KOSDAQ Hits Record High... Nearly 50 Companies Join the '1 Trillion Won Market Cap Club'

[Asia Economy Reporter Koh Hyung-kwang] It has been revealed that the number of companies listed on the KOSDAQ market with a market capitalization exceeding 1 trillion won is approaching 50. This is nearly double compared to the end of last year. This reflects the fact that the KOSDAQ index has risen nearly 40% this year, reaching an all-time high, and the value of pharmaceutical and bio-related stocks has surged due to the spread of the novel coronavirus infection (COVID-19). However, the issue of 'industry concentration,' where pharmaceutical and bio-related stocks account for nearly half of the top market capitalization companies, is pointed out as a challenge that needs to be addressed.

According to the Korea Exchange on the 14th, as of the closing price on the 11th, there were a total of 49 companies in the KOSDAQ market with a market capitalization exceeding 1 trillion won. Considering that there were 26 companies at the end of last year, this means that 23 companies (an 88.4% increase) have been added in one year, marking the largest number of '1 trillion won market cap club' members ever. Even on January 29, 2018 (927.05), when the KOSDAQ index hit its all-time high two years ago, there were only 42 companies with a market capitalization over 1 trillion won, fewer than this year. Compared to March 19 of this year (428.35), when the index hit its yearly low and there were only 15 companies with over 1 trillion won market cap, the number has increased more than threefold. This contrasts with the KOSPI market, which has been continuously rising and recently hit an all-time high, where the number of companies with a market capitalization over 10 trillion won increased by only one?from 31 (including preferred stocks) at the end of last year to 32 this month.

As of the 11th, the only company in the KOSDAQ with a market capitalization exceeding 10 trillion won is Celltrion Healthcare (24.1529 trillion won), and there are only three companies between 5 trillion and 10 trillion won: Celltrion Pharm (7.9642 trillion won), Seegene (5.3123 trillion won), and HLB (5.1812 trillion won). However, there are 12 companies between 2 trillion and 5 trillion won, including Alteogen, Kakao Games, EcoPro BM, Genexine, and Pearl Abyss, and a dense cluster of 33 companies with market caps in the 1 trillion won range, ranked from 17th (Com2uS, 1.9788 trillion won) to 49th (Classys, 1.0062 trillion won).

The combined market capitalization of companies with over 1 trillion won amounts to 125.7592 trillion won, accounting for 34.1% of the total KOSDAQ market capitalization (368.3415 trillion won). Thus, 49 companies represent about one-third of the approximately 1,400 companies listed on the KOSDAQ market.

◆ Rapid Increase in Value of Pharmaceutical and Bio Stocks = The sharp increase in the number of companies in the 1 trillion won market cap club is partly due to the KOSDAQ index rising 38.6% (258.61 points) from 669.83 at the end of last year to 928.44 on the 11th, reaching an all-time high. More importantly, the value of pharmaceutical, bio, IT, and gaming companies has significantly increased due to the spread of COVID-19.

Celltrion Healthcare, the top company on the KOSDAQ, saw its market capitalization increase by 216.6%, from 7.6281 trillion won at the end of last year to 24.1529 trillion won. Similarly, the 2nd and 3rd ranked companies, Celltrion Pharm (1.3567 trillion won → 7.9642 trillion won) and Seegene (804 billion won → 5.3123 trillion won), surged by 487.0% and 560.7%, respectively, during the same period. Additionally, the 5th and 8th largest companies by market cap on the KOSDAQ, Alteogen (929.6 billion won → 4.9145 trillion won) and Genexine (1.485 trillion won → 3.1913 trillion won), also increased by 2 to 5 times, showing a significant rise in the market capitalization of bio-related stocks.

However, there are concerns that the top market capitalization companies leading the KOSDAQ are filled with pharmaceutical and bio companies. Among the 49 companies in the 1 trillion won market cap club, 20 are pharmaceutical and bio companies, and notably, all of the top 5 companies within the top 10 market capitalization companies representing the KOSDAQ are pharmaceutical and bio stocks. A financial investment industry official said, "It is welcome that the value of major listed companies is rising due to the KOSDAQ rally," but added, "However, there are indeed concerns about the excessive concentration on bio stocks and the overheated trend resembling indiscriminate investment."

This content was produced with the assistance of AI translation services.