[Top 10 Groups Market Cap] 170 Trillion Lost in the First Half of This Year

[Asia Economy Reporter Yoo Hyun-seok] The market capitalization of South Korea's top 10 conglomerates has decreased by 170 trillion won in half a year. Stock prices were significantly influenced by performance affected by the economic downturn or the presence of future growth prospects and innovation stories.

On the 20th, Asia Economy analyzed data requested from financial information company FnGuide, revealing that the market capitalization of 109 stocks from the top 10 groups (including 11th-ranked Shinsegae instead of 10th-ranked Nonghyup) stood at 1,164.8947 trillion won as of the 15th. This represents a 12.64% decrease compared to 1,333.5804 trillion won on December 31 of last year. In monetary terms, it decreased by 12.65% from 1,333.5804 trillion won to 1,164.8947 trillion won as of the 15th of this month. This means that 168.6857 trillion won has disappeared.

Among the top 10 groups, SK Group experienced the largest drop in market capitalization. During the same period, it fell from 211.2331 trillion won to 155.3872 trillion won, a 26.44% (55.8459 trillion won) decrease. Retail powerhouse Shinsegae Group recorded -23.97%, and POSCO, once a symbol of smokestacks, saw -20.52%. Following were ▲Samsung (-19.84%) ▲Hanwha (-19.13%) ▲GS (-18%) ▲Hyundai Motor (-10.81%) ▲Lotte (-9.17%).

As most of the top 10 conglomerate stocks traced a downward curve, the stock market also experienced weakness repeatedly in the first half of this year. Experts analyze that concerns about the global economic downturn were reflected in stock prices. Hwang Se-woon, a researcher at the Korea Capital Market Institute, said, "The risk of an economic recession should be considered significantly reflected," adding, "When a recession occurs, it ultimately leads to a decrease in corporate sales and operating profits."

On the other hand, LG Group's market capitalization increased significantly. This is attributed to the listing effect of LG Energy Solution. During this period, LG Group's market capitalization rose from 129.9479 trillion won to 194.2376 trillion won, an increase of 49.47% (64.2879 trillion won).