Korea Securities Depository (KSD) said on the 16th SK Hynix ADRs and
Korea-listed ordinary shares will be eligible for two-way conversion after the
29th, the scheduled listing date for newly issued Korea ordinary shares.
Conversions will require meeting multiple conditions: converting Korea ordinary
shares into ADRs is limited by an issuer-set ADR issuance cap (for example, if
the cap equals 1.0 mln ordinary shares and 0.9 mln have already been issued,
only 0.1 mln remain available for new conversions); converting ADRs back into
Korea ordinary shares carries no separate issuance-cap restriction. Industry
participants say retail investors will find arbitrage hard to implement because
converting ordinary shares into ADRs requires a separate broker application, FX
conversion and other procedures, and processes vary by broker, so conversions
cannot be executed instantly via mobile or online trading systems.
