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SNOWSHAGALINVESTMENT NOTE NO.17
INVESTMENT NOTE NO.17SK hynix · ADRFollow-up to No. 09

Same SK hynix.
New York ADRs Trade Over 40% Higher

The conversion route from Seoul to New York is blocked.
And the buyback supporting Seoul shares has ended.

42.1% premium based on Oct. 23 KRX regular-session close (15:30 KST) and Nasdaq close · 46.8% on Oct. 21 (DS Investment & Securities)1, 2, 3

Snowshagal ResearchPublished Oct. 25, 2026 (Sun.)Approx. 9-minute read

SEOULKRX · 15:30 KST
NEW YORKNASDAQ · 16:00 ET
+42%Oct 231.277m1.815mOne common shareTen ADRsBLOCKEDOPENSEOULNEW YORK
Premium 7/10 16% → 10/23 42%Bold: 10-day avg.JulOct
Common → ADR deposit cap
2.4%17.79m shares · exhausted in July ADR offering100% of capacity used · no headroom left
Share buyback
KRW 40tn23.69m shares acquired · ended Oct. 2141 sessions of consecutive buying · about one month early
Next key date
10.28Wed., 09:00 KST earnings call · further capital-return details expected10/21Buyback ends10/23Solidigm decision10/28Earnings

EXECUTIVE SUMMARY

  1. The same equity interest costs more in New York. Ten SK hynix ADRs represent one Korean common share, yet trade at a premium of more than 40%.
  2. Market structure helps keep the spread open. Incremental U.S. demand and selling in Seoul created the gap. Converting cheaper Korean shares into ADRs for sale in New York is blocked because the deposit cap is full.
  3. Where conversion is possible, premiums are smaller. Toyota and Alibaba trade within 0–2%; KB Financial and Shinhan Financial have gaps below 1% (DS Investment & Securities).
  4. A major source of buying support has disappeared. The company finished its share buyback a month ahead of schedule. The premium did not narrow during the repurchase period.
  5. On Oct. 28, the form of capital returns matters. Will the promised additional returns take the form of another buyback or dividends? And will management address the ADR deposit limit?

The equity trades far more cheaply in Seoul, prompting claims that the Korean shares are undervalued. But two questions matter: Does the New York ADR price establish a price target for the Seoul-listed shares? And is the buying that had supported the Seoul market still there? We covered the demand gap left by the end of a repurchase program in Investment Note No. 09, “When the Buyer Steps Away”.4

01The Premium

From 16% on the first trading day
to over 40% in three months

The same underlying equity now commands a much wider price gap than it did when the ADRs began trading.

THE BASICS

What is an ADR?

An American Depositary Receipt (ADR) is a U.S.-traded security issued by a depositary bank against underlying shares held by a custodian in the home market. Citibank is SK hynix's depositary bank. Ten SK hynix ADRs represent one Korean common share and carry proportional dividend entitlements. Actual cash received can be affected by depositary fees, currency conversion and taxes; voting rights are exercised through the depositary.1, 5

FIGURE 1

Despite daily swings,
the 10-session average is at a post-listing high

Premium of ten ADRs, converted into KRW, over one Korean common share · same-date closing prices · July 10–Oct. 23, 2026

0%20%40%60%JulAugSepOctJul 10 when-issued 16%10/21 47%10/23 42%Daily10-session average
0%20%40%60%JulAugSepOctJul 10 when-issued 16%10/21 47%10/23 42%Daily10-session average
USD/KRW conversion uses the 15:30 Seoul FX market closing rate · see “Methodology” below2, 3

WHAT THE DATA SHOW

  • Seen from Seoul, on Oct. 23 the common shares were about 30% cheaper than the ADR equivalents. That is the same price difference expressed as a 42% ADR premium.
  • A daily reading reflects both markets' price moves and their different closing times. New York's close incorporates developments after Seoul has shut. The 10-session average (Oct. 23: 45%) smooths daily volatility but does not remove the time-zone mismatch.
  • The premium widened not because the New York security rose. Since July 10, the ADR's KRW-equivalent price has fallen 28%, while the Korean common shares have dropped 41%. Seoul fell further.
02The Mechanics

The route from cheaper Seoul shares to New York ADRs is blocked

Arbitrage would normally compress a price gap. For SK hynix, the second step is unavailable.

