This year, as the domestic stock market struggled, large conglomerates showed mixed fortunes. Among the top 20 groups by market capitalization, 10, including Samsung and LG, declined, while 10 others, including SK and HD Hyundai, expanded their size.
According to the Korea Exchange on the 31st, Samsung Group is the number one by market capitalization at the end of this year. Samsung Group’s market capitalization of 17 companies is 506 trillion won, a decrease of about 151 trillion won from 657 trillion won at the end of last year. Compared to the market capitalization of Samsung Group surpassing 700 trillion won during the year, the drop was significant.
The decline in Samsung Electronics' market capitalization had a significant impact. Samsung Electronics' market capitalization reached 524 trillion won on July 10. However, concerns over the memory semiconductor market emerged, leading foreign investors to flood the market with sell orders, causing Samsung Electronics' market capitalization to shrink to 318 trillion won by the end of the year.
SK Group secured second place. The market capitalization of SK Group's 20 listed companies increased from 181 trillion won at the end of last year to 202 trillion won at the end of this year. However, SK Hynix's market capitalization soared to 175 trillion won in July but fell to 127 trillion won by the end of the year, reducing the group's market capitalization increase.
LG Group finished in third place, conceding the second position to SK Group at the beginning of the year. The market capitalization of LG Group’s 11 listed companies decreased by 44 trillion won to 142 trillion won compared to the end of last year. The downturn in the secondary battery and petrochemical sectors substantially affected the share prices of LG Energy Solution and LG Chem.
Hyundai Motor Group maintained fourth place, but its 12 listed companies' market capitalization dropped by 1 trillion won compared to the end of last year, amounting to 132 trillion won. The stock prices of Hyundai Motor, Kia, and Hyundai Mobis surged steeply until June, but most of those gains were given back in the second half. Additionally, Hyundai Steel and Hyundai Wia recently hit their lowest prices in a year, performing poorly.
HD Hyundai Group rose to fifth place. The market capitalization of HD Hyundai Group's nine listed companies more than doubled from 34 trillion won at the end of last year to 76.8 trillion won at the end of this year. Although there was an impact from the new listing of HD Hyundai Marine Solutions, the stock price of HD Hyundai Electric increased more than fourfold this year alone.
As orders piled up at the shipyards, the stock prices of HD Korean Shipbuilding & Marine Engineering, HD Hyundai Heavy Industries, and HD Hyundai Mipo also surged by around twofold. President-elect Donald Trump noted the need for cooperation with Korean shipbuilders, stimulating investment sentiment across the industry.
Celltrion Group ranked sixth, with the market capitalizations of its two listed companies increasing from 33 trillion won at the end of last year to 42.5 trillion won. POSCO Group saw its six listed companies' market capitalization halve from 94 trillion won at the end of last year to 42.5 trillion won at the end of this year, dropping from fifth to seventh place. The struggles in its key sectors, steel and secondary batteries, had a substantial impact.
Hanwha Group rose in ranking from 10th at the end of last year to 8th at the end of this year. During the same period, the market capitalization of its 11 listed companies increased from 30 trillion won to 41.1 trillion won. The defense industry gained momentum centered around Hanwha Aerospace, with Hanwha Ocean also providing support. Kakao and Naver dropped to 9th and 10th places, respectively.
Among the groups ranked from 11th to 20th, Young Poong Group exhibited notable ranking changes. Its market capitalization increased from 12.4 trillion won at the end of last year to 22.2 trillion won at the end of this year. Ongoing disputes over the management rights of Korea Zinc between Chairman Choi Yun-beom's side and Young Poong, along with MBK Partners, led to a rise in the stock prices of Korea Zinc and affiliated companies holding Korea Zinc equity. Korea Zinc at one point reached the fifth spot in the KOSPI market capitalization this month.
In contrast, Lotte Group (Lotte Holdings) and CJ Group fell in market capitalization rankings to 16th and 17th, respectively, dropping four spots each from the end of last year. Lotte Group was engulfed in liquidity crisis rumors centered on Lotte Chemical, although they managed to extinguish the immediate fire. Most of the stock prices in CJ Group, including CJ CheilJedang, CJ Logistics, and CJ ENM, saw declines.