South Korea Reportedly Bought $20 Billion From SK Hynix to Absorb Dollar Inflows

A reported $20 billion foreign-exchange transaction linked one of the world’s largest chip fundraisings to South Korea’s currency-management toolkit.

According to a source with direct knowledge cited by Reuters, South Korean foreign-exchange authorities bought about $20 billion in U.S. dollars sold by SK Hynix as the company repatriated proceeds from its $26.5 billion American depositary receipt (ADR) offering in July. The reported purchaser was the Foreign Exchange Stabilization Fund, with the transactions conducted over the counter rather than through the open market. 1

What authorities reportedly did

The Foreign Exchange Stabilization Fund reportedly absorbed most of the dollars SK Hynix sold while bringing the ADR proceeds back to South Korea. The fund is managed by the finance ministry and the Bank of Korea. Reuters reported that SK Hynix, the ministry and the central bank declined to comment. 1

An over-the-counter transaction means the exchange was arranged privately between counterparties rather than executed visibly on a public trading venue. In this case, that structure would let authorities handle an unusually large corporate dollar conversion without placing the full amount directly into the spot market at once.

Why buying the dollars mattered

SK Hynix’s U.S. offering generated a very large potential supply of dollars for conversion into won. The company raised about $26.5 billion after pricing its ADRs at $149, according to a regulatory filing reported by Reuters. 2

When a company sells dollars to fund domestic spending, that can increase demand for won and potentially contribute to a stronger won. By reportedly purchasing dollars from SK Hynix, the stabilization fund could absorb part of that inflow while adding to its dollar resources. Reuters described the move as occurring after earlier operations to support the won had, in the view of market participants and economists, reduced the fund’s dollar share. 1

That does not establish a precise official intervention target: the fund’s detailed asset allocation and current size are not publicly disclosed. Officially, it is described as a pool containing U.S. dollars and Korean won. 1

The backdrop: a recovering won and a depleted dollar pool

The reported purchase followed a sharp move in the currency. Reuters reported that the dollar-won exchange rate had approached 1,550 in late June before the won gained more than 12% over the following two months. The currency had been among Asia’s weakest in 2025. 1

Against that backdrop, absorbing a concentrated corporate dollar inflow could help limit abrupt exchange-rate moves. It also gave the fund an opportunity to replenish dollars after previous won-support operations, according to the Reuters report. 1

How SK Hynix planned to use the funds

The ADR sale was tied to SK Hynix’s investment plans during a period of strong demand for AI-related memory chips. Reuters reported that the company planned to use the proceeds for new factories and equipment. 1

The $26.5 billion fundraising itself underscored investor demand for the chipmaker: Reuters described it as the largest U.S. offering by a foreign issuer. 2

What the fund’s operating-plan figures show

The Foreign Exchange Stabilization Fund’s National Assembly-approved operating plan was 135.1 trillion won, or about $98.7 billion. The government’s proposed level was about 106.5 trillion won—28.6 trillion won lower, a reduction of roughly 21%. 1

Those figures concern the fund’s operating-plan level, not a public disclosure of its current dollar balance. Because the authorities do not publish the fund’s exact asset mix, the reported $20 billion purchase should not be read as a complete measure of its available foreign-currency resources. 1

Bottom line

South Korea’s stabilization fund reportedly used private, over-the-counter deals to buy roughly $20 billion of SK Hynix’s repatriated ADR proceeds. The transaction appears designed to absorb an exceptional dollar inflow, reduce the risk of disruptive currency-market effects and restore dollar capacity after prior won-support activity. But key details—including the fund’s exact holdings and the authorities’ specific policy objective—remain undisclosed. 1