SK Hynix ADR and Korean Shares Open for Mutual Conversion on July 29, But Arbitrage Seen Difficult

According to South Korea's Korea Securities Depository (KSD), SK Hynix ADR and Korean-listed ordinary shares will enable mutual conversion on July 29, following the scheduled listing of new ordinary shares. However, retail investors are unlikely to execute arbitrage strategies as expected.

Converting ordinary shares to ADR is limited by the issuer's designated ADR issuance quota, while converting ADR back to ordinary shares has no such restriction. Conversion requires separate broker applications and involves foreign exchange procedures, with processes varying across securities firms. Investors cannot execute conversions instantly through mobile or online trading systems like regular stock trades.