Explained: Why SK Hynix ADR premiums soared 50% over South Korean shares and how this reminds market of dotcom bubble

SK Hynix ADRs surged 27% recovering from a 9% crash, pushing the ADR premium over South Korean shares to 51%, far above the 3% gap at the $26.5 billion offering. The premium is attributed to frozen arbitrage as underlying shares do not list in Korea until July 29, with options trading beginning on US exchanges driving the rally. The article compares the situation to TSMC's dotcom-era ADR premium exceeding 100%, while noting that Korean Kospi's heavy dependence on chip giants Samsung Electronics and SK Hynix, which together account for nearly half the index weight, has amplified market volatility.