SK Hynix Books 3.98 Trillion Won Loss From Exchangeable-Bond Conversions and Share-Price Gains
According to regulatory filings, SK Hynix recognized a 3.98 trillion won loss in derivative transactions related to exchangeable bonds issued in April 2023 during the first half of 2026. The loss resulted from bondholders exercising their exchange rights and an increase in the price of SK Hynix shares listed in South Korea. SK Hynix said the accounting loss would not result in an actual cash outflow. Gains on the disposal of treasury shares recognized when the exchangeable bonds were converted into shares had largely offset the related loss, the company said. All of the exchangeable bonds had been converted into shares during the first half of the year. As a result, no derivative valuation loss related to that bond issue remained at the end of the period.
The loss resulted from bondholders exercising their exchange rights and an increase in the price of SK Hynix shares listed in South Korea.
SK Hynix said the accounting loss would not result in an actual cash outflow. Gains on the disposal of treasury shares recognized when the exchangeable bonds were converted into shares had largely offset the related loss, the company said.
All of the exchangeable bonds had been converted into shares during the first half of the year. As a result, no derivative valuation loss related to that bond issue remained at the end of the period.