Accounting for 52.8% of the Total: Combined Market Cap of Korea’s Top 10 Conglomerates Reaches 1,005 Trillion Won | BusinessKorea

Wednesday, November 22, 2017

Seoul, Korea
13 November 2017 - 11:15am
Yoon Yung Sil

The market cap of major conglomerates such as Samsung, SK and LG Group, showed a rapid rise as capital is focused on tech companies due to the fourth Industrial Revolution and there is a semiconductor boom in the market.

According to the Korea Exchange (KRX) on November 12, the combined market capital of listed companies from South Korea’s top 10 biggest business groups in terms of assets came to 1,005.2 trillion won (US$896.96 billion) as of November 10, accounting for 52.8 percent of the total market cap of 1,905.2 trillion won (US$1.7 trillion). The market cap of the nation’s top 10 business groups stood at 750.9 trillion won (US$669.85 billion) at the end of last year, taking up 49.7 percent of the total. 

The market cap of Samsung Group increased by 167 trillion won (US$148.97 billion), or 42.3 percent, from 394.8 trillion won (US$352.19 billion) at the end of last year to 561.8 trillion won (US$501.16 billion) as of November 10. 

The market cap of SK Group grew by 40.6 trillion won (US$36.22 billion), or 45 percent, from 90.3 trillion won (US$80.55 billion) to 130.9 trillion won (US$116.77 billion) over the same period, while that of LG Group rose by 31.5 trillion won (US$28.1 billion) from 74.7 trillion won (US$66.64 billion) to 106.2 trillion won (US$94.74 billion). 

This is because the market caps of Samsung Electronics, SK Hynix and LG Electronics have surged due to the fact that IT companies gained ground in the global market owing to the fourth Industrial Revolution and semiconductor boom. 

In fact, the market cap of Samsung Electronics increased from 253.5 trillion won (US$226.12 billion) at the end of last year to 364.05 trillion won (US$324.73 billion) as of November 10. The market cap of SK Hynix also grew from 32.5 trillion won (US$28.98 billion) to 59.7 trillion won (US$53.24 billion), while that of LG Electronics rose from 8.4 trillion won (US$7.49 billion) to 15.4 trillion won (US$13.73 billion). 

In addition, most of the nation’s top 10 business groups, except for Hyundai Heavy Industries, fell short of the total market cap increases of 27.2 percent on the domestic stock market. The market cap of Hyundai Heavy Industries increased by 6.5 trillion won (US$5.8 billion), or 52.1 percent, from 12.4 trillion won (US$11.06 billion) to 18.9 trillion won (US$16.86 billion). This is largely due to the relisting of the company’s three spinoff companies, including Hyundai Robotics and Hyundai Construction Equipment, this year. 

On the other hand, the market cap of Doosan Group decreased from 11.4 trillion won (US$10.16 billion) to 11.3 trillion won (US$10.07 billion), while that of Hyundai Motor Group increased by a mere 0.8 percent from 103.4 trillion won (US$92.18 billion) to 104.3 trillion won (US$92.98 billion). The rate of market cap increases of GS Group was 5.5 percent, Lotte Group 8.9 percent, Hanwha Group 17.5 percent and Shinsegae Group 23.9 percent, which were all below the average. 

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