KOSPI and KOSDAQ Market Cap Shakeup... SK's Market Cap Among Top 4 Groups Increases by 42.5 Trillion Won

Kia and KakaoBank Enter Top 10 Market Cap... NAVER and Kakao Make Strides
KOSDAQ: EcoPro BM and Celltrion Healthcare Market Cap Gap Narrows to 1 Trillion

LG Energy Solution to Go Public Next Year... Market Cap Competition Among Top 4 Groups Expected to Intensify

[Asia Economy Reporter Minji Lee] This year, the competition for market capitalization rankings within the KOSPI and KOSDAQ stock markets was intense. Internet stocks surged on the KOSPI, while secondary battery and gaming stocks rose on the KOSDAQ. Among the four major conglomerates this year, SK Group's entry into the stock market stood out, with its market capitalization growing to the largest scale.

◆ KOSPI Kia and KakaoBank, KOSDAQ L&F and Wemade Enter Top 10

According to the Korea Exchange on the 19th, two new stocks entered the top 10 in market capitalization rankings of common stocks on the KOSPI. Celltrion and Samsung C&T, which were in the top 10 last year, fell out of the top 10, replaced by Kia (34.2937 trillion KRW) and KakaoBank (30.3626 trillion KRW). Kia, ranked 12th at the end of last year, rose to 9th due to strong performance and expectations for its electric vehicle business, following Hyundai Motor (44.7634 trillion KRW). KakaoBank (30.3626 trillion KRW) became the leading financial stock immediately upon its listing on August 6 and even surpassed Hyundai Motor in market capitalization at one point, reaching 8th place.

Internet companies, which showed a significant price increase in the first half of the year, also made progress. NAVER increased from 48.047 trillion KRW to 63.1593 trillion KRW, rising from 6th to 4th in market capitalization, and Kakao rose from 34.446 trillion KRW to 52.3797 trillion KRW, climbing from 9th to 5th. Celltrion dropped from 5th to 11th on the KOSPI market cap ranking, with its market cap decreasing by nearly 20 trillion KRW from 48.4642 trillion KRW to 28.5551 trillion KRW this year. Samsung C&T fell from 10th to 17th, being overtaken by major newly listed growth stocks such as Krafton (14th) and KakaoPay (15th).

On the KOSDAQ, two stocks were replaced within the top 10 market capitalization rankings. Bio stock Alteogen, which was 4th, and 5G equipment stock KMwires, which was 10th, dropped to 12th and 33rd respectively. Instead, secondary battery material stock L&F (6.9481 trillion KRW) jumped from 20th to 4th, and gaming stock Wemade (5.3716 trillion KRW), which was ranked 104th at the end of last year, soared to 6th place.

Among stocks maintaining their top 10 positions, the rankings of secondary battery and gaming stocks notably rose, including Ecopro BM (7th to 2nd), Pearl Abyss (9th to 3rd), and Kakao Games (8th to 5th). Ecopro BM, in particular, narrowed the market cap gap with the top-ranked Celltrion Healthcare to about 1.6 trillion KRW, eyeing the top spot. Conversely, bio stocks such as Celltrion Pharm (2nd to 7th), HLB (5th to 9th), and Seegene (3rd to 10th) saw significant declines in their rankings.

◆ Among the Four Major Groups, SK Market Cap Increased by 42.5 Trillion KRW, LG Decreased by 9 Trillion KRW

SK REITs (SK Entrusted Management Real Estate Investment Company) will enter the KOSPI market next month. Photo of SK Group headquarters, SK Seorin Building in Jongno-gu, on the 18th. Photo by Moon Honam munonam@

Among the four major groups this year, SK Group's market capitalization surged. The combined market cap of 27 SK Group listed companies (including preferred stocks) reached 211.8 trillion KRW, an increase of about 42.5 trillion KRW (25.13%) from 169.2 trillion KRW at the end of last year. The listings of SK Bioscience (19.7 trillion KRW) and SK IE Technology (12.3 trillion KRW) in the first half of the year led the increase in the group's market capitalization.

The Samsung Group, with 23 listed companies, saw its market cap rise by about 8 trillion KRW (1.10%) from 724.6 trillion KRW at the end of last year to 732.6 trillion KRW. Although Samsung Electronics' stock price, which had sharply risen at the end of last year and early this year, showed sluggish movement and briefly fell below the 700 trillion KRW mark in October, it has since recovered due to the rebound in Samsung Electronics' stock and positive factors such as the approval of the Moderna vaccine product, leading to a significant rise in Samsung Biologics' stock price and regaining the 700 trillion KRW level.

The market capitalization of 17 listed companies in the Hyundai Motor Group increased by 17.2 trillion KRW (from 118.8 trillion KRW to 136 trillion KRW) compared to the end of last year. Thirteen companies, including Kia (37.34%), Hyundai Motor (9.11%), Hyundai Steel (8.33%), Hyundai Construction (31.18%), Hyundai AutoEver (5.26%), and Hyundai Wia (43.55%), saw their market caps rise, while four companies, including Hyundai Mobis (-4.11%) and Hyundai Glovis (-10.60%), experienced declines.

In contrast, LG Group (134.6 trillion KRW) saw its market capitalization decrease by about 9.4 trillion KRW, dropping to 4th place behind Hyundai Motor Group. LG Chem, the leading battery stock (8.4 trillion KRW), faced issues such as the General Motors (GM) electric vehicle recall and the full-scale listing of LG Energy Solution after a physical division, causing its market cap ranking to fall from 3rd to 6th. LG Innotek, considered a beneficiary of the Apple Car, surged 81.92% this year, but LG Electronics (-3.70%) and LG Household & Health Care (-29.94%) also reduced the group's overall market capitalization.

Additionally, the Kakao Group rose to 5th place in market capitalization this year, growing about threefold from 37.4 trillion KRW at the end of last year to 115.1 trillion KRW, thanks to the listings of KakaoBank (30 trillion KRW) and KakaoPay (24.3 trillion KRW).

With large-scale stock listings planned by groups next year as well, competition in group market capitalization is expected to intensify. LG Energy Solution, scheduled to list in January next year, is projected to have a market cap of 60 to 70 trillion KRW based on its public offering price, with some estimates suggesting it could reach over 100 trillion KRW. If LG Energy Solution's listing is successful, LG Group's market capitalization is expected to surpass Hyundai Motor and SK Groups to become the second largest. Within Hyundai Motor Group, Hyundai Engineering (4 to 6 trillion KRW) and within Kakao Group, Kakao Mobility and Kakao Entertainment are preparing for stock market listings.