Record amounts of funds are flowing into South Korean ETFs, and SK Hynix's ADR premium has sparked a craze for "proxy investments".

Zhitong Finance and Economics App learned that the listing of SK Hynix (SKHY.US) American Depositary Receipts (ADR) is triggering a rare cross-border capital arbitrage frenzy. Investors are indirectly holding SK Hynix's local stocks by buying South Korean ETFs listed in the United States, leading to BlackRock's iShares MSCI South Korea ETF (EWY) attracting $1.1 billion in a single day on Wednesday, July 15. The ETF had already recorded a record inflow of $814 million the previous day, July 14. The massive influx of funds over two consecutive days has inflated EWY's assets by over 180% to reach $23 billion during this period.