SK Hynix ADR Listing Drives FX Swap Points to 4-Year High on July 27

According to Yonhapinfomax, South Korea's FX swap market surged today (July 27) as SK Hynix's substantial dollar inflow from its American Depositary Receipt listing triggered a rush to convert dollars into won. The one-month swap point contract rose to 0.05 won, marking the first time it entered positive territory since June 2, 2022—a gap of 4 years and 2 months. The one-week contract climbed to 0.25 won, its highest level in approximately 3 years and 7 months.

SK Hynix raised approximately $26.5 billion through the ADR listing, with funds beginning to arrive from July 14. Rather than converting all proceeds immediately, the company has kept portions in dollar form and distributed deposits across banks, flooding the short-term dollar liquidity market. As banks sought to exchange these dollars for won via FX swaps, sell-and-buy demand intensified, driving up swap points on the short-end curve.