SK Hynix Confirms KRW 3.98 Trillion Loss Due to Exchangeable Bond Conversion and Share Price Surge

According to regulatory filings, SK Hynix confirmed a derivative transaction loss of KRW 3.98 trillion related to exchangeable bonds issued in April 2023 in the first half of 2026. The loss stems from bondholders exercising their conversion rights, as well as a rise in the price of SK Hynix's shares listed in South Korea.

SK Hynix stated that the aforementioned accounting loss will not result in actual cash outflows; meanwhile, gains on the disposal of treasury shares recognized upon conversion of the exchangeable bonds into shares have largely offset the related loss.