April 27, 2024

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[THE INVESTOR] The market capitalization of Korea’s top 10 listed business groups declined nearly 20 percent on-year as of Nov. 23 amid bearish market sentiment, the country’s stock operator said on Nov. 26.

The country’s largest business groups, including Samsung Group, Hyundai Motor Group, Lotte Group, POSCO, GS, Hanwha, Hyundai Heavy Industries and Shinsegae, lost 19.2 percent in market value, or 195.4 trillion won (US$172 billion), and are now valued at 823 trillion won, data compiled by Korea Exchange showed. 

Korea Exchange

A total of 125 companies under the 10 business groups are subject to tight mutual investment and loan guarantee restrictions under the fair trade law. The affiliates of large conglomerates with assets exceeding 10 trillion won are restricted from making equity investments in their affiliated companies or offering loan guarantees to each other.

Market cap the top 10 business groups, or 125 companies, accounted for 51.3 percent of the total market, decreasing from 52.9 percent a year ago. While the total market cap of Hyundai Heavy Industries Group increased by 3.9 percent from a year ago, nine groups saw their market value down, with Hanwha losing the biggest at 34.8 percent.

Samsung Group, the country’s largest conglomerate with 23 affiliates, lost 117 trillion won, or 21.2 percent of the total market value, from a year earlier.

By Park Ga-young (gypark@heraldcorp.com)