  1. Buy the cheaper common shares in Seoul
  2. Convert the common shares into ADRs
    The company-approved deposit capacity has already been exhausted
  3. Sell the higher-priced ADRs in New York
    Repeated transactions would push Seoul prices up and New York prices down, narrowing the spread
FIGURE 2

Between the two markets,
only one conversion route remains open

Conversion between SK hynix common shares and ADRs · as of Oct. 23

SEOULKOSPI · 000660SK hynix common1 shareNEW YORKNASDAQ · SKHYSK hynix ADR10 ADRs = 1 commonCommon → ADR · BLOCKEDCap: 17.79m shares (2.4% of shares outstanding)Filled by July ADR offeringADR → Common · OPENSEC-registered ADS amount (~24% of shares) ≠ issuer-approved deposit cap (2.4%)
SEOULKOSPI · 000660SK hynix common1 shareNEW YORKNASDAQ · SKHYSK hynix ADR10 ADRs = 1 commonCommon → ADRBLOCKEDCap: 17.79m (2.4%)Filled at offeringADR → CommonOPENSEC ADS ~24% ≠ approved deposit cap 2.4%
DS Investment & Securities analysis based on Korea Securities Depository and SK hynix materials1

WHAT THE DATA SHOW

  • The issuer sets the deposit limit. DS Investment & Securities explains that Korean rules require an issuer's consent to deposit common shares for ADR issuance. SK hynix's approved limit equaled the July offering size, so the offering used it up. The roughly 24% ADS amount in U.S. registration documents is a registration ceiling, not currently available conversion capacity.1, 5
  • The 2.4% offering size reflected the controlling shareholder's stake. The company sized the offering to keep SK Square's ownership at or above 20%. Converting already-issued common shares into ADRs does not increase shares outstanding, so that ownership threshold is unaffected by the conversion itself.1
  • The reverse route is open, but offers little incentive. Investors can cancel ADRs and receive the underlying Korean shares, subject to procedures and fees. With the ADR trading at a premium, however, converting and selling in Seoul makes little economic sense.
  • Some U.S. capital can buy ADRs but not Korean shares. Following the U.S. listing, the ADR joined semiconductor indices restricted to U.S.-listed securities, attracting investment that would not ordinarily reach the Korean exchange.1

The upshot: different investor demand and selling pressure across the two markets created the gap; conversion limits prevent arbitrage from closing it. The ADR price cannot simply be worked backward into a fair-value estimate for the Seoul stock. Whether the common shares are cheap relative to their underlying business is a separate question of earnings and cash flow.

DS Investment & Securities also suggests that short-covering and hedging-related sales around the offering may have amplified selling in the Korean shares (a hypothesis, not an established cause).1

03Peer Comparison

Where conversions remain possible,
the price gaps are smaller

The proportion of shares held through ADRs does not explain the premium on its own. The ability to create or re-deposit ADRs is another important variable.

FIGURE 3

Conversion constraints coincide
with wider ADR premiums

ADR premium over home-market shares · peers: trailing 12-month averages from DS Investment & Securities · SK hynix: average since listing and Oct. 23 same-date close

0%10%20%30%40%50%Unrestricted conversionToyota · Sony · Alibaba0~2%Conversion available (Korea)KB Financial · Shinhan · POSCO · KEPCO0.2~0.6%New supply halted · re-deposit restrictedTSMC · ADR share ~20%~18%Deposit cap exhaustedSK hynix · since listing (Jul 10–Oct 23)37% avg.10/23 42%
0%10%20%30%40%50%Unrestricted conversionToyota · Sony · Alibaba0~2%Conversion available (Korea)KB Financial · Shinhan · POSCO · KEPCO0.2~0.6%New supply halted · re-deposit restrictedTSMC · ADR share ~20%~18%Deposit cap exhaustedSK hynix · since listing (Jul 10–Oct 23)37% avg.10/23 42%
The measurement periods differ: compare the broad levels, not bar lengths as strictly like-for-like figures. TSMC and SK hynix also face different legal and contractual conversion constraints.1, 2, 3

WHAT THE DATA SHOW

  • Korean issuers still have room under their deposit limits. KB Financial, Shinhan Financial, POSCO Holdings and Korea Electric Power have relatively small ADR floats (2–6% of outstanding shares), but common-to-ADR conversion remains available. KB Financial has authorized deposits equivalent to approximately 31% of its outstanding shares, with only around 18% of that capacity used.1
  • TSMC's premium fell when ADR supply expanded. Major shareholders Philips and Taiwan's government fund contributed shares to ADR supply, lifting ADR representation to 22%. The average premium over the three months before each supply event declined from 43% in 2000 to 3% in 2005. The collapse of the dot-com bubble also played a part: ADR prices fell more sharply than the Taiwan-listed shares during that period.1
04Share Buybacks

The KRW 40tn bid supporting Seoul
ended on October 21

Conversion restrictions keep the intermarket spread in place. The buyback was not a mechanism for eliminating that spread; it was a source of demand that absorbed selling in Seoul.

