SK Hynix ADR 265Dollar inflows send the won-dollar exchange rate tumbling

SK Hynix raised 265billion dollars through a U.S. depositary receipt (ADR) issue, and as a result, the won-dollar exchange rate fell on 7month 12day. This had an immediate impact on investors in terms of the scale of inflows into the foreign-exchange market.

After successfully listing on Nasdaq in the United States, SK Hynix secured dollar funding through this ADR. The company is sequentially bringing the dollars it raised into the country and converting them into won.

In the foreign-exchange market, this large-scale dollar inflow directly affected exchange rates. In particular, the amount raised, 265billion dollars, is at a level that exceeds the size at the time of the 2020year Korea-U.S. currency swap.

Market participants are viewing this inflow of funds as a change in foreign-exchange market liquidity. As it is reflected in trading volume and bid-ask quotes, a short-term narrowing in exchange-rate volatility was observed.

The issuance of ADRs by SK Hynix and the remittance of funds are matters confirmed through official disclosures and transaction reports. How the currency exchange proceeds afterward is being compiled sequentially in foreign-exchange market data.

For now, the company’s ADR issuance size and the domestic circulation route remain the key information. As additional disclosures or foreign-exchange market trends emerge, the related figures are expected to be updated.