[The KOSPI 2600 Era] Top 10 Groups' Market Cap Also 'Unstoppably High Kick'

Total Soars 22.32% This Year to 1,069 Trillion Won
LG Group Up 44.52%, Largest Increase
Hanwha, Samsung, Hyundai Motor Also See Significant Growth
Shinsegae, GS, Hyundai Heavy Industries Actually Decline

[Asia Economy Reporter Song Hwajeong] As the KOSPI reached an all-time high, the market capitalization of the top 10 conglomerates also showed a significant increase this year.

According to financial information firm FnGuide on the 24th, the combined market capitalization of the top 10 groups surpassed 1,000 trillion won. It rose 22.32% from 874 trillion won at the end of last year to 1,069 trillion won based on the previous day's closing price.

Among the groups, LG Group showed a remarkable increase. LG Group's market capitalization grew 44.52% from 84 trillion won at the end of last year to 122 trillion won. Hanwha, which increased its market capitalization by 42.51% this year, followed. Others ranked as Samsung (23.76%), Hyundai Motor (22.24%), SK (17.13%), POSCO (8.19%), and Lotte (2.59%). Among the top 10 groups, Shinsegae, GS, and Hyundai Heavy Industries saw a decrease in market capitalization. Hyundai Heavy Industries recorded the largest decline, dropping 14.83% from 17 trillion won at the end of last year to the 14 trillion won range as of the previous day.

By stock, pharmaceutical stocks stood out this year due to the COVID-19 pandemic, with SK Group stocks performing notably well. SK Chemicals' market capitalization surged 601.56% from 751.4 billion won at the end of last year to 5.2719 trillion won as of the previous day, marking the largest increase. SK Discovery followed with a 168.83% increase, rising from under 500 billion won at 497.8 billion won to 1.3307 trillion won. Additionally, the listing of SK Biopharm contributed to the market capitalization growth. Hanwha Solutions increased by 155.51%, and LG Chem and Samsung SDI, boosted by the strong performance of secondary battery stocks, saw their market capitalizations rise by 135.59% and 122.88%, respectively. Samsung Biologics, the leading bio stock, increased by 85.68%, and Samsung Electronics' market capitalization grew 20.97% this year.

On the other hand, LG HelloVision saw the largest decline in market capitalization this year, dropping 35.87%. Samsung Engineering (-30.21%), Shinsegae International (-29.84%), Lotte Confectionery (-29.77%), GS (-27.42%), and Hyundai Heavy Industries Holdings (-25.96%) also experienced significant decreases. Among the groups, Hyundai Heavy Industries, which had the largest market capitalization decline, saw Hyundai Energy Solutions' market capitalization surge 126.38%, but Hyundai Heavy Industries Holdings and Korea Shipbuilding & Offshore Engineering (-19.37%) reduced the overall market capitalization.

With the KOSPI showing continuous strength, the market capitalization of the top 10 conglomerates is expected to keep increasing, mainly led by leading stocks. In particular, Samsung Electronics, the flagship stock, has been hitting all-time highs daily, driving the market capitalization growth. As of 10:05 a.m. on the day, Samsung Electronics was trading at 69,000 won, up 2.22% (1,500 won) from the previous day. It rose to 69,500 won during the session, marking a new high for two consecutive days. The previous day, it surged over 4%, pushing its market capitalization past 400 trillion won for the first time based on the closing price. Kim Unho, a researcher at IBK Investment & Securities, raised Samsung Electronics' target price to 83,000 won, stating, "Considering the operating profit forecast of 44 trillion won for next year, it is still undervalued," and explained, "Given the improvement in the semiconductor industry and display profit recovery, there is ample room for further gains."