SK Hynix ADR Conversion Limit Clarified as 2.5%, Not 25%, on July 22

According to Lee Yun-soo, president of Korea Securities Depository (KSD), on July 22, SK Hynix's ADR conversion limit is 2.5%, not the rumored 25%. Lee clarified that the higher figure represents a fee estimate submitted to the U.S. Securities and Exchange Commission, not the actual conversion cap. The conversion limit can only be expanded by SK Hynix itself, not by infrastructure operators or custodian banks like Citibank.

Lee noted that despite potential share registration, actual ADR conversion remains unlikely in the near term due to the significant price premium on ADRs and the current cap. With a price gap of approximately 30% between domestic shares and ADRs, there is insufficient incentive for conversion, he said.