SK Hynix plans to transfer dollars raised from its American depositary receipt (ADR) offering into South Korea by around July 15, converting a portion of the proceeds into Korean won, a person familiar with the matter told Reuters, according to the report.
The funds are scheduled to be deposited on the 15th, which could prompt spot market activity close to that date. Sources told Reuters that only a modest slice of the total sum will be deposited initially on the 15th.
The remainder of the dollars is expected to be introduced into South Korea through a mix of foreign exchange forward contracts and spot transactions across July and August, rather than all arriving as a single lump sum.
SK Hynix began a U.S. share sale on Monday that aims to raise 43 trillion won - roughly $28.07 billion - one of the largest new share offerings globally. The offering is framed as a move to capitalise on the global AI-driven demand surge for semiconductors.
Because the ADRs are denominated in U.S. dollars, SK Hynix has said some of the proceeds will be allocated to building two new fabrication plants in South Korea and to purchasing chipmaking equipment. The repatriation and conversion of dollars into won could offer some support to the South Korean currency, which is trading near a 17-year low versus the dollar.
The report indicates a staged approach to currency flows: a small initial deposit around mid-July followed by further conversions and transactions during the summer months. Market participants watching currency liquidity and the semiconductor capital expenditure cycle may find this timing and structure relevant for near-term FX and equipment-order dynamics.
Details about exact amounts to be converted on specific dates beyond the initial deposit around July 15 were not provided in the report. The company has linked at least part of the USD-denominated proceeds to domestic factory construction and equipment purchases.
Summary
SK Hynix will channel part of its ADR proceeds back to South Korea by about July 15, with only a small initial deposit expected on that date and the remainder entering markets via forward and spot FX transactions during July and August. Proceeds are slated to help finance two new domestic fabs and chipmaking equipment purchases.