[Edaily Reporter Park Sun-Yeop ] An analysis suggests that the sharp drop in SK Hynix’s ( SK hynix(000660)) stock price was not due to a deterioration in the semiconductor market or its medium- to long-term earnings outlook, but rather a volatility correction reflecting the combined effects of the expiration of the American Depositary Receipt (ADR) listing catalyst, heightened earnings expectations, and the liquidation of positions by leveraged investors.
Kim Seok-hwan, an analyst at MIRAE ASSET SECURITIES, stated in a report on the 13th, “As expectations for the listing of SK hynix ADRs—which had driven the recent stock price rally—materialized, profit-taking pressure emerged due to the expiration of that catalyst,” adding, “Concerns that second-quarter earnings may fall short of the market’s heightened expectations also played a role.” As SK hynix fell sharply that day, the 35th sell-side “side car” of the year was triggered in the KOSPI market.

SK hynix ADRs began trading on the U.S. Nasdaq market on the 10th under the ticker symbol “SKHY.” On its first day of listing, the ADRs closed at a price approximately 16% higher than the equivalent price of the domestic shares. While there were high expectations that the domestic stock price would rise further following the ADR listing, profit-taking selling pressure emerged once the listing became a reality.
Due to a sharp drop in the domestic stock price, the price gap between the ADR and the domestic stock widened to over 25% during intraday trading that day. As of the first day of listing, the premium stood at 15.6%, similar to the 16.3% premium on Taiwan’s TSMC ADRs. Analyst Kim explained, “Due to conversion constraints, differences in investor bases, and liquidity between the underlying shares and ADRs, a certain level of premium may be structurally maintained,” adding, “While the price difference may fluctuate, the overall trend is likely to remain largely the same.”
Adjustments to earnings expectations also intensified selling pressure. It was recently reported that a domestic institution projected that SK Hynix’s ( SK hynix(000660)) second-quarter operating profit could fall short of market forecasts by about 8%. The reason cited was that, since the company’s revenue share from High-Bandwidth Memory (HBM) is higher than that of its competitors, the positive impact on average selling prices resulting from rising prices of general-purpose memory may be relatively small.
However, Analyst Kim maintained a positive outlook on SK hynix and the semiconductor industry. He believes profit visibility is high, based on the potential for rising HBM prices and long-term supply contracts. MIRAE ASSET SECURITIES forecasts SK hynix’s operating profit at 299 trillion won in 2026 and 449 trillion won in 2027.
Export indicators also suggest that a sharp contraction in semiconductor demand is unlikely. From the 1st to the 10th of this month, South Korea’s exports reached $29.8 billion, a 53.9% increase from the same period last year, marking a record high for that timeframe. Semiconductor exports rose 193% to $11.2 billion, accounting for 37.6% of total exports.
However, some point out that strong fundamentals do not guarantee immediate stability in stock prices. This is because liquidity has recently been concentrated in semiconductors and leveraged products tied to individual stocks, meaning even minor negative news could trigger a chain reaction of position liquidations. On the 9th, the value of forced liquidations surged from 29 billion won the previous day to 142 billion won. Given the time lag between the occurrence of collateral shortages and actual forced sales, the fallout from the sharp decline could persist for several days.
Researcher Kim stated, “This sharp decline appears to reflect the combined effects of the expiration of the ADR listing event, heightened earnings expectations, and the unwinding of leveraged positions,” adding, “We need to monitor the preliminary second-quarter earnings expected on the 29th, the capital expenditure outlook for AI hyperscalers, and whether pressure from forced selling eases.” He went on to advise, “Until supply-and-demand instability is resolved, a phased approach that accounts for volatility is more appropriate than chasing the market based solely on the ADR premium.”