Korean retail investors purchased 502.13 million USD (approximately 734.6 billion KRW) in SK Hynix American Depositary Receipts (ADR) during the one-week period from July 17 to July 24, according to Korea Securities Depository on July 26. The buying spree in SK Hynix Stocks reflects expectations for growth in artificial intelligence semiconductor markets, though the ADR closed at 154.57 USD on July 24 (local time) — equivalent to 2.261513 million KRW per share when converted using the 10-to-1 exchange ratio — representing a 28.5% premium over the domestic stock's closing price of 1.759 million KRW on the same date. SK Hynix listed its ADR on Nasdaq on July 10 at an IPO price of 149 USD, with cumulative net purchases by Korean investors reaching 675.54 million USD since the listing.
Korean Retail Investors Purchase 734.6 Billion KRW in SK Hynix ADR
SK Hynix ADR ranked as the most net-purchased US stock by Korean retail investors during the July 17-24 period, with total purchases of 502.13 million USD (approximately 734.6 billion KRW). Cumulative net purchases since the July 10 Nasdaq listing reached 675.54 million USD. The ADR opened at the IPO price of 149 USD on the listing day and closed at 154.57 USD on July 24 (local time).
When converted to Korean won using the ADR-to-ordinary share exchange ratio of 10-to-1, the July 24 closing price translates to 2.261513 million KRW per ordinary share. This represents a 28.5% premium compared to the domestic stock's closing price of 1.759 million KRW on the KOSPI market on the same date. On July 14, the ADR surged 27.29% to close at 193.92 USD, widening the price gap with domestic shares to approximately 51%.
Market observers attribute the concentrated buying to strong US investor preference for AI and semiconductor stocks, combined with limited ADR trading volume in the initial listing period. The domestic SK Hynix stock declined 33.6% during the month, while Korean investors continued purchasing the ADR on the US market.
Domestic Active ETFs Expand SK Hynix ADR Holdings to 12 Funds
Twelve domestic active exchange-traded funds included SK Hynix ADR in their portfolios as of July 24, according to ETF Check. Asset management firms holding the ADR include Asset Plus (2 funds), Samsung Active (4 funds), Timefolio (4 funds), and Mirae Asset (2 funds).
Asset Plus Global Leading Company Focus 10 Active ETF allocated the highest weighting at 5.4%. TIGER US Tech NYSE 100 Active held 4.81%, followed by Asset Plus Global Master Active at 4.79%.
Shinhan Investment Analyst Advises Monitoring Supply-Demand Changes
Lee Jeong-bin, analyst at Shinhan Investment & Securities, stated that the current SK Hynix ADR premium reflects both US market accessibility and initial listing supply-demand distortions. Lee advised that while the premium may not disappear immediately in the short term, investors need to monitor future supply-demand changes.
FAQ
How much did Korean retail investors purchase in SK Hynix ADR from July 17 to July 24?
Korean retail investors purchased 502.13 million USD (approximately 734.6 billion KRW) in SK Hynix ADR during the one-week period from July 17 to July 24, according to Korea Securities Depository on July 26.
What is the price difference between SK Hynix ADR and the domestic stock?
SK Hynix ADR closed at 154.57 USD on July 24 (local time), equivalent to 2.261513 million KRW per share when converted using the 10-to-1 exchange ratio. This represents a 28.5% premium over the domestic stock's closing price of 1.759 million KRW on the KOSPI market on the same date.
How many domestic active ETFs hold SK Hynix ADR?
Twelve domestic active ETFs included SK Hynix ADR in their portfolios as of July 24, according to ETF Check. Asset Plus Global Leading Company Focus 10 Active ETF allocated the highest weighting at 5.4%.
