S.Korea FX Authorities Buy $20 Billion in Repatriated Funds

South Korean foreign exchange authorities have made a significant move to stabilize their country's currency. The Foreign Exchange Stabilization Fund, managed by the nation's finance ministry and the Bank of Korea, purchased around $20 billion in U.S. dollars that SK Hynix sold after its listing on Wall Street.

The fund bought the dollars through over-the-counter transactions as SK Hynix repatriated funds to South Korea. This move is different from traditional FX interventions and aims to stabilize market volatility while replenishing the country's depleted forex reserves.

SK Hynix, the finance ministry, and the Bank of Korea declined to comment on the matter. The company raised $26.5 billion through its American depositary receipt listing in July and planned to use the proceeds to finance new factories and equipment to meet surging AI chip demand.