Capitalization of Conglomerates
SEOUL, Feb. 17 (Yonhap) – South Korea’s top 10 conglomerates saw their stock market cap sink 5.32 percent this year, as most affiliated firms suffered a decline in their share prices amid a bearish run on the local stock market, data showed on Monday.
The combined market capitalization of affiliates under their wings stood at 693.86 trillion won (US$653 billion) as of Wednesday, compared with 732.84 trillion won at the end of last year, according to the data compiled by the Korea Exchange.
The decline was largely attributed to a slump in Samsung Electronics Co., the country’s top market cap, and other major companies.
During the cited period, the country’s key stock index, the KOSPI, slumped to 1,935.84 points from 2,011.34 points.
According to the data, Hyundai Heavy Industries Group, the country’s leading shipbuilding conglomerate, suffered the largest fall of 15.4 percent in its market cap to 20.29 trillion won (US$19.1 billion) as of Wednesday, followed by energy and retail giant GS Group with a 10.07 percent dip to 10.39 trillion won (US$9.8 billion).
Top conglomerate Samsung Group also saw its market cap decline 5.05 percent during the cited period to 302 trillion won (US$284 billion), with Hyundai Automotive Group suffering a 2.5 percent fall in its market cap to 142 trillion won (US$134 billion).
Hanjin Group, a major shipping and logistics group, was the only conglomerate whose market cap increased during the cited period. The group’s market cap rose to 3.99 trillion won (US$3.76 billion) from 3.8 trillion won (US$3.58 billion) over the cited period.
The affiliates of the 10 largest business groups accounted for around 54.66 percent of South Korea’s total stock market cap, down 1.48 percentage points from the end of last year, according to the data.