Top 30 Groups Lose KRW307tn in Market Value
The combined market capitalization of the top 30 Korean business groups has plunged by about 300 trillion won since the end of last year. Samsung Electronics’ market cap fell by 28 percent, while Naver and Kakao, leading growth stocks, saw their market value cut in half.
The aggregate market value of the top 30 Korean business groups stood at 1,331 trillion won at the close of the market on Oct. 7. This represented a decrease of 307 trillion won (18.7 percent) from 1,638 trillion won on Dec. 30, 2021.
The combined market cap of 16 listed companies of Samsung Group, the largest business group in Korea, shrank by 151 trillion won (22.5 percent), from 670 trillion won to 519 trillion won, during the same period. Samsung Electronics, the biggest company in Korea, suffered a 28.1 percent plunge in market value, from 467 trillion won to 336 trillion won. Samsung Electronics recorded an earnings shock in the third quarter by posting operating profit of 10.8 trillion won, a drop of 31.73 percent year-on-year and the first negative growth in three years.
As SK Hynix, the second-largest company in the KOSPI market, saw its market cap decrease from 95 trillion won to 66 trillion won due to a slump in the semiconductor market, the combined market cap of listed companies within SK Group descended by 74 trillion won (35.1 percent) from 211 trillion won to 137 trillion won. During the same period, the KOSPI index fell 25.0 percent from 2977.65 to 2232.84.
Two popular stocks -- Kakao and Naver -- both lost more than 50 percent of their market caps. Kakao’s market cap stood at 50 trillion won at the end of last year but sat at 22 trillion won on Oct. 7. The total market cap of four Kakao Group affiliates -- Kakao, Kakao Bank, Kakao Pay and Kakao Games -– dropped 63.3 percent to 40 trillion won during the period.
Naver’s market cap fell 58.1 percent from 62 trillion won to 26 trillion won. The Korean search giant announced on Oct. 5 that it will acquire Poshmark, an American fashion consumer-to-consumer (C2C) platform, for US$1.6 billion (about 2.28 trillion won). This news sparked off concerns over overpricing Poshmark, a company in the red, pulling down Naver’s stock price 7.08 percent.