Report on Listing Treasury Shares on US Stock Market... SK Hynix Says "Nothing Has Been Finalized"

Inquiry Disclosure Issued Following Previous Day’s Media Reports
"Reviewing Various Measures to Enhance Corporate Value"
"Will Disclose Again When Specific Details Are Finalized"

SK Hynix stated in response to an inquiry disclosure regarding reports of a potential listing of its treasury shares on the US stock market, "We are reviewing various measures to enhance corporate value, but nothing has been finalized as of now," on December 10.

SK Hynix headquarters in Icheon-si, Gyeonggi-do. Photo by Yonhap News

The company added, "We will make an additional disclosure either when specific details are finalized or within one month."

This inquiry disclosure was made following media reports the previous day that SK Hynix is considering listing its treasury shares on the US stock market in the form of American Depositary Receipts (ADRs).

A Depositary Receipt (DR) is a substitute security issued to facilitate the trading of a company's shares in overseas markets. When a company deposits its original shares with a domestic custodian, a foreign depositary institution (such as a local bank) issues depositary receipts backed by these shares, allowing them to be traded in overseas markets. When issued in the United States, they are called ADRs.

Industry experts believe that if ADRs are traded in the US market, SK Hynix could be revalued to the level of competitors such as Micron. Based on this year's expected earnings, SK Hynix's price-to-earnings ratio (PER) stands at about 11 times, which is significantly lower than Micron's approximately 29 times. As a result, there is an analysis that SK Hynix remains undervalued.