Market Cap of Top 10 Conglomerates Plunges by 1,700 Trillion Won in a Month

From 5,564 Trillion to 3,868 Trillion Won Since Late June
Half of First-Half Gains Lost in Just One Month
SK, Shinsegae, and Samsung Lead Declines
GS Group Posts Sole Increase

After experiencing historic volatility in the market last month, the combined market capitalization of the top 10 business groups in South Korea shrank by approximately 1,700 trillion won. This means about half of the gains made in the first half of this year were wiped out in just one month.

According to financial data provider FnGuide on August 6, the total market capitalization of South Korea’s top 10 business groups stood at 3,868.8189 trillion won. This represents a decrease of 1,695.2694 trillion won (30.47%) from the 5,564.0883 trillion won reported at the end of June. While the historic bull market in the first half of this year boosted market cap by 3,249 trillion won, more than half of those gains were lost within just over a month.

By group, market capitalization fell for nine out of the ten major groups, with GS Group as the sole exception.

The steepest decline was recorded by SK Group. Its market capitalization plummeted from 2,238.2734 trillion won at the end of June to 1,322.1424 trillion won—an astonishing drop of 40.93% (916.131 trillion won). SK hynix and SK Square, which had led the first-half surge in market cap, saw their stock prices each fall by 42% after July, dragging down the group’s overall market value.

Shinsegae Group posted the second-largest decline, with its market capitalization falling 30.59% from 105.0264 trillion won to 73.0061 trillion won. This was largely due to a 43.38% drop in Shinsegae’s stock price. Department store stocks underwent corrections amid concerns that the wealth effect from the sharp stock price increases in the first half might weaken after a decline in the Kospi in July.

Semiconductor stocks also plummeted in July, leaving Samsung Group unable to escape the storm. Samsung Group's market capitalization fell 28.94%, from 2,481.0274 trillion won at the end of June to 1,762.9747 trillion won, leading the overall market cap decline. The market value of Samsung Electro-Mechanics fell by 43.73%, and Samsung Electronics by 30.99%.

Other major groups, including Lotte (-9.80%), LG (-9.42%), Hyundai Motor (-9.35%), HD Hyundai (-7.66%), POSCO (-2.78%), and Hanwha (-2.66%), also failed to avoid a downturn.

In contrast, GS Group was the only group to post an increase. Its market capitalization rose 30.30% from 14.7848 trillion won at the end of June to 19.2649 trillion won. This expansion is attributed to the strong performance of construction affiliates within the group. As a result, Xi S&D soared 91.08% since the end of June, GS rose 49.02%, and GS E&C increased by 29.88%, driving the group’s overall market cap growth. Xi S&D’s share price soared thanks to sustained growth in its architecture and housing business, coupled with new momentum from its data center segment. Yu-Rim Song, a researcher at Hanwha Investment & Securities, commented, "Even with just the existing architecture and housing sectors, mid- to long-term earnings growth is expected to be very steep, and strong earnings growth is expected over the next three to four years. The possibility of securing an order for the Donghae Artificial Intelligence Data Center (AIDC) is an additional growth driver. Xi S&D boasts top-tier domestic DC references, such as experience carrying out nine DC projects of over 20MW, and is expected to participate in the Donghae project’s construction with GS E&C in the second half."

While most of the market cap gains were forfeited in July's sharp decline, the full-year performance still shows most business groups sustaining growth. Compared to the end of last year, SK Group is up 120.02%, with increases also reported by Samsung (75.86%), GS (50.56%), Shinsegae (28.70%), and Hyundai Motor (20.77%). Among the top 10 groups, only POSCO Group saw its market capitalization decrease year-to-date, by 5.94%.

This content was produced with the assistance of AI translation services.