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South Korea’s FX Stabilization Fund bought about $20B in US dollars
The purchase used proceeds from SK hynix’s July ADR listing in the United States, which raised about $26.5 billion.
SK hynix’s US listing has had a second knock-on effect in South Korea, according to Yahoo Finance. Reuters, cited by the outlet, reported that the country’s Foreign Exchange Stabilization Fund bought about $20 billion in US dollars from SK hynix in July.
The FX fund is jointly run by South Korea’s finance ministry and the Bank of Korea. The dollars, Reuters said, came from proceeds SK hynix brought back to Korea after its ADR listing.
SK hynix priced its American depositary receipts at $149 apiece in July, raising roughly $26.5 billion for expansion plans that include new factories and equipment, according to the report.
After trading opened, SK hynix shares jumped 13% on the first day, closing at $168.01. Yahoo Finance linked investor momentum to demand for memory chips used in AI servers, including high bandwidth memory, or HBM.