SK Hynix Converts $40 Trillion ADR Funds to Won, Pushes KRW/USD to 1,473 from 1,555

According to Kookmin Ilbo, SK Hynix converted several trillion won from its 40 trillion won ADR fundraising into local money market funds this week, pushing the KRW/USD exchange rate down to 1,473.40 on July 21 from 1,555.80 on July 2, its highest level since the 2008 financial crisis.

The won's appreciation coincided with renewed foreign investor interest in KOSPI stocks. On July 14, when the exchange rate fell below 1,500 won, foreign investors made net purchases of nearly 1 trillion won in Korean equities. Foreign investors continued selective buying through July 21, purchasing 295.1 billion won on that day as the broader KOSPI index rose 3.56%.