Semiconductor Giants Propel Samsung and SK Group Market Cap Past 1,000 Trillion Won

Combined Market Cap of Samsung and SK Groups Reaches 1,117.4718 Trillion Won
Accounts for One-Third of the Entire Korean Stock Market
SK Hynix Up 42.43%, Samsung Electronics Up 19.61%

With Samsung Electronics and SK Hynix, the two leading semiconductor companies, showing record-breaking strength, the market capitalization of Samsung Group and SK Group, to which these two stocks belong, has also surged, with the combined market capitalization of the two groups surpassing 1,000 trillion won.

According to financial information provider FnGuide on September 24, the market capitalization of Samsung Group stood at 754.1659 trillion won, while SK Group recorded 363.3059 trillion won. The combined market capitalization of the two groups reached 1,117.4718 trillion won. This figure accounts for one-third of the total market capitalization of the Korean stock market. In just one month, it increased by more than 192 trillion won. A month earlier, the combined market capitalization of the two groups was 924.6311 trillion won.

Among the top 10 conglomerates, SK Group saw the largest increase in market capitalization over the past month. Its market capitalization jumped by 35.05%, from 269.0252 trillion won last month to 363.3059 trillion won.

Samsung Group followed, with a 15.03% increase. The group's market capitalization rose from 655.6059 trillion won last month to 754.1659 trillion won.

By individual stocks, SK Hynix and SK Square led the increase in SK Group's market capitalization, while Samsung Electro-Mechanics and Samsung Electronics drove the growth for Samsung Group. Compared to a month ago, SK Square’s market capitalization rose by 60.87%, SK Hynix by 42.43%, Samsung Electro-Mechanics by 30.25%, and Samsung Electronics by 19.61%.

In particular, the record-breaking strength of Samsung Electronics and SK Hynix, which account for the largest share of the domestic stock market, has provided solid support for the increase in both groups' market capitalization. Samsung Electronics has recently continued its strong stock performance, reclaiming the 80,000 won mark and surpassing 500 trillion won in market capitalization. It is the first time in about one year and two months since the end of July last year that Samsung Electronics’ market capitalization has exceeded 500 trillion won. On the previous day, the stock price even climbed to 86,200 won during trading, setting a new 52-week high. SK Hynix, which has been repeatedly hitting all-time highs, surpassed 260 trillion won in market capitalization for the first time ever.

SK Square, the largest shareholder of SK Hynix, saw its stock price soar by more than 60% over the past month, thanks to the rise in SK Hynix’s stock price. Kim Jangwon, a researcher at BNK Investment & Securities, analyzed, "SK Square’s influence over SK Hynix is increasing in value due to higher dividend income," adding, "Although volatility has increased, the momentum is unlikely to subside as long as confidence in SK Hynix remains strong."

With expectations that the strength of Samsung Electronics and SK Hynix will continue, the market capitalization of both groups is projected to increase further. Recently, securities firms have been raising their target prices for Samsung Electronics and SK Hynix one after another.

On the previous day, Hanwha Investment & Securities raised its target price for SK Hynix by 22%, from 360,000 won to 440,000 won. Kim Gwangjin, a researcher at Hanwha Investment & Securities, explained, "Currently, both high-bandwidth memory (HBM) and conventional memory are performing well, making the outlook for next year’s profit growth very clear," adding, "Considering the recent rapid changes in the memory market, we are raising SK Hynix’s expected operating profit for next year from 42.3 trillion won to 50.1 trillion won." He further stated, "The profit growth cycle for SK Hynix, which will continue into next year, is unprecedented, and it is appropriate to move away from the conventional multiples applied in the past."

Previously, KB Securities raised its target price for SK Hynix from 340,000 won to 460,000 won, Shinyoung Securities raised its target from 330,000 won to 400,000 won, and SK Securities increased its target from 300,000 won to 480,000 won.

Target prices for Samsung Electronics have also been continuously raised recently. Kiwoom Securities raised its target from 90,000 won to 105,000 won, KB Securities from 90,000 won to 110,000 won, and Daol Investment & Securities from 83,000 won to 100,000 won. Kim Dongwon, a researcher at KB Securities, said, "The upward revision of the target price reflects a sharp increase in memory demand, leading us to raise our net profit estimates for 2025 and 2026 by 16.1% and 24.4%, respectively," adding, "In particular, operating profit in the second half of this year is expected to reach 20.8 trillion won, the highest in four years since the second half of 2021, as the pace of improvement in semiconductor performance exceeds expectations."