SK Hynix to Repatriate ADR Funds to South Korea by Mid-July

South Korean chipmaker SK Hynix is expected to bring U.S. dollars into the country by approximately July 15, converting a portion of the funds raised from its offering of American depositary receipts (ADRs). This move comes as the company capitalizes on the global artificial intelligence boom.

SK Hynix launched a significant U.S. share sale on Monday, aiming to raise 43 trillion won (approximately $28.07 billion). This offering is noted as one of the largest new share sales globally. The company has stated that at least part of the proceeds will be allocated to constructing two new factories in South Korea and acquiring essential chipmaking equipment.

The influx of U.S. dollars is anticipated to provide some support to the South Korean won, which is currently trading near a 17-year low against the dollar. According to a source familiar with the matter, the relevant funds are scheduled for deposit around July 15, potentially leading to spot market transactions at that time.

While only a small portion of the funds is expected to be deposited directly, the remainder is likely to enter the market through foreign exchange forward and spot transactions throughout July and August. SK Hynix has not yet responded to requests for comment.