $26.5 billion (approximately 40 trillion won) via the ADR listing and is sequentially converting the funds, which are primarily intended for domestic investment. On the 16th, SK Hynix continued releasing dollar sell orders throughout the trading session, following a pattern of selling mainly during morning hours on the 14th and in the afternoon on the previous day, demonstrating a time-varied approach to currency conversion.

SK Hynix Raised $26.5 Billion Through ADR Listing

SK Hynix secured $26.5 billion (approximately 40 trillion won) through its ADR listing. The company plans to utilize these funds primarily for domestic investment purposes. Given the substantial size of the secured funds, the currency conversion process is proceeding sequentially over an extended period. Some market observers anticipate that the selling will continue at least until the end of next month.

Dollar Selling Pattern Impacts USD/KRW Exchange Rate

The USD/KRW exchange rate reached a high of 1,488.80 won during morning trading on the 16th before reversing direction and sliding to 1,481.30 won. This movement appears to be influenced by concentrated selling from SK Hynix. The company has been varying its selling times across different trading sessions - primarily morning hours on the 14th and afternoon hours on the previous day - as it continues the currency conversion process.

Import Payment Demand Supports 1,480 Won Level

While the USD/KRW rate faces downward pressure from SK Hynix's large-scale dollar selling, the support level around 1,480 won remains relatively solid. Import company payment demand has been flowing in, putting brakes on the downward trend. Custodian buying following foreign investor stock sales has also supported the lower bound. According to a bank's foreign exchange dealer, "There's been a lot of payment volume recently. It appears that orders that were waiting have emerged as the level dropped."