SEOUL, July 19, 2026, 03:07 KST
- South Korean shares declined 15.5% between July 10 and Thursday.
- U.S. ADRs dropped 8.3% to finish Friday at $154.03.
- Both markets remain closed. Trading in Seoul will restart on Monday, July 20.
SK hynix’s U.S. receipts finished 24% higher than its Seoul-listed shares ahead of Monday’s market reopen in South Korea. Both U.S. and Korean markets are currently closed.
The difference is significant. Each security confers an identical economic right. One ordinary share is equivalent to ten ADRs.
Seoul shares have declined by 15.5% since the close of the U.S. debut on July 10. ADRs dropped 8.3% in the same period, resulting in a performance gap of 7.2 percentage points.
The split has altered valuation options. On Friday, forward multiples showed the ADR trading just 3.1% under Micron Technology Inc. NASDAQ:MU, while shares in Seoul indicated a 21.8% discount.
| Security | Latest close | Forward P/E | P/E discount to Micron |
|---|---|---|---|
| SK hynix Seoul share | ₩1,842,000, July 16 | 4.60x | 21.8% |
| SK hynix U.S. ADR | $154.03, July 17 | 5.71x | 3.1% |
| Micron Technology Inc. NASDAQ:MU | $848.95, July 17 | 5.89x | — |
*Initial estimate. The 4.60-times value is calculated by dividing the ADR multiple by the stated 24% premium. Discounts are based on Micron’s 5.89-times forward multiple.
The pricing difference is challenging to exploit. Investors can convert ADRs to local shares, but issuing new ADRs from Seoul equities is still limited.
The one-way bottleneck restricts U.S. supply, maintaining a premium even as Seoul-listed shares may look less expensive.
Seoul markets saw choppy trading ahead of Friday’s holiday. SK hynix shares slumped 15.4% on Monday, then advanced over the next two sessions. On Thursday, the stock slid 11.5% to close at 1.842 million won.
The Korea Exchange was shut on Friday in observance of Constitution Day, while the Nasdaq remained open.
The ADR ended Friday up 1.1% at $154.03. Trading volume totaled 73.98 million receipts, around 8.5 times its usual average.
Regulators could influence Monday’s market moves. South Korea announced a ban on new single-stock leveraged ETF listings. The minimum deposit will increase to 30 million won from 10 million on August 5.
Inki Cho, senior strategist at Exness, described the announcement as “a near-term risk.” Cho added that exits may heighten volatility ahead of the new rules coming into force. Reuters
Chey Tae-won, SK Group chairman, expressed optimism about memory demand. “Memory chips will continue to be needed, so their value will trend upward over time,” he said on Friday. The remark did not represent official company guidance. The Korea Times
Monday will test price discovery, as Seoul reacts to Friday’s U.S. action and regulatory ETF restrictions. A rise in local markets would help close the seven-point performance gap.
There are no quarterly reports expected next week. SK hynix is set to announce its second-quarter results on July 29 at 9 a.m. KST.
Risks: A larger chip sector decline or mandatory ETF departures may weigh on both listings. Increased ADR issuance could also narrow the U.S. premium.
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