Why two different buyback end dates appearCross-check of DART filings, company statements and exchange executions · as of Oct. 25
SourceDateFinding
Hanwha Investment & Securities (Oct. 20)6Nov. 19Scheduled endThe final day of the Aug. 20–Nov. 19 intended repurchase period stated in the Aug. 19 DART board-decision filing7
Daishin Securities (Oct. 22)8Oct. 21Actual completionThe company said it completed the program on Oct. 21, about a month ahead of schedule9
Exchange executions · DARTCumulative through Oct. 2123.69m shares acquiredExchange-reported executions totaled 23,693,272 shares, against 24.07m planned. As of the Oct. 25 review, the final acquisition report had not yet been filed. Confirm the final average purchase price and cancellation timetable in subsequent disclosures.10, 11
FIGURE 4

The premium widened sharply in July–August
and did not close during the buyback

Closing prices: one SK hynix common share versus ten ADRs (KRW equivalent) · July 10–Oct. 23, 2026 · shaded area marks the buyback period

Buyback: Aug 20–Oct 211.0m1.5m2.0m2.5mJulAugSepOctADR 1.815mSeoul 1.277mSeoul: 1 commonNew York: 10 ADRs (KRW)
Buyback: Aug 20–Oct 211.0m1.5m2.0m2.5mJulAugSepOctADR1.815mCommon1.277mSeoul: 1 commonNew York: 10 ADRs (KRW)
KRW conversion uses the Seoul FX market's USD/KRW closing rate2, 3

THE SEQUENCE

  • July 10–Aug. 19: The common shares fell 31%, versus a 13% decline for ADRs in KRW terms. Seoul's decline was more than twice as large.
  • Aug. 20–Oct. 21 (41 trading sessions): SK hynix bought shares on 41 consecutive sessions, using the full KRW 40tn authorized budget—roughly KRW 1tn a day on average.10 In September, stronger ADR performance widened the premium further. Across the full repurchase period, both the common shares (−13.7%) and KRW-adjusted ADRs (−13.0%) fell by roughly 13%.
  • Near the end of the program: Foreign investors had been net sellers of SK hynix for 18 straight sessions, selling a cumulative KRW 16.2tn, before turning net buyers on Oct. 21.12, 13
July equity issuance versus
August–October buybackIf all shares actually repurchased are canceled, shares outstanding fall by approximately 5.90 million net. Cancellation status and timing require confirmation in later filings.5, 10, 11
MetricJuly · new shares backing ADRsAug–Oct · buyback (cancellation planned)
Number of shares17.79m 2.4% of shares outstanding23,693,272 3.2% · executed; 24.07m originally planned
Total amountKRW 39.8905tn USD 26.5bnKRW 40tn Full authorized amount
Price per shareApprox. KRW 2.24m USD 149 per ADR · actual offer priceSimple average: ~KRW 1.688m Total spend / shares executed · final price subject to the acquisition report

Direct buying by the company has stopped. Daishin Securities described the exit as the loss of a major buyer that had been absorbing foreign-investor selling.14 When the KOSPI fell 3.5% on Oct. 22, IBK Investment & Securities and Daishin cited the conclusion of the buyback as one source of flow-related pressure, alongside doubts about the profitability of AI investment and instability in the Middle East.8, 15

A falling stock price during a buyback does not prove the repurchases had no effect. We cannot observe where the stock would have traded without them.

A related development

In an Oct. 23 disclosure, SK hynix said it had suspended consideration of a pre-IPO financing round and IPO for its subsidiary Solidigm,whose potential listing had raised concerns about a separately listed subsidiary. Management said it needed to reassess whether an IPO would be in the best interests of SK hynix and its existing shareholders.16, 17, 18

05Counterarguments · What could change the conclusion

A narrowing premium need not mean
a rising share price in Seoul

  1. Illustrative calculation

    New York could fall instead

    Holding the Korean share price and USD/KRW exchange rate constant, an ADR decline of roughly 30% would erase the Oct. 23 premium. The Korean shares would return 0% in that scenario. A narrower premium is not the same thing as a rally in Seoul. TSMC's gap also contracted in 2000–02 partly because its ADRs fell faster than its Taiwan-listed shares.1

