BlockBeats News, July 16th, SK Hynix ADR is expected to open for two-way conversion with its Korean listed common stock by the end of this month, but individual investors are unlikely to be able to carry out the arbitrage trading they had hoped for. Although the conversion is theoretically possible, investors may find it difficult to freely convert like trading ordinary shares. The Korea Securities Depository (KSD) stated on the 16th that the mutual conversion between SK Hynix ADR and Korean common stock will become possible after the 29th (the scheduled listing date for the newly issued Korean common stock). However, the actual conversion process will have to meet several conditions. Converting Korean common stock to ADR can only be done within the ADR issuance limit set by the issuer.

For example, if the ADR issuance limit corresponds to 1 million shares of common stock, and 900,000 shares have already been issued, only 100,000 shares are available for additional conversion. On the other hand, converting ADR back to Korean common stock does not have a separate issuance limit. Industry insiders believe that individual investors will find it challenging to incorporate this into a practical investment strategy. Converting common stock to ADR requires a separate application through a brokerage firm and involves foreign exchange procedures. The processing methods of each brokerage firm also vary, making it impossible to complete the conversion instantly through a mobile trading system or online trading system as with ordinary stocks. (FX678)