On the 31st, Hyundai Motor fell one notch to fourth place by market capitalization in early trading as its stock price declined on concerns about production disruptions from supply chain turmoil due to the prolonged war between the United States and Israel and Iran.
As of 9:59 a.m. that day, Hyundai Motor shares were trading on the Korea Exchange at 456,000 won, down 2.88% (13,500 won) from the previous session. Its resulting market capitalization was 93.2672 trillion won.
Hyundai Motor's market capitalization ranking also fell by one notch. Until now, Hyundai Motor had ranked third by market capitalization on the Korea Exchange after Samsung Electronics and SK hynix.
However, it slipped to fourth place as it was overtaken by LG Energy Solution's market capitalization that day.
Amid concerns that the war between the United States and Iran could escalate, there are projections that automobile production could face disruptions.
Lee Jae-il, an analyst at Eugene Investment & Securities, said, "The unexpectedly prolonged war could act as a mid- to long-term risk factor, as it may trigger production disruptions due to margin pressure on the domestic auto industry and supply chain turmoil."
Lee said, "Various plastics, chemical products, and automotive semiconductors used in cars could face supply disruptions, and the increase in time required for shipments due to route diversions will also act as a short-term pressure factor on production."