  2. TSMC since 2008

    The gap can persist for years

    With no further net ADR supply after 2008 and re-deposits effectively restricted, TSMC's premium widened again to 15–20% as AI-related U.S. demand strengthened in recent years.1

  3. DS Investment & Securities hypothesis

    Management may have little incentive to raise the limit

    DS Investment & Securities suggests that if the premium persists, management might favor issuing ADR-backed equity at a higher New York price while repurchasing and canceling cheaper Korean shares. A larger ADR base could also change the voting composition at shareholder meetings. ADR voting rights are not exercised where investors provide no voting instructions.1

The more useful question, then, is whether the conversion route reopens—not simply how large the premium is. The Oct. 28 earnings call may offer the first indication.

06What to Watch

On October 28, watch
the form of returns—and the ADR deposit limit

  1. 10.28 09:00Earnings call · KST

    SK hynix Q3 results

    Analysts expect operating profit of approximately KRW 76–77tn.19, 20 In August, SK hynix raised its 2025–27 cumulative free-cash-flow (FCF) return target from “up to 50%” to “at least 50%,” and said it would outline the amount and method of distributions at this earnings event. The ADR deposit cap is not on the announced agenda; the question is whether management addresses it. The company has said it must first assess relevant regulatory requirements and filing procedures.9, 18, 21, 22

  2. 10.29 10:00KST

    Samsung Electronics Q3 results

    Daishin Securities is watching whether capital returns from Korea's two semiconductor leaders can replace the buying support that has disappeared.14, 23

  3. Date TBDFollowing completion of the buyback

    Final acquisition report · cancellation notice

    Confirm the number of shares acquired, final average price and schedule for retirement.7, 11

  4. DailyAfter the market close

    ADR premium

    When the gap narrows, determine whether Seoul rose, New York fell, or both.

How to read the
October 28 announcementWhat each outcome would change · an interpretation framework, not a share-price forecast
AnnouncementWhat changes
New buyback and start dateDirect buying demand returns to Seoul; the size and pace of execution matter
Higher dividends (including a special dividend)Shareholders receive more cash, but no new purchase orders are created in the market simply by paying a dividend
Final number and timing of existing treasury-share cancellationsCompletion of an existing plan, separate from any new buying
Higher deposit cap with an application timetableA route opens for arbitrage to narrow the intermarket spread
Only an indication that a cap increase is “under review”Signals an intention but leaves the date for actual conversions uncertain

KNOWNConfirmed facts

  • ADR premium: 46.8% on Oct. 21 (DS Investment & Securities); 42.1% on Oct. 23
  • Common → ADR cap exhausted at 17.79m shares (2.4%; DS Investment & Securities); reverse conversion remains available
  • KRW 40tn buyback · ~23.69m shares · completed Oct. 21 (planned window Aug. 20–Nov. 19)

ESTIMATEEstimates and hypotheses

  • Short-covering and hedging-related sales around the offering may have widened the gap (DS Investment & Securities)
  • Calls to expand the deposit cap and simplify conversion procedures may grow (DS Investment & Securities)
  • Potential additional shareholder returns of at least KRW 30tn, possibly weighted toward buybacks and cancellations (Hana Securities, reported Oct. 24)19

UNKNOWNStill unknown

  • The form (new buyback or dividends) and timing of additional capital returns
  • Whether the issuer will increase the deposit limit
  • The final average repurchase price and completed cancellation date
A premium of more than 40% for the ADRs does not imply 40% upside for the Korean shares. The two markets have different sources of demand, and the mechanism that might close the gap is restricted. The premium could narrow because New York falls rather than because Seoul rises. On Oct. 28, separate two questions: Will additional shareholder returns arrive as direct buyback demand or as dividends? And will the deposit cap actually change, allowing the intermarket spread to close? Valuing the common shares still comes down to earnings and cash flow.

Commentary based on public filings and brokerage research · see sources for cut-off dates and calculations

METHODOLOGY · How the ADR premium is calculated

Convert ten ADRs into KRW and compare their combined value with one Korean common share. On Oct. 23: USD 137.02 × 10 × KRW 1,324.6 per USD = KRW 1,814,967, a 42.1% premium over the Korean closing price of KRW 1,277,000.2, 3

Seoul closes at 15:30 KST, while New York closes in the early hours of the following morning in Korea. Even when dated identically, the two closing prices reflect different information sets, producing volatile daily readings. A moving average does not eliminate that timing mismatch. The choice of FX rate (market closing rate versus market-average reference rate) can also alter the result by 0.1–0.3 percentage points.

