South Korea’s top 10 business groups has lost a whopping 184 trillion won (US$163.99 billion) in market capitalization this year. This is largely due to an increasing volatility in the global financial market and concerns over a downturn in major industries, such as memory chip, car and display.
According to market data provider FnGuide on Dec. 27, the combined market cap of 98 listed companies affiliated with the country’s top 10 business groups came to 743.68 trillion won (US$662.82 billion) as of the 26th, down 19.27 percent, or 183.49 trillion won (US$163.54 billion), from 927.18 trillion won (US$826.36 billion) at the beginning of the year. Samsung Group units, which account for 33 percent of the total market cap on the KOSPI, were responsible for more than half of the combined loss.
The combined market cap of 16 listed subsidiaries of the Samsung Group plunged by 23.64 percent, or 112.84 trillion won (US$100.57 billion), from 477.41 trillion won (US$425.5 billion) to 374.57 trillion won (US$333.85 billion) over the same period. The value of the bellwether Samsung Electronics dropped by 30.48 percent from 329.33 trillion won (US$293.52 billion) to 228.94 trillion won (US$204.05 billion). In addition, the group’s other major subsidiaries showed a loss in market cap, including Samsung Life Insurance Co. at -31.43 percent, Samsung C&T Corp. at -18.82 percent and Samsung Biologics Co. at -7.57 percent.
The combined market cap of 17 subsidiaries affiliated with the SK Group fell by 14.38 percent from 126.58 trillion won (US$112.82 billion) to 108.37 trillion won (US$96.59 billion). SK Hynix Inc. saw its market cap decrease by 21.54 percent from 55.77 trillion won (US$49.7 billion) to 43.75 trillion won (US$39 billion), while SK Innovation Co. and SK C&C Co. showed a drop by 11.86 percent and 9.72 percent, respectively. On the other hand, the market cap of SK Telecom Co. increased by 1.32 percent from 21.44 trillion won (US$19.11 billion) to 21.72 trillion won (US$19.36 billion).
The LG and Hyundai Motor groups also showed a loss in market cap. The combined market cap of LG's 12 listed subsidiaries decreased by 21.96 percent from 104.68 trillion won (US$93.3 billion) to 81.69 trillion won (US$72.81 billion). the Hyundai Motor Group lost 15.09 percent in the combined value of its 11 listed affiliates from 93.5 trillion won (US$83.33 billion) to 79.39 trillion won (US$70.75 billion).
For the LG Group, its main unit LG Electronics Inc. shrank by 44.02 percent, LG Display Co. by 38.2 percent, LG Chem Ltd. by 13.99 percent, LG Household & Health Care Ltd. by 10.58 percent, showing a double-digit decline. For the Hyundai Motor Group, Hyundai Mobis Co. also dropped by 26.07 percent, Hyundai Motor Co. by 22.14 percent and Hyundai Glovis Co. by 6.52 percent.
The combined market cap of 11 subsidiaries of the Lotte Group and six subsidiaries of the GS Group declined by 2.35 percent and 0.28 percent, respectively. The Hyundai Heavy Industries Group, which has five affiliates, was the only group that saw its market cap grow by 3.93 percent.
The combined market cap of six listed subsidiaries of the POSCO Group decreased by 19.98 percent from 35.81 trillion won (US$31.92 billion) to 28.66 trillion won (US$25.54 billion), while that of seven affiliates of the Shinsegae Group dropped by 18.35 percent from 11.81 trillion won (US$10.53 billion) to 9.64 trillion won (US$8.59 billion).
The Hanwha Group shed 33.13 percent in the combined value of its seven listed subsidiaries from 18.12 trillion won (US$16.15 billion) to 12.12 trillion won (US$10.8 billion), showing the biggest loss among the nation’s top 10 business groups. A number of the group’s affiliates recorded more than 20 percent of loss in market cap as the value of Hanwha General Insurance Co. fell by 30.93 percent, Hanwha Life Insurance Co. by 37.03 percent, Hanwha Chemical Co. by 39.65 percent and Hanwha Corp. by 27.86 percent.