1. If you hold US stock ADRs: converting to South Korean stocks is possible, the process is standardized, and it only requires securities accounts on both sides with no policy bottlenecks.


2. If you hold South Korean stocks: converting to US stock ADRs is difficult—there is no freely convertible channel, and you are constrained by both South Korea’s capital controls + existing ADR quota.
3. There is no risk-free two-way arbitrage: one direction is smooth while the other is locked, so ADRs can form a stable premium over South Korean stocks for the long term (benchmarking TSMC’s TSM, which has maintained a 10%–20% premium for years), and you cannot eliminate the price difference through swaps.
TSM-0.61%
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