SK Hynix has officially disclosed a loss resulting from derivative transactions related to Exchangeable Bonds (EB) issued on April 11, 2023. The company reported a loss of 3,977,121,095,025 KRW (~$2.81 billion USD based on 1417 KRW/USD), which represents approximately 3.3% of the company’s total equity as of the end of 2025.
According to the filing, this loss was recognized accounting-wise due to the exercise of exchange rights and an increase in the company’s stock price. In compliance with Korean International Financial Reporting Standards (K-IFRS), the embedded derivatives within the exchangeable bonds were evaluated at fair value. The company explicitly stated that this is a non-cash accounting loss and does not involve actual cash outflows.
Furthermore, SK Hynix noted that these derivative transaction and valuation losses are offset by gains from the disposal of treasury shares recognized when the exchangeable bonds are converted into shares. Consequently, the overall impact on the company’s total equity is expected to be minimal.