TERMS · GLOSSARY
ADR
American Depositary Receipt. A U.S.-traded security issued by a U.S. depositary bank against underlying shares held with a local custodian. For SK hynix, ten ADRs represent one Korean common share.
Depositary bank · Re-deposit
The depositary is the U.S. bank that issues ADRs (Citibank for SK hynix). Re-deposit means converting shares obtained by canceling ADRs back into ADRs.
Deposit cap
The maximum number of common shares that can be deposited for ADR conversion. Such deposits are permitted only within the limit approved by the issuer (per DS Investment & Securities).
Arbitrage
Buying an economically equivalent security where it is cheaper and selling it where it trades at a higher price to capture the spread. Such transactions typically narrow the discrepancy.
ADR premium / discount
The percentage by which the KRW-equivalent ADR price exceeds (premium) or falls below (discount) the price of the underlying Korean shares.
Treasury-share cancellation
The permanent retirement of shares repurchased by a company, reducing shares outstanding and potentially increasing each remaining share's claim on earnings.
Material event report (DART)
A regulatory filing made to the Financial Services Commission and the exchange when a company decides on a material transaction, such as a treasury-share repurchase.
Separate listing of a subsidiary
A parent and its subsidiary both trading on public exchanges. This can raise concerns about dilution of economic value available to the parent's shareholders.
SOURCES · DATA CUT-OFF · METHODOLOGY

Published: Oct. 25, 2026 · Information cut-off: evening of Oct. 25, 2026 (KST). Equity prices: Oct. 23 KRX regular-session close in Seoul and Oct. 23 Nasdaq close in New York (U.S. date). FX: Oct. 23 Seoul USD/KRW closing rate. DART filings and news checked through Oct. 25.

