South Korea Buys $20 Billion From SK Hynix to Boost Reserves

South Korean foreign exchange authorities purchased approximately $20 billion in U.S. dollars from SK Hynix through over-the-counter trades. The transaction followed the chipmaker's $26.5 billion American depositary receipt listing in July, which stands as the largest U.S. share sale by a foreign issuer.

The purchases were executed by the Foreign Exchange Stabilization Fund, a sovereign pool managed by the Ministry of Economy and Finance and the Bank of Korea. This unconventional intervention aims to replenish national forex reserves that were depleted during previous efforts to defend the won and to reduce volatility in the foreign exchange market.

SK Hynix plans to use the proceeds from its Wall Street listing to fund new factories and equipment to meet the rising demand for AI chips. The Ministry of Economy and Finance, the Bank of Korea, and SK Hynix have declined to comment on the specific transactions.