South Korean authorities absorbed $20 billion in SK Hynix dollar inflows

The purchases were conducted via over-the-counter channels as the memory chip giant moved funds back to Seoul to finance new AI-focused production facilities. While the repatriation was anticipated, the role of the finance ministry and the Bank of Korea as the primary buyers for the bulk of these dollars remained undisclosed until now. SK Hynix, the ministry, and the central bank declined to comment on the matter.

This move deviates from standard market interventions, serving a dual purpose: mitigating currency volatility and replenishing depleted foreign exchange reserves. Economists note that the central bank’s aggressive efforts to defend the won earlier this year significantly drained its dollar holdings. The won has since rebounded, climbing over 12% from a 17-year low of 1,550 against the dollar recorded in late June. Government budget proposals released Tuesday indicate the Foreign Exchange Stabilization Fund is projected at 106.5 trillion won, down from the 135.1 trillion won allocated last year.