SEOUL, July 23, 2026, 23:11 (KST)
SK hynix shares finished 4.86% higher in Seoul at 1.919 million won. Its ADRs listed on Nasdaq rose 6.0% to $175.15 in early U.S. trading. The Seoul market had closed, but U.S. regular trading was still underway.
The cross-listing gap was more significant for investors. With the exchange rate at 1,473.52 won per dollar, the ADR showed a calculated premium of 34.5%. Each U.S. depositary receipt corresponds to one-tenth of a common share traded in Seoul.
This set parity at $130.23 per ADR. A complete reset would reduce the U.S. price by 25.6%. The calculation is based on Seoul shares and exchange rates remaining constant.
The following comparison is based on recent U.S. equity and currency quotations.
| July 23 measure | Seoul line | Nasdaq line |
|---|---|---|
| Quoted price | ₩1,919,000 close | $175.15 as of 9:56 a.m. EDT |
| Value per ADR, in dollars | $130.23 | $175.15 |
| Thursday move | up 4.86% | up 6.0% |
| Premium to underlying | Not applicable | up 34.5% |
Current conversion regulations prevent unrestricted arbitrage of the gap. The allowable conversion pool is capped at 2.5% of total shares outstanding. The July issuance met that limit, significantly restricting fresh ADR issuance.
The $26.5 billion offering attracted demand exceeding supply by over seven times. The deal marked the first opportunity for U.S. long-only funds to invest directly in the chipmaker.
In the past five trading days in Seoul, domestic shares advanced 4.2%. The ADR increased roughly 15.0% since the close on July 16. This created a performance gap of almost 11 percentage points.
Additional fundamentals provided a boost on Thursday. Alphabet Inc. NASDAQ:GOOGL increased its capital-expenditure forecast for 2026 to a range of $195 billion to $205 billion, up from its earlier guidance of $180 billion to $190 billion.
Google Cloud posted an 82% increase in revenue, reaching $24.8 billion for the second quarter. CFO Anat Ashkenazi stated, “The demand still outpaces that investment.” SEC
Shares of Micron Technology Inc. NASDAQ:MU were up 3.0% at the start of U.S. trading, while SK hynix’s ADR jumped by more than double that amount. The cap on conversions helps account for the difference in gains.
The primary earnings test comes next week, with SK hynix set to announce its second-quarter results on July 29. Analysts’ preliminary consensus estimates earnings per share at 71,211 won.
The figure is 3.6% higher compared to last month. It marks a 17.8% increase from the estimate three months earlier.
Risks: Expanding the conversion quota may rapidly narrow the ADR premium. Additionally, a firmer won could decrease the dollar differential. If July 29 guidance disappoints, both listings could be affected.
Prior to any quota adjustment, investors need to consider both earnings and market structure. The ADR is not just a dollar equivalent of the Seoul-listed share.
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