Data coverageDaily ADR and Korean common-share closing prices, July 10–Oct. 23, 2026 (Yahoo Finance, checked Oct. 24; Korean prices use 15:30 KRX regular-session closes) · Seoul USD/KRW FX market closing rates at 15:30 for the same dates (Bank of Korea ECOS) · Aug. 19 shareholder-return plan (reported by Digital Daily, Smart Today, The Korea Times and The Korea Herald) · cumulative buyback executions through Oct. 21 (Etoday and Newsway, based on KIND exchange data) · DART filings dated July 15 (ADR equity-issuance result), Aug. 19 (share acquisition and cancellation decisions), Oct. 14 (IR event notice), Oct. 23 (Solidigm clarification) · no final buyback acquisition report found in the issuer's disclosures as of Oct. 25 · company's position on ADR conversion cap and explanation of Solidigm decision (Edaily, Oct. 25) · brokerage forecast of additional capital returns (JaeKyung Daily, Oct. 24) · foreign-investor flows on Oct. 21–22 (Kiwoom Securities).
Calculation methodologyADR premium = (ADR close × 10 × USD/KRW market close ÷ Korean common-share close) − 1, matching calendar dates across 69 trading observations · July 10: 15.7%; Oct. 21: 46.7%; Oct. 23: 42.1% · 10-session simple moving average: 45.1% on Oct. 23, the highest in the sample · monthly averages by the same method: July 10 onward 29.8%; August 35.8%; September 40.1%; Oct. 1–23 43.4% · Oct. 23 common-share discount relative to ADR value = 1 − 1 ÷ 1.4213 ≈ 29.6% · ADR-only drop required to close the spread = 1 − 1,277,000 ÷ 1,814,967 ≈ 29.6% (illustrative; fixed Korean share price and FX) · simple average since listing: 37.3% over 69 sessions · July 10 to Oct. 23 Korean common: KRW 2,180,000 → 1,277,000 (−41.4%); ADR KRW equivalent: 2,522,502 → 1,814,967 (−28.0%); ADR in USD: 168.01 → 137.02 (−18.4%) · July 10–Aug. 19: Korean common −31.2%, ADR KRW equivalent −13.5% · Aug. 19–Oct. 21: Korean common KRW 1,500,000 → 1,294,000 (−13.7%); ADR KRW equivalent KRW 2,182,648 → 1,898,349 (−13.0%) · buyback period Aug. 20–Oct. 21: 41 trading sessions; KRW 40tn / 41 ≈ KRW 0.98tn a session · new common share backing July ADR issuance: KRW 39.8905tn / 17.79m shares ≈ KRW 2.24m · net decline in shares outstanding upon cancellation of all executed repurchases: 23,693,272 − 17,790,000 = 5,903,272 shares (the originally planned repurchase count would imply a net reduction of 6.28m) · implied simple average buyback price = KRW 40,004,340,000,000 / 23,693,272 ≈ KRW 1,688,426 · share ratios use 730,492,365 outstanding shares before cancellations (17.79m = 2.4%; 24.07m planned = 3.3%; 23,693,272 executed = 3.2%).
Differences between sourcesDS Investment & Securities' 46.8% figure for Oct. 21 uses Bloomberg data; matching close-to-close equity prices with the Seoul FX market close gives 46.7%, versus 47.0% using the market-average reference FX rate · DS Investment & Securities reports monthly averages of 25.6% for July, 34.2% for August and 40.0% for September; these differ from the averages above (by 4.2 percentage points in July), and the broker does not disclose its exact calculation · Figure 3 uses the same-date-close average since SK hynix's ADR listing and the Oct. 23 observation; the DS Investment & Securities comparison table shows a range of 37–47% for the recent three-month/current period · the approximately 24% ADS amount in the U.S. F-6 registration is cited from DS Investment & Securities · the broker's approximate KRW 2.25m per newly issued common share uses the proposed issue amount and the July 9 market-average reference rate of KRW 1,509.9/USD; the actual issuance proceeds and July 14 reference rate of KRW 1,504.9/USD imply about KRW 2.24m · Yonhap's 24.07m buyback shares were the planned quantity in the board-decision filing; actual exchange executions totaled 23,693,272 shares (Etoday, KIND regular-session data), leaving 376,728 unexecuted; repurchases were managed against a cash budget · Hanwha's Nov. 19 date was the scheduled end in the DART filing, while Daishin's Oct. 21 date was actual completion · TSMC premiums vary by reference period even within the DS Investment & Securities report: ~17.8% trailing 12-month average (table), 15–20% (text), and 23% average for 2025 (historical supply-period table) · July 10 was the first day of when-issued trading, ahead of regular trading on July 13 · reported Q3 operating-profit forecasts range from KRW 75.9tn (JaeKyung Daily, Oct. 25, brokers' estimates) to KRW 76.964tn (FnGuide, cited by JaeKyung Daily on Oct. 24).
Limits of interpretationThe ADR premium compares same-calendar-date closing prices, despite different market closing times · peer-company premiums are trailing 12-month averages compiled by DS Investment & Securities · observed share-price changes during the buyback period do not isolate the causal effect of repurchases.
