The aggregate value of the South Korean stock market has decreased by close to 100 trillion won (US$90 billion) since the beginning of this year amid the ongoing trade war between the United States and China and interest rate hikes by the Fed that have led to financial market instability in emerging economies.
According to the Korea Exchange, the combined market cap of KOSPI and KOSDAQ totaled 1.789 quadrillion won (US$1.61 trillion) as of July 11, down 5.3% compared to the end of last year. The two bourses’ market caps fell 81.146 trillion won (US$73.03 billion) and 18.052 trillion won (US$16.24 billion), respectively.
During the period, that of Samsung Electronics decreased by approximately 33 trillion won (US$29.7 billion) from 328.943 trillion won (US$296.04 billion) to 295.289 trillion won (US$265.75 billion). Samsung C&T lost more than 1.7 trillion won (US$1.53 billion) while those of Hyundai Motor Company and Samsung Life Insurance fell 7.6 trillion won (US$6.84 billion) and 5.9 trillion won (US$5.31 billion) to show a decline of 22% each.
Hyundai Motor Company slid from third to sixth in the market cap rankings during the same period. Hyundai Mobis fell out of the top 10. This year, only SK Hynix and Samsung Biologics showed an increase in market cap based on a global semiconductor market boom and as the largest company in the local biotech industry. Their aggregate market values rose 7.5 trillion won (US$ 6.75 billion) and 2.9 trillion won (US$2.61 billion), respectively.