Wall Street Expert Says Samsung Electronics Should Also List on U.S. Exchange Like SK hynix [SK hynix ADR Boost]

David Samra, Managing Director at Artisan Partners

"With ADR listing, U.S. investors can trade at low cost

through domestic brokers without currency risk"

Editor's NoteSK hynix is pursuing a listing on the New York Stock Exchange with a target of completing it within the year, drawing both anticipation and concern in the market. This article examines the effects and limitations of ADR listings, referencing the case of Taiwanese semiconductor company TSMC, which entered the New York Stock Exchange as the first company to issue American Depositary Receipts (ADRs) over 30 years ago.

Yonhap News

There are calls from Wall Street that Samsung Electronics, like SK hynix, should also list its American Depositary Receipts (ADRs). They argue that listing on the U.S. exchange would allow Samsung Electronics to escape the so-called "Korea Discount"—the undervaluation of Korean stocks—and benefit from a valuation reappraisal and improved liquidity.

David Samra, managing director of Artisan Partners. Artisan Partners

David Samra, managing director of U.S. asset management company Artisan Partners (pictured), said in a recent written interview with The Asia Business Daily, "Re-listing ADRs based on existing shares can deliver meaningful effects." Founded in 1994, Artisan Partners is a U.S.-based active management company that, as of the end of last year, held a 0.7% stake in Samsung Electronics, making it a major shareholder. The firm has been investing in Samsung Electronics for over 10 years.

The company has been recommending to Samsung Electronics that it pursue an ADR listing on the U.S. exchange long before SK hynix announced its own ADR listing plans. However, Samra noted that, unlike SK hynix, which would issue new ADRs, Samsung Electronics would need to offer its existing shares on the U.S. market. He explained, "Samsung Electronics is not in urgent need of capital at the moment," and added, "Since they already possess ample capital strength, there is no need to issue new shares in the U.S. or other markets." He further emphasized, "Even if existing shares are re-listed in the form of ADRs traded on the U.S. market, the company can still enjoy various advantages."

He believes that ADRs could establish a structure where U.S. market funds flow more easily into Samsung Electronics. "The United States is home to the world's largest pool of investment capital, and a significant portion of it is still managed with a domestic focus," he said. He added, "ADR listing opens a way for American individual investors to invest in Samsung Electronics stock at low cost through their local brokers without the burden of currency exchange."

The potential for inclusion in global indices was also cited as a key incentive. He said, "If a Nasdaq listing is realized, Samsung Electronics could be included in major indices, thereby attracting more stable, long-term capital." One of the representative Exchange Traded Funds (ETFs) tracking the Nasdaq 100 Index is Invesco's Nasdaq 100 ETF, "QQQ." According to Invesco, as of April 2026, QQQ's assets under management (AUM) amounted to approximately 395 billion dollars (about 585 trillion won).

He assessed, "It is true that the barriers to entry for the Korean stock market have been significantly lowered and the relative attractiveness of ADR listings has decreased compared to the past." This year, investor identification requirements have been simplified, and foreign institutions can now trade via omnibus accounts. Especially for institutional investors, it has become possible to open an account with only a Legal Entity Identifier (LEI) without prior registration.

However, he stressed, "Nevertheless, it is important to note that the U.S. still holds the world's largest pool of investable capital, and a considerable portion is still managed domestically," emphasizing the potential for increased liquidity and improved price discovery through ADRs.

A Samsung Electronics representative stated, "We have no official position on this matter."

This content was produced with the assistance of AI translation services.