  1. DS Investment & Securities, Su-hyun Kim, “SK hynix ADR Premium: Difficult to Leave Unaddressed,” SK Group Comment, Oct. 23, 2026 · reported monthly premiums: July 25.6%, August 34.2%, September 40.0%, latest 46.8% (Table 1, Oct. 21) · common → ADR deposit cap of 17.79m shares exhausted by July offering; ADR → common conversion available · issuer consent required under Korean rules for common-share deposits into ADRs; issuer determines the cap · SEC-registered ADS amount approximately 24% of shares outstanding versus issuer-approved conversion limit of 2.4% (17.79m) · offering size preserved SK Square ownership above 20% (146.1m shares; 20.5% before offering and 20.0% afterward); converting existing shares does not change ownership percentages · demand from semiconductor indices restricted to U.S.-listed shares · possible short-covering and hedging sales around the subscription period (broker hypothesis) · Table 3 trailing-year premiums by conversion structure (SK hynix: recent three months/current): Toyota, Sony, Alibaba 0–2%; KB Financial, Shinhan Financial, POSCO Holdings, KEPCO 0.2–0.6%; TSMC approximately 18%; SK hynix 37–47% · KB Financial authorized deposit ratio ~31% with 18% of capacity used; ADR ratios of four Korean issuers 2–6% · TSMC ADR ratio 2.9% in 1997 to 22% in 2008, three-month pre-supply premium 43% in June 2000 to 3% in August 2005, faster ADR losses in 2000–02, no net new ADR supply after 2008 and re-deposits effectively restricted, premium 15–20% · SK hynix July new equity for ADRs: 17.79m shares at ~KRW 2.25m each, ~KRW 40tn; August plan to repurchase and retire 24.07m common shares, reducing the net share count by 6.28m if fully completed as initially planned · ADR votes exercised through the depositary; uninstructed votes not cast.
  2. Yahoo Finance daily closing prices · SKHY (Nasdaq, SK hynix ADR) and 000660.KS (KOSPI) · July 10–Oct. 23, 2026 · checked Oct. 24 · SKHY: USD 168.01 (July 10), USD 143.25 (Oct. 21), USD 137.02 (Oct. 23) · Korean common: KRW 2,180,000 (July 10), 1,500,000 (Aug. 19), 1,294,000 (Oct. 21), 1,277,000 (Oct. 23) · finance.yahoo.com
  3. Bank of Korea Economic Statistics System (ECOS), series 731Y003, USD/KRW 15:30 market closing rate · daily, July 10–Oct. 23, 2026 · KRW 1,501.4 (July 10), 1,397.7 (Aug. 19), 1,325.2 (Oct. 21), 1,324.6 (Oct. 23) per USD · ecos.bok.or.kr
  4. Snowshagal Investment Note No. 09, “When the Buyer Steps Away” · Oct. 8, 2026 · market flows after a major buyback ends · snowshagal.com
  5. SK hynix, “Results of Paid-in Capital Increase or Issuance of Equity-Linked Securities (Voluntary Disclosure),” DART · July 15, 2026 · private placement to overseas depositary Citibank, N.A., of 17,790,000 common shares; actual issuance amount KRW 39,890,534,790,000 (ADR offering proceeds USD 26,507,100,000 × July 14 market-average reference FX rate of KRW 1,504.90/USD); payment date July 14, 2026 · dart.fss.or.kr
  6. Hanwha Investment & Securities, Se-yeon Park, “Solidigm's Potential Listing: Balancing SK hynix Growth and Shareholder Value,” ESG note · Oct. 20, 2026 · schedule lists “Nov. 19: end of SK hynix's planned KRW 40tn share repurchase for cancellation, approved Aug. 19.”
  7. SK hynix, “Material Event Report: Decision to Acquire Treasury Shares,” DART · Aug. 19, 2026 · planned acquisition window Aug. 20–Nov. 19, purchases on exchange, daily order limit 2,407,000 shares · no final acquisition report found in issuer-specific DART filings as of Oct. 25 · dart.fss.or.kr
  8. Daishin Securities, Kyung-min Lee, “Limited Relief Despite Strong Meta and Tesla Results; Market Liquidity Support Weakens,” Quantitative Strategy Plan · Oct. 22, 2026 · notes that the SK hynix buyback ended the preceding day, further eroding support for market flows; average daily KOSPI turnover over the preceding month ~KRW 20tn versus ~KRW 13tn on the day ·
  9. Yonhap News Agency, Cho-rong Park, “SK hynix Completes KRW 40 Trillion Share Buyback,” Oct. 21, 2026, 16:52 · reports completion Oct. 21, approximately one month before the originally planned Aug. 20–Nov. 19 period ended; KRW 40,004,340,000,000 and a planned 24.07m shares (~3.3% of shares outstanding) for full retirement; additional capital-return plans expected at Oct. 28 Q3 results · Reprint by Hanminjok Center · also covered by Bloomingbit, Oct. 21, 2026 bloomingbit.io
  10. Etoday, Hye-ju Shin, “SK hynix Completes KRW 40tn Buyback, Ending a Key Source of Stock-Market Support,” Oct. 21, 2026, 17:30 · cumulative executions of 23,693,272 shares at the KRX regular-session close, based on KIND disclosures; cumulative spend KRW 40,004,340,000,000 (equal to the board-authorized budget); through Oct. 20, 23.25m shares / KRW 39.427tn over 40 sessions; remaining ~KRW 577.3bn spent Oct. 21; 376,728 planned shares not executed (1.57%); 41 consecutive buying sessions; budget-based execution (SK Securities) · etoday.co.kr · same executed share count reported by Newsway, Oct. 21, 2026 newsway.co.kr
