Looking at the Market Capitalization of the Top 10 Groups... Samsung Group Increased by 27 Trillion Won This Year

Samsung Electronics, Samsung Electro-Mechanics, Samsung SDI All Hit Record Highs... Up 5.7%
86% of Total Market Cap Increase from Top 10 Groups
Shinsegae Up 6.3% Leading Gains... Lotte, Hyundai Motor, GS Decline

[Asia Economy Reporter Song Hwajeong] Samsung Electronics and other Samsung Group stocks have shown strong performance since the beginning of the year, resulting in an increase of nearly 27 trillion KRW in Samsung Group's market capitalization so far this year. This accounts for 86% of the total market cap increase among the top 10 conglomerates. Shinsegae Group recorded the highest market cap growth rate. On the other hand, Lotte, Hyundai Motor, and GS groups experienced sluggish stock performance in the new year.

According to financial information provider FnGuide on the 17th, as of the closing price on the 15th, the market capitalization of the top 10 conglomerates increased by 3.61% (31.1984 trillion KRW) since the beginning of the year.

The Samsung Group led the overall market cap increase. The combined market capitalization of 16 Samsung Group stocks reached 497.479 trillion KRW, increasing by 26.8836 trillion KRW this year alone. This represents 86% of the total market cap increase.

Samsung Electronics has shown strength by hitting all-time highs this year, and other group stocks also recorded new highs, contributing to the market cap growth. On this day, Samsung Electronics rose to 62,000 KRW in early trading, setting a new intraday record and continuing its high price streak this year. Additionally, Samsung Electro-Mechanics, Samsung SDI, and Samsung Biologics also hit new highs this year. Samsung Electronics' market cap increased by 22.6852 trillion KRW this year. In terms of growth rate, Samsung SDI recorded the highest increase within the group at 15.3%, followed by Hotel Shilla (12.23%), Samsung Electronics (6.88%), Samsung Electro-Mechanics (5.53%), and Samsung Heavy Industries (3.74%).

Among the top 10 conglomerates, seven groups saw their market caps increase, allowing major groups to start the year smoothly. Shinsegae's market cap grew by 6.31%, the highest growth rate among the top 10 groups, followed by Samsung (5.71%), LG (3.85%), and POSCO (3.05%). Conversely, Lotte (-1.15%), Hyundai Motor (-1.38%), and GS (-1.44%) experienced declines in market capitalization this year.

By individual stocks, SK Group's In크로스 saw the largest growth with an 18.65% increase in market cap this year, followed by Shinsegae International (18.18%), Samsung SDI, Hyundai Rotem (12.94%), LG Household & Health Care (12.32%), POSCO Chemical (11.04%), and Shinsegae (10.6%), all recording double-digit growth rates. On the other hand, SK Networks decreased by 9.32%, the largest drop, followed by G2R (-7.42%), SM Core (-6.54%), SK Innovation (-6.48%), Lotte Fine Chemical (-5.44%), LG Uplus (-5.42%), POSCO Coated & Color Steel (-4.99%), Hyundai AutoEver (-4.86%), SK (-4.84%), and Lotte Insurance (-4.84%), all showing declines.

Notably, SK Group showed a stark contrast in market cap changes among its stocks. The highest increase and the largest decrease in market cap growth rates both belonged to SK Group. While In크로스, SK Bioland (6.67%), and SK Hynix (3.7%) performed well, the market caps of SK Networks, SK Innovation, and SK declined, pulling down the overall growth rate.

With improvements in the semiconductor industry, the strong stock performance driven by earnings growth of Samsung Electronics and SK Hynix, which hold the first and second largest market caps, is expected to continue, suggesting that the market capitalization of the top 10 conglomerates will further increase.

Kim Dongwon, a researcher at KB Securities, said, "DRAM prices are expected to rebound faster than initially anticipated starting from the first quarter, marking a turnaround after six quarters since the third quarter of 2018," adding, "Samsung Electronics' semiconductor operating profit this year is estimated to increase by 76% year-on-year to 24.5 trillion KRW, and SK Hynix is expected to grow by 168% to 7.9 trillion KRW."