Intensifying Battle for Fifth Place in KOSPI Market Cap: Defense vs. Finance vs. Auto

KB Financial Group Surpasses Hanwha Aerospace for Fifth Place During Intraday Trading on the 23rd
KB Financial Group Rises Over 9% This Month
Hanwha Aerospace Pauses After Hitting Peak Price Earlier This Month

This month, competition for the fifth spot in the KOSPI market capitalization rankings has intensified. Earlier in the month, Hanwha Aerospace overtook Hyundai Motor to claim the fifth position, but recently, KB Financial Group has been catching up and is now challenging for the spot.

According to the Korea Exchange on May 26, KB Financial Group surpassed Hanwha Aerospace during intraday trading on May 23 to take the fifth place in market capitalization. On that day, KB Financial Group closed at 99,000 won, up 2.38%, while Hanwha Aerospace ended the session at 830,000 won, down 0.36%. However, Hanwha Aerospace managed to retain the fifth spot by narrowing its losses. The market capitalization gap between the two companies is 296.5 billion won.

Hanwha Aerospace, which had shown strong upward momentum until early this month, has recently seen its stock price pause for breath. After overtaking Hyundai Motor to reach fifth place on May 7, its intraday price climbed to 885,251 won on May 8, nearly breaking the 900,000 won mark, but the upward trend lost steam afterward. Hanwha Aerospace has risen 5.76% so far this month. Given that the stock jumped more than 27% last month, the pace of gains has clearly slowed in May.

In contrast, KB Financial Group has been on a sharp upward trajectory recently. With inflows from foreign and institutional investors, the stock has risen on all but three trading days this month. Starting from the 93,000 won range at the beginning of the month, the price has climbed to 99,000 won, putting the 100,000 won mark within reach. KB Financial Group has gained 9.76% so far this month.

There are expectations that KB Financial Group's strong stock performance will continue, as foreign and institutional buying persists. This month, foreign investors have made net purchases of 109.5 billion won in KB Financial Group, while institutions have bought a net 71.8 billion won. Choi Jungwook, a researcher at Hana Securities, commented on KB Financial Group, saying, "It will continue to play a leading role in the upcoming bank stock rerating process," and added, "Given that foreign buying has recently resumed, there is significant potential for further gains."

Solid earnings are also expected to continue. Kim Eungap, a researcher at Kiwoom Securities, predicted, "KB Financial Group's consolidated net profit this year is expected to increase by 12.7% compared to last year, continuing its record-breaking performance."

Although Hanwha Aerospace is currently taking a breather, it is expected to continue strengthening its growth drivers, making a resumption of its upward trend likely. Jang Namhyun, a researcher at Korea Investment & Securities, analyzed Hanwha Aerospace, stating, "Investments to secure local production facilities and build strategic partnerships are accelerating, which will strengthen its position as a global defense company across the United States, the Middle East, Europe, and Asia. With the existing order backlog, stable earnings improvement is possible. Through proactive investments, the company will expand its market share in each region and further reinforce its growth engines."

The possibility of a rebound by Hyundai Motor, which has fallen behind both Hanwha Aerospace and KB Financial Group, cannot be ruled out. Hyundai Motor's stock price has remained sluggish this year due to concerns over tariffs, resulting in the company dropping to seventh place in market capitalization. Hyundai Motor's share price has fallen 5.61% so far this month. Nam Jooshin, a researcher at DB Financial Investment, commented, "The stock is extremely undervalued in terms of price-earnings ratio (PER) and price-to-book ratio (PBR). In the short term, changes in tariff policy could trigger a rebound, and in the mid- to long-term, the realization of future business prospects could also make it easier for the stock to recover."