  11. SK hynix, “Decision to Retire Shares,” DART · Aug. 19, 2026 · originally planned cancellation of 24,070,000 common shares; outstanding share count before cancellation: 730,492,365; planned retirement amount KRW 40,004,340,000,000 · number of shares calculated using the Aug. 18 closing price of KRW 1,662,000, and actual share count and amount may vary with the market price; precise count to be disclosed in an amended filing · all acquired shares intended to be retired together after completion · dart.fss.or.kr
  12. Kiwoom Securities, Ji-young Han, “Market Risks from Disrupted Flows and Deteriorating Sentiment May Ease Gradually,” Oct. 21, 2026 · “foreign investors were net sellers of SK hynix for 18 consecutive trading sessions, totaling KRW 16.2tn” (start date not specified) ·
  13. Kiwoom Securities, Ji-young Han, “Strong Earnings Have Yet to End the Market's Wait-and-See Mood,” Oct. 22, 2026 · SK hynix returned to foreign net buying on Oct. 21 after 18 straight sessions of net selling ·
  14. Daishin Securities, Kyung-min Lee, “What Could Reverse AI Sentiment: Watch Upcoming Corporate Earnings,” weekly Quantitative Strategy Plan · Oct. 23, 2026 · SK hynix Q3 results Oct. 28 and Samsung Electronics final Q3 results Oct. 29; after SK hynix's buyback ended, “a major buyer absorbing foreign selling is absent”; potential capital-return plans from the two chipmakers could fill the flow gap ·
  15. IBK Investment & Securities, Investment Analysis Division, market comment · Oct. 23, 2026 · KOSPI closed Oct. 22 at 5,533.77 (−3.52%) amid concerns about returns on AI infrastructure investment and instability in the Middle East; said the completion of Samsung Electronics and SK hynix buybacks contributed to selling pressure and weaker market flows ·
  16. SK hynix, “Clarification of Rumors or Media Reports,” DART · Oct. 23, 2026 · final response to an Aug. 5 preliminary disclosure prompted by Korea Economic Daily's report on a possible KRW 5tn pre-IPO round for U.S. subsidiary Solidigm · issuer stated that, after considering capital-market conditions and other factors, it had decided to discontinue consideration of a pre-IPO financing and initial public offering · dart.fss.or.kr
  17. Yuanta Securities, Yong-gu Kim and Se-bin Kim, “Separate Subsidiary Listings: The Key Is Protecting Shareholders,” October ESG Issues Focus · Oct. 21, 2026 · at an Oct. 19 parliamentary audit, Financial Supervisory Service Governor Chan-jin Lee said the proposed Solidigm listing constituted a separate subsidiary listing ·
  18. Edaily, Yun-jung Kim, “SK hynix Drops Solidigm Listing; ADR Premium Remains Unresolved,” Oct. 25, 2026, 12:04 · company said proposed deposit-cap expansion would first require review of relevant rules and regulatory filings; on Solidigm, it questioned whether an IPO would presently deliver the best outcome for SK hynix and existing shareholders · edaily.co.kr
  19. JaeKyung Daily, Sun-won Kang, “SK hynix Withdraws Solidigm Listing; Spotlight on KRW 30tn in Potential Capital Returns,” Oct. 24, 2026, 13:48 · Hana Securities analyst Rok-ho Kim projected at least KRW 30tn in additional shareholder-return capacity, possibly focused on buybacks and cancellations rather than dividends; Meritz Securities analyst Sun-woo Kim anticipated a more substantial return plan than previously expected; share price rose 4.4% on Oct. 23 after the Solidigm disclosure; FnGuide Q3 consensus revenue KRW 98.2257tn and operating profit KRW 76.964tn · news.jkn.co.kr
  20. JaeKyung Daily, Gyeo-re Lee, “Samsung Electronics and SK hynix Report Q3 Earnings: Combined Operating Profit Could Reach KRW 185tn,” Oct. 25, 2026, 18:36 · broker estimates for SK hynix Q3 revenue around KRW 96.6tn and operating profit around KRW 75.9tn · final Q3 figures scheduled for Oct. 28 · news.jkn.co.kr
  21. SK hynix, “Investor Relations Event Notice,” DART · Oct. 14, 2026 · third-quarter 2026 results presentation, Oct. 28 at 09:00 KST, via conference call and webcast · dart.fss.or.kr
  22. Digital Daily, “SK hynix to Repurchase and Retire KRW 40tn of Shares, Raise Shareholder Returns to at Least 50% of FCF,” Aug. 19, 2026 · raised three-year cumulative FCF capital-return target from “up to 50%” to “at least 50%”; stated that the specific amount and method would be announced with Q3 results following a board decision; buyback/retirement to be accompanied by dividends, with consideration of increased regular and special dividends · ddaily.co.kr · also reported by Smart Today, Aug. 19, 2026 smarttoday.co.kr · also reported by The Korea Times, Aug. 19, 2026 (2025–27 cumulative FCF: “up to 50 percent” → “50 percent or more”) koreatimes.co.kr · also reported by The Korea Herald, Aug. 19, 2026 (“lift payouts above 50% of free cash flow”) koreaherald.com
  23. Samsung Electronics IR calendar · third-quarter 2026 earnings conference call on Oct. 29 at 10:00 KST · samsung.com