SK Hynix Stock Plunges to 1.77M Won as ADR Trades at $150, Widening Price Gap to 27% on July 14

According to Korea Economic TV, SK Hynix stock plummeted to 1.77 million won on July 14 while its newly listed Nasdaq ADR traded at $150, widening the discrepancy between the U.S. and Korean prices to 27.12%. The ADR, which debuted on July 10 at $149, surged to $168.01 before falling sharply as hedge funds executed arbitrage trades, buying in the U.S. market while short-selling in Seoul to lock in the premium.

Market analysts expect July 15 to be the critical turning point. Forced liquidations stemming from margin calls—triggered by yesterday's record 15.37% drop—are set to be executed at market open on July 15 through simultaneous auction trading, as Korea's T+2 settlement system allows a one-day grace period after collateral ratios breach the 140% threshold. Experts note a true market recovery will only begin once the ADR-to-stock price gap narrows below 20% and hedge funds initiate short covering.