Top 10 Chaebols' Market Capitalization Increased by 80 Trillion Won This Year

Stock Price Rise and Affiliate Listings Impact
Total Market Cap Reaches 1,295 Trillion Won
Eight Groups Show Double-Digit Growth
POSCO Records Largest Increase at 31%

[Asia Economy Reporter Song Hwajeong] It has been revealed that the market capitalization of the top 10 conglomerates has increased by nearly 80 trillion won this year. The market capitalization grew due to a significant rise in stock prices in the first half of the year, along with new listings of affiliates. It is expected to surpass 1,300 trillion won this month.

According to financial information firm FnGuide on the 3rd, as of the closing price on the 1st, the combined market capitalization of the top 10 conglomerates was 1,295.1202 trillion won, an increase of 79.2904 trillion won (6.52%) compared to 1,215.8299 trillion won at the end of last year. With an increase of nearly 80 trillion won, the top 10 conglomerates are on the verge of surpassing 1,300 trillion won in market capitalization.

Among the top 10 conglomerates, eight showed double-digit growth rates. POSCO recorded the largest increase with a 31.59% rise in market capitalization, followed by Hanwha (28.92%), GS (23.32%), SK (22.74%), Shinsegae (21.20%), Hyundai Motor (19.93%), Hyundai Heavy Industries (17.0%), and Lotte (10.10%).

On the other hand, Samsung and LG groups saw a decrease in market capitalization. Samsung Group's market capitalization slightly decreased to 680.4647 trillion won from 682.4323 trillion won at the end of last year. LG Group (after the separation of LX Group) showed the largest decline with a 4.33% decrease compared to the end of last year.

Looking at affiliates, the emergence of newly listed affiliates stands out. SK Group's SK Bioscience and SK IE Technology, which were listed in the first half of this year, recorded market capitalizations of 23.6003 trillion won and 14.8655 trillion won respectively, contributing to the overall increase in SK Group's market capitalization. Although SK Chemicals (-31.41%), SK Biopharm (-26.63%), SK Discovery (-25.95%), and SK Hynix (-8.86%) saw significant decreases, the newly listed affiliates helped the total market capitalization grow by more than 22%. Lotte Group's recently listed Lotte Rental also contributed to the increase with a market capitalization of 1.8097 trillion won.

The affiliate with the largest increase in market capitalization was POSCO Coated & Color Steel. Its market capitalization surged 274.14% from 104.4 billion won at the end of last year to 390.5 billion won. Following this, Hanwha Investment & Securities and LG HelloVision showed triple-digit growth rates of 122.32% and 102.58%, respectively.

Conversely, Hyundai Energy Solutions showed the largest decline with a 31.62% decrease compared to the end of last year. The leading stock, Samsung Electronics, decreased by 5.19%. Although Samsung Engineering (79.25%), Samsung SDI (25.48%), and Samsung Securities (22.37%) increased in market capitalization, the overall group market capitalization slightly decreased due to declines in Samsung Electronics, Samsung Heavy Industries (-10.37%), and Samsung Life Insurance (-6.32%). LG Group also struggled as LG Chem, the largest affiliate by market capitalization, decreased by 12.5%, and LG Household & Health Care fell by 9.75%.

The market capitalization of the top 10 conglomerates is expected to surpass 1,300 trillion won this month. This is because Hyundai Heavy Industries is scheduled to enter the stock market on the 16th. Hyundai Heavy Industries' public offering price band is 52,000 to 60,000 won, with an expected market capitalization of 4.616 to 5.326 trillion won. The subscription for general investors will be held on the 7th and 8th, and it will be listed on the KOSPI market on the 16th. Shinhan Investment Corp. gave Hyundai Heavy Industries a 'Buy' rating, a target price of 90,000 won, and named it the top preferred stock in the sector. Researcher Hwang Eoyeon of Shinhan Investment said, "The company, which requires a valuation premium, is expected to be listed at the lowest price-to-book ratio (PBR) band in the sector of 0.77 to 0.87 times (Samsung Heavy Industries 1.33 times, Daewoo Shipbuilding & Marine Engineering 1.1 times)," adding, "With the recovery of the energy carrier ship market in the second half, differentiated order backlog growth due to strengthened environmental regulations in 2023, and ship price increases, the valuation gap with competitors is expected to narrow after listing."

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