South Korea’s won rose for a second day on July 4 after reports that SK Hynix may hedge flows tied to its roughly US$29.4 billion American depositary receipt (ADR) issuance and convert part of the proceeds into won for domestic investment.

The currency gained 0.6% on July 3 and July 4 to 1,530.66 won per US dollar, its strongest level since June 19, though it is still down nearly 6% this year.

The ADRs are expected to settle on July 14.

SK Hynix said it was considering multiple options without confirming details.

iM Securities economist Park Sang-hyun said the amount converted would depend on the company, and noted that about US$29 billion is roughly equal to one month’s net foreign selling of South Korean stocks.

Any large conversion could still affect local markets.

SK Hynix has separately outlined a 1,100 trillion won (US$715 billion) long-term investment plan across Yongin, Cheongju, and South Korea’s southwestern region.

🔗 Source: Cailianshe