AI Leader vs. Next Emperor Stock vs. Nuclear Power Hopeful... Intensifying Race for Fifth Place in Market Cap

Naver Overtakes Hanwha Aerospace to Claim Fifth Place in Market Capitalization
Doosan Enerbility, Benefiting from Nuclear Power, Closes in at Sixth Place
Hanwha Aerospace Maintains Favorable Business Environment

There has been another major shift in the KOSPI market capitalization rankings. After Hanwha Aerospace, the so-called "next emperor stock," overtook Hyundai Motor last month to claim the fifth spot by market cap, this time it is Naver, the leading "artificial intelligence (AI) stock," that has taken over the position. With Doosan Enerbility, a "nuclear power hopeful," also entering the fray, competition for the fifth spot in market capitalization is expected to intensify even further.

According to the Korea Exchange on June 24, Naver closed at 290,000 won on the previous day, up 7.61%, securing the fifth place in market capitalization at 45.9467 trillion won. Doosan Enerbility, which hit a new 52-week high alongside Naver, soared nearly 14%, finishing in sixth place with a market cap of 43.9425 trillion won. Hanwha Aerospace, which had been vying with Naver for the fifth spot until 30 minutes before the market closed, fell by about 2%, dropping to seventh place with a market cap of 43.4652 trillion won.

In Naver's case, expectations for domestic demand stimulus measures promoted by the Lee Jaemyung administration, the fostering of the AI industry, and the use of stablecoins have combined to drive the stock to new record highs for four consecutive trading days. The company has continued to receive positive news, including the appointment of its first "AI Chief" (Ha Jungwoo, Head of Naver Cloud AI Innovation Center) and the nomination of former Naver CEO Han Seongsook as a candidate for Minister of SMEs and Startups. In contrast, despite the strength of defense stocks amid heightened tensions between Iran and the United States, Hanwha Aerospace failed to join the rally, and consequently lost its position not only to Naver but also to Doosan Enerbility.

Competition for the fifth spot in KOSPI market capitalization is expected to remain fierce. While LG Energy Solution, firmly in fourth place, maintains a gap of more than 22 trillion won over the fifth place, the differences among the fifth to ninth spots are relatively small. In fact, when Hanwha Aerospace overtook Hyundai Motor to reach fifth place last month, both Celltrion and Kia were in the top ten. However, with Naver and Doosan Enerbility surging, both have now dropped out of the rankings.

Naver is currently seen as the frontrunner in the race for the fifth spot. Ahn Jaemin, a researcher at NH Investment & Securities, stated, "The same issues that drove the internet sector's stock prices in 2020?domestic demand stimulus, blockchain, and AI?are reappearing in 2025, so we expect the stock price to continue rising for the time being." He raised Naver's target price from 280,000 won to 380,000 won. With consumer coupons for stabilizing people's livelihoods expected to drive growth in advertising and commerce revenue under the Lee Jaemyung administration, a series of events are highlighting Naver's competitiveness, including "sovereign AI" and stablecoins.

Doosan Enerbility is also considered an unignorable dark horse, as it is seen as the biggest beneficiary of the global "nuclear renaissance." Lee Sangheon, a researcher at iM Securities, said, "Following the signing of the main contract for the Czech nuclear power plant, orders are expanding in various fields such as the Middle East, Westinghouse equipment, and small modular reactors (SMRs)." He predicted, "From this year, the nuclear business division is expected to secure more than 4 trillion won in large-scale nuclear power equipment orders annually."

Although Hanwha Aerospace has been overtaken by the two companies above, its business environment is still considered favorable. Bae Seongjo, a researcher at Hanwha Investment & Securities, said, "With the North Atlantic Treaty Organization (NATO) leading the trend of increasing international defense budgets, the company's active local production strategy is expected to continuously strengthen its export pipeline." He added, "If specific business cooperation details for the Saudi Ministry of National Guard joint venture (advanced weapons introduction and defense infrastructure construction) become visible within the year, it could serve as a powerful new momentum for the company."