The 'KOSPI Leading Star' Transformed by the Rookie Storm

Analysis of Top 20 KOSPI Market Caps
6 Stocks in Top 10 Change Rankings
All Stocks Ranked 11-20 Have Changed

[Image source=Yonhap News]

[Asia Economy Reporter Song Hwajeong] This year, the record-breaking initial public offerings (IPOs) have brought significant changes to the top market capitalization stocks on the KOSPI. While the Kakao group stocks, which launched a series of major IPOs, showed remarkable progress, NCSoft lost its position as the leading game stock due to Krafton's listing and fell out of the top 20.

According to the Korea Exchange on the 27th, 80% of the top 20 stocks by market capitalization changed their rankings compared to the end of last year. Within the top 10, six stocks experienced ranking changes, and all stocks ranked 11th to 20th saw shifts in their positions.

Within the top 10, internet stocks showed strong performance. NAVER rose from 6th last year to 3rd, overtaking LG Chem, and Kakao climbed five spots from 9th to 5th. Conversely, LG Chem, which was 3rd last year, dropped to 8th, and Celltrion, previously 5th, fell out of the top 10. Kia and KakaoBank newly entered the top 10 this year. Kia, which was 12th at the end of last year, successfully entered the top 10 this year, holding the 9th position. KakaoBank, which went public in August, debuted on the KOSPI at 11th place and later rose to 10th. Additionally, Hyundai Motor, previously 8th, climbed to 6th recently, buoyed by expectations for electric vehicles. Samsung Electronics and SK Hynix firmly held the 1st and 2nd positions, while Samsung Biologics (4th) and Samsung SDI (7th) maintained their rankings.

All stocks ranked 11th to 20th changed their positions. Celltrion, which dropped from 5th, now sits at 11th, while Hyundai Mobis and POSCO each moved up one spot. KB Financial jumped from 18th last year to 14th, and newcomers Krafton and Kakao Pay ranked 15th and 17th, respectively. Samsung C&T, which was 10th last year, fell to 18th, and LG Household & Health Care, NCSoft, and Korea Electric Power Corporation (KEPCO) dropped out of the top 20.

This year saw extreme ranking fluctuations due to major IPOs. Last year, only Kakao was listed within the top 20, with the Kakao group’s market capitalization at 34 trillion won. However, with the consecutive listings of KakaoBank and Kakao Pay, the market cap ballooned to 101 trillion won. The emergence of these newcomers also changed the leading stocks in their sectors. KakaoBank immediately took the lead in the financial sector upon listing, and Krafton displaced NCSoft to become the top game stock.

Stocks exposed to various negative factors such as poor earnings could not avoid declines in market capitalization rankings. LG Household & Health Care, which suffered from the impact of COVID-19 and concerns about the Chinese market, fell from 11th last year to 23rd. Celltrion also dropped six spots due to weak earnings this year, and NCSoft fell nine places amid controversies over in-game charges and the poor performance of Blade & Soul 2.

The competition for top market capitalization stocks is expected to remain fierce next year. In particular, LG Energy Solution’s upcoming IPO in January has attracted attention regarding how high it will rank upon entering the KOSPI. LG Energy Solution’s market capitalization is expected to be around 60 to 70 trillion won based on the offering price. NAVER, currently ranked 3rd, has a market cap of about 63 trillion won, so LG Energy Solution is expected to compete with NAVER for the 3rd spot after listing. LG Energy Solution’s IPO may further lower LG Chem’s market capitalization. Concerns that demand related to secondary batteries will concentrate on LG Energy Solution have led to continued weakness in LG Chem’s stock price. Last week, LG Chem’s stock hit new 52-week lows repeatedly, falling to the 620,